HB 1149

Effective October 1, 2026, enacts Article 6, “Short-Time Compensation,” to GS Chapter 96. Defines eight terms. Requires employers wishing to participate in the short-time compensation program to submit a short-time plan to the Department of Commerce’s (DOC) Division of Employment Security (Division). Lists ten required components of the application to request approval of a plan, including: identifying the affected units covered by the plan, the weekly hours of work affected and the specific percentage by which hours will be reduced; certification by the employer that the aggregate reduction in work hours is in lieu of layoffs, whether temporary or permanent; and certification by the employer that any affected collective bargaining unit agrees with the plan. Provides flexibility in the application contents where industries and modes of operation present good cause. Conditions eligibility on the employer having no outstanding employment security contributions, penalties, or interest. Requires the Division to approve or disapprove of the plan within 30 days of receipt. Allows submitting a subsequent plan after 90 days from disapproval. Provides for an approved plan's effective date being that specified on the approval notice with expiration either twelve months from that date or an earlier agreed upon date. Allows for an employer to terminate a plan at any time upon written notice and submit a new application at any time after expiration or termination. Authorizes the Division to revoke approval for good cause at any time and permits periodic review of employer operations. Defines good cause. Establishes a procedure for modifying an approved plan. Specifies that while every change to the plan must be reported in writing, only substantial changes to the plan require requests for modification.