Welcome to Workforce 3 One U.S. Department of Labor Employment and Training Administration Webinar Date: November 20, 2013 Presented by: U.S. Department of Labor Employment and Training Administration

2# Enter your location in the Chat window – lower left of screen

3# Gay Gilbert Administrator Unemployment Insurance Suzanne Simonetta Chief UI Legislation Lidia Fiore UI Program Specialist UI Operations

4#  Ensure As Many States as Possible Implement Short-Time Compensation (STC) and Take Advantage of Financial Incentives  Provide States an Overview of New STC Website and Other Technical Assistance Tools Available to Support State Implementation  Provide States with Information on DOL’s Campaign to Promote STC  Q & A

Secretary of Labor Thomas E. Perez explains how the STC program works #5

STC is a valuable layoff aversion strategy, especially during economic downturns It’s good for your state’s economy because it saves jobs You have an opportunity now to take advantage of Federal financial incentives to get a strong STC program up and running #6

Helps employers continue to provide quality services/products by retaining skilled workers. Skilled, trained work teams can remain intact as business improves. Avoids the time and expense of hiring and training new employees. Employee morale is maintained. For some employers, the UI tax rate may be lower than if employees were totally unemployed. #7

Workers keep their jobs and continue to earn wages. Workers retain their health insurance and retirement benefits. Reduction in pay is partially offset by Unemployment Insurance. Employees maintain job skills. #8

 Voluntary for state to operate an STC program.  State law provides for the program or State can try out the program by entering into agreement with the Secretary of Labor to operate the temporary Federal STC Program. #9

 Provided Funding for Reimbursement of STC benefits paid  Provided Grant Funding  Modified definition of STC in federal law #10

 100% Reimbursement of STC Benefits Paid 100% reimbursement through August 22, 2015 if state law conforms. If state had an STC program on February 22, 2012 and law does not conform, 100% reimbursement through August 23, When state law conforms, 100% reimbursement extended through August 22, State laws must conform by August 22,  Temporary Federal STC program via agreement with Secretary of Labor: 50% reimbursement through May 24, 2014 (the employer pays the other 50%).  Reimbursement amount is subject to the sequestration reduction. #11

Grant Funds Are Available to: Implement or improve an STC program Promote the program & enroll employers State STC law must conform to federal definition of STC, not subject to discontinuation, and effective within 12 months from grant approval. Application deadline December 31, 2014 #12

 Definition of STC in 3306(v) FUTA modified  State STC law must conform to the new definition –New state STC programs effective after February 22, 2012, must conform in order to commence operation. –States administering an STC program on February 22, 2012, have a transition period -- state law must conform by August 22, #13

STC requirements under 3306(v), FUTA:  Employer participation is voluntary.  Employer reduces employee hours in lieu of layoffs.  Work week reduction is at least 10% and no more than 60%.  Employees receive a pro-rata share of their UI benefits for reduced work hours.  Employees continue to be available to STC employer for full work hours (thereby meeting work availability and work search requirements). #14

STC requirements under 3306(v), FUTA (continued):  Eligible employees may participate in training (employer- sponsored or State-approved WIA funded training).  Employers must continue to provide health and retirement benefits.  Employers must submit an STC plan for state approval, which includes certain information.  Plans must be consistent with employer obligations under applicable Federal and state laws.  Other STC state statute provisions may be approved by the Secretary of Labor. #15

 States have great flexibility to customize their STC programs to meet their unique needs.  UIPLs & 22-12, Change 1 provide guidance about legal requirements.  More guidance is forthcoming.  The 2014 session of state legislatures is the last chance to enact laws that would make states eligible to receive an STC grant.  Staff is available to provide customized TA to states seeking to modify existing or establish new STC programs. #16

Everything your state needs to implement an STC program:  Drafting conforming legislation  Developing business processes to implement the program  Developing outreach strategies to engage businesses  Assistance in accessing financial incentives  And more! #17

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 STC web site is at:  Available to state workforce agencies, state policy makers, and the general public.  Feedback and submission of materials from states that will help expand the Web site’s resources are welcomed. #41

 Website Roll-Out and Ongoing Enhancement  Secretary of Labor Letters to Governors Promoting STC on November 13th  Today’s Webinar  Stakeholder Webinar on December 6 th with business organizations, worker advocates, and state legislatures  Acting Assistant Secretary Calls with Targeted States #42

 The USDOL/ETA is available to answer any questions and provide technical assistance to States launching or improving an STC program.  Technical Assistance provided: Division of Legislation staff is available to assist states with their STC legislation. Division of Operations staff is available to assist states with implementation and program operation questions. Regional office assistance also available. #43

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Please contact your regional office or Lidia Fiore at or at (202) #

Thank You! Find resources for workforce system success at: 46#