1 Customize This Template! Insert your state agency’s logo Change the master slide to your state agency’s PowerPoint template Tailor the color scheme to match your state agency’s color scheme Add or delete slides Edit slides to include your state specific program information [see red text to “insert quotes from employees”] Insert staff contact information

An Alternative to Employee Lay-offs SHORT-TIME COMPENSATION Insert State logo here

What Is Short-Time Compensation? Short-time compensation, also known as worksharing or shared work, preserves jobs and your employer’s trained workforce during declines in regular business activity by reducing hours of work for an entire group of affected employees rather than laying off some employees while others continue to work full-time. 3 STC cushions the adverse effect of the reduction in business activity and keeps employees on-the-job for when business demand increases.

Here’s How it Works Rather than being laid off, eligible employees work a reduced number of hours in the work week and receive a portion of their weekly unemployment compensation (UC) payment based on the percentage of the reduction in hours. 4

100% Layoff Unemployment Compensation 20% Work Reduction Short-Time Compensation Total weekly UC benefit: $300 4 days regular pay (80% of $600) $480 + Weekly STC payment $60 _____________________________ Total weekly income: $540 (Versus $600 at 40 hours for regular, full-time work) Pat Smith normally works 40-hours per week & earns $600 in regular pay. Under the STC program, Pat’s hours are reduced by 1 day of work per week- from 5 days to 4 days (20% reduction). How does this compare to a total layoff for Pat? [Note: Example provided for illustration purposes. State can revise numbers to reflect salary and UC payment typical for workers in the state] 5

What’s in it for Employees? 6

STC is an Alternative to Layoffs [“Insert quote from employee participant here”]  Continued employment versus total unemployment in a challenging labor market 7

STC Keeps Employees on the Payroll [“Insert quote from employee participant here”]  Employees retain connection with their current employer  Continue to work and earn wages  Receive a portion of unemployment insurance benefits 8

STC Allows Employees to Retain their Benefits [“Insert quote from employee participant here”]  Healthcare coverage is maintained  Contributions to employee retirement plans continue 9

STC Keeps Workforce in Place [“Insert quote from employee participant here”]  Work teams stay together  Employees remain productive and maintain skills  When times get better, employees are in place and ready to respond to the increase in business. 10

STC Maintains Morale [“Insert quote from employee participant here”]  Company respects the value of their employees  Company acknowledges that employees can be part of the solution  Company recognizes the difficulties individuals experience with being totally unemployment and found an alternative to laying off its workers 11

STC is a Win for Employees! When business is slow, employees stay with their employer – on-the-job and ready for when business demand increases. Employees stay current on their work skills. 12

Want to Learn More ? Staff Contact: Telephone: Website: 13