Learn About the Short-Time Compensation Program

The Short Time Compensation Program in is a type of financial aid offered to qualifying businesses and employees within the state. This short time compensation for employees allows employers to maintain employed workers rather than issuing layoffs. businesses can voluntarily apply for the Short Time Compensation Program to keep valuable staff members, but law does not require it. Laid off employees who do not meet the Short Time Compensation Program eligibility requirements may still be eligible for other financial assistance programs. To learn more about the Short time Compensation Program, refer to the topics below:

  • Short time compensation for employees
  • Short Time Compensation Program eligibility requirements
  • How to apply for the Short Time Compensation Program

About Short Time Compensation for Employees

The Short time Compensation Program in is part of the Reemployment Assistance Law. The program provides short time compensation for employees who have had working hours reduced as part of a plan to avoid personnel layoffs. The Short Time Compensation Program eligibility requirements establish how many hours of work employers can reduce of effected staff.

The Short Time Compensation Program in issues reemployment checks, which supplement the regular payment received from the company. Short time compensation for employees will not cover all of the potential lost wages that result of a slowdown at the company. To determine short time compensation benefits amount, officials prorate regular Unemployment Insurance compensation for the number of hours reduced from normal employment. It is beneficial to provide short time compensation for employees with reduced hours, as these workers often do not qualify for Unemployment Insurance while still part-time employed and payments from the program help ease the economic impact of the reduction overall.

Likewise, the Short Time Compensation Program in is also not supposed to be a long-range solution and if the company does not experience a resumption of the business at full capacity, the funding will cease. Short Time Compensation Program eligibility requirements exists for both the employer and employees. Affected workers can find out if they are better suited for short-time or unemployment benefits by downloading our comprehensive guide here.

Learn About the Short Time Compensation Program Requirements

The Short Time Compensation Program in is not available to every business, as the company must meet eligibility requirements. One of the Short Time Compensation Program eligibility requirements is the number of total and impacted workers. To be eligible for short time compensation for employees, the business must have a minimum of 15 employees total with at least 10 percent of the workforce affected by the reduction in hours and wages, but no more than 40 percent. Employees of small businesses may need to .

A significant Short Time Compensation Program eligibility requirement is the plan furnished when applying. Employers must prove that within a years’ time they will be back to full production once more and will resume paying normal wages. The Short Time Compensation Program in requires employers to provide a plan for giving notice and requires that they remove themselves from the program when less than 10 percent of the workforce with reduced hours.

Short Time Compensation Program eligibility requirements stipulate that the employee must also meet eligibility criteria to qualify for financial aid. The Short Time Compensation Program in does not apply to seasonal workers or part-time employees. New workers hired just within a few months of the implementation of the Short Time Compensation Program in still qualify for coverage under the program, if they meet the other requirements. Employees who receive short time compensation must continue to work their allotted hours.

Workers are not compelled to agree to the program and are free to leave the company if they so choose. Those who opt to participate in the short time compensation for employees through the business can, however, take on part-time jobs outside of the company and not be in breach of contract. Some limitations to this rule do apply, so before moving forward with the second job it is always best to check with the HR department to learn about the rules for doing so.

Discover How to Apply for the Short Time Compensation Program

Employers who wish to participate in the Short Time Compensation Program in must apply to be a part of the program before being able to offer it to their workforce. To apply for the Short Time Compensation Program, employers must create an account through the Department of Economic Opportunity website. Applying for short time compensation for employees is exclusively online. The process to apply for the Short Time Compensation Program in requires furnishing requested documents as well as information on the affected employees. One of the many benefits employers receive from the Short Time Compensation Program is avoiding the resources required when hiring new qualified employees.

Like Unemployment Insurance, affected workers must make claims for the Short Time Compensation Program. Employees must apply for the Short Time Compensation Program biweekly through their online account. Each period, the employee will need to provide the following information:

  • Personal identification (Social Security card or driver’s license)
  • Contact information
  • Gross earnings before taxes
  • Name of the employer or company
  • Employer’s identification number

Failure to meet these Short Time Compensation Program eligibility requirements biweekly will result in nonpayment of benefits. Workers can find out more about applying for state-provided financial assistance by clicking here and downloading our free guide.