SHORT-TIME COMPENSATION

1

Customize This Template!Insert your state agencys logoChange the master slide to your state agencys PowerPoint templateTailor the color scheme to match your state agencys color schemeAdd or delete slides Edit slides to include your state specific program informationInsert staff contact informationA Viable Layoff Aversion Strategy for EmployersSHORT-TIME COMPENSATION State logo herePlace verbiage in a footprint or circle center stage parking lot.2What Is Short-Time Compensation?3Short-time compensation, also known as worksharing or shared work, preserves jobs and an employers 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. STC cushions the adverse effect of the reduction in business activity and keeps employees on-the-job for when business demand increases.

3Heres How it Works4Rather 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.

4100% Layoff Unemployment Compensation20% Work Reduction Short-Time CompensationTotal weekly UC payment $300

4 days regular pay (80% of $600) $480+ Weekly STC payment $60_____________________________Total weekly income: $540

Heres How STC Compares to a Layoff5

(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, Pats 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]5Why Should Employers Choose STC?6

6STC Helps Employers7Temporarily reduces amount of wages payable

For some employers, the UI tax rate may be lower than if workers were totally unemployed

Keeps work teams in-place and skilled workers on the payroll

Maintain product/service quality levels with skilled workers

7STC Keeps Workforce in Place8Preserves skilled employees

Prevents an employer from having to re-invent recruitment strategies when new business needs appear

Alleviates the costs associated with hiring, re-hiring and training new employees when business picks up

8STC Helps Employees9Employee maintains health and retirement benefits

Employees spared the hardships associated with total unemployment

Supports employee morale

9Assistance is Available10State STC staff are available to help you launch and maintain your program

1011In ConclusionSTC protects an employers greatest asset employees! When business is down, employers keep their workforce intact and employees on-the-job and ready for when business demand increases.

11Want to Learn More?12Staff Contact:Telephone:E-mail: Website:

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