DELAURO FIGHTS TO PREVENT JOB LAYOFFS
Re-introduces work-share legislation to help struggling companies reduce hours instead of their workforce
Washington, DC—Congresswoman Rosa L. DeLauro (CT-3), Ranking Member on the Labor, Education, Health, and Human Services Appropriations Subcommittee, introduced the Layoff Prevention Act of 2011 today.
This legislation will help struggling companies reduce hours instead of their workforce, enabling workers to maintain jobs and companies to save on rehiring costs. Additional funds for program implementation, improved administration, and enrollment will further help companies participating in work sharing. Workers who participate in this program receive a portion of Unemployment Insurance (UI) benefits to make up for lost wages. 23 states across the country already have similar programs, and have saved over 200,000 jobs in the last three years.
Senator Jack Reed (D-RI) has introduced companion legislation in the Senate.
“This program is a win-win for America’s workforce, companies, and our economy. Workers are able to maintain employment in a tough job market, companies prevent business disruption and skill erosion, and with fewer workers unemployed, there is less of a burden on the Unemployment Insurance (UI) benefits system,” said Congresswoman DeLauro. “Work sharing is an innovative and strategic way for companies to move forward without laying off workers. It is essential that we save the jobs that we can, preserving our workforce and ensuring that our nation and our workforce will weather this tough economy.”
A summary of the legislation is below.
Summary: Layoff Prevention Act of 2011
Reed/DeLauro
Overview: Prevents further layoffs and job loss through new incentives for work sharing, also known as short-time compensation. Work sharing prevents business disruption and skill erosion by allowing businesses to keeps employees on the job with reduced hours. Employees in turn receive partial Unemployment Insurance (UI) benefits to make up for lost wages. With fewer workers unemployed, there is then less of a burden on the UI system.
States with work sharing laws (23): Arizona, Arkansas, California, Colorado, Connecticut, Florida, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, and Washington.
Multiple studies have found that countries that adopted more robust work sharing programs weathered the recent recession with lower unemployment rates.
Specific Provisions:
· Offers Temporary Federal Financing
States with approved work sharing programs receive federal financing for 100% of work sharing benefits paid to workers. This financing program is available for up to 3 years. States with existing work sharing programs automatically receive 100% financing for 2 years and are eligible for a 3rd year once their program is approved. States without work sharing programs can take advantage of a federal program that would provide employers with access to work sharing and states with federal financing for 50% of work sharing benefits. This financing is available for 2 years.
· Provides Additional Incentives
States with approved work sharing programs are eligible for grants for implementation and improved administration and larger grants for promotion and program enrollment efforts.
· Contains Limitations Focused on Long-term Employment
Employers cannot participate if their workforce is employed on a seasonal or temporary basis.
· Enhances Work Sharing
Requires the Department of Labor to 1) update model legislative language to help states develop and enact work sharing programs (model language was last updated during the 1980s); 2) consult with employers, states, and others to improve the administration of work sharing; 3) provide technical assistance and guidance to states; and 4) survey states and employers to determine challenges to enacting work sharing.
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DeLauro.House.Gov