DELAURO, REED APPLAUD PASSAGE OF WORK SHARE LEGISLATION

Washington, DC— Congresswoman Rosa DeLauro (CT-3) and Senator Jack Reed (D-RI) applauded the passage today of the Middle Class Tax Relief and Job Creation Act of 2012, which included a provision based on the Layoff Prevention Act.

Introduced by DeLauro and Reed last year, the Layoff Prevention Act will provide federal support for states to develop new and implement existing work sharing programs that give employers the flexibility they need to maintain their workforce and keep American workers on the job. Struggling companies will be able to reduce hours instead of their workforce, helping them save on rehiring costs, while employees will keep their jobs and receive a portion of Unemployment Insurance (UI) benefits to make up for lost wages. Already 23 states and the District of Columbia have implemented similar programs, saving over 200,000 jobs in the last three years.

"Work sharing is an innovative way to address the challenges employers are facing in today's difficult economy. By providing employers with this alternative to layoffs, we will preserve jobs, help struggling companies survive without disrupting their business, and reduce the burden on the Unemployment Insurance (UI) benefits system," said Congresswoman DeLauro. "Work sharing is a win-win situation for all involved, and will help build a stronger, more flexible economy."

"Unemployment is too high. We need to do everything we can to help businesses save and create jobs and work sharing has been an important and effective, but underutilized tool," said Reed, who wrote the work sharing legislation and succeeded in including it in the payroll tax cut bill as a member of the conference committee. "Work sharing is a proven job-saver in both red states and blue states. It helps businesses retain skilled workers they have spent time and money to hire and train, keeps workers attached to the workplace and off the unemployment compensation rolls, and it should be expanded. My new work sharing law will increase utilization of the program, prevent layoffs and save taxpayers money by keeping people on payrolls and reducing their need to access full unemployment compensation or benefit programs."