WASHINGTON, DC – Thanks to U.S. Senator Jack Reed’s (D-RI) work sharing law, the U.S. Department of Labor is granting the state of Rhode Island $328,092 in federal funding to help prevent job layoffs and support implementation and promotion of the state’s short-time compensation (STC) program.  Reed’s law provides an estimated $500 million nationwide for business-state partnerships to help prevent layoffs.  Since it was enacted in 2012, Rhode Island has received over $6.3 million in federal reimbursements and grants from Reed’s law and has used those funds to help save about 1,270 jobs across the state.

STC programs, commonly known as “work sharing,” help people who are currently employed, but in danger of being laid off, keep their jobs.  These programs keep workers on the job by giving struggling companies the flexibility to reduce hours instead of their workforce, helping them save on rehiring costs while employees keep their jobs and receive a portion of Unemployment Insurance (UI) benefits to make up for lost wages.  Companies are able to remain competitive by lowering costs and keeping a skilled work force, employees keep their jobs and health benefits, and states only pay a fraction of the price it would cost if the workers went on unemployment.

“I am pleased that Rhode Island is receiving an addition $328,000 in federal funding to help save jobs.  This is a proven, cost-effective program that helps ensure workers can earn a steady paycheck and allows companies to save when they’re forced to temporarily scale back,” said Reed, whose Layoff Prevention Act was signed into law in 2012 as part of the Middle Class Tax Relief and Job Creation Act.  “Giving states an incentive to enhance and expand their work sharing programs is a smart investment in preventing future layoffs and blunting economic downturns.”

Rhode Island’s work sharing initiative has helped save over 14,840 jobs since 2008.  Under Reed’s law, the state will be relieved of all work sharing payments through August 22, 2015.

Rhode Island is among 30 states and the District of Columbia that have implemented similar programs, saving over 521,000 jobs nationally since 2008.  However, several states do not have work-sharing programs, and it is often under-publicized and underutilized by businesses in states that do.

The states that currently have STC programs include: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, Vermont, Washington, and Wisconsin.

The U.S. Department of Labor has developed a new online resource to help states interested in developing or improving STC programs: stc.workforce3one.org

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