The Department of Labor (DOL) provided guidance on the CARES Act and Short-Term Compensation (STC) programs. The DOL issued this guidance in the Unemployment Insurance Program Letter 20-21 and included the following:
- An STC program is a layoff aversion program, also known as a shared work program. With this program, employers can reduce their associates’ work hours and preserve their associates’ jobs during a workforce interruption like COVID-19. Associates can, in turn, receive reduced unemployment benefits.
- According to the DOL, an STC program can “serve as a means of bringing most, or all, of a temporarily laid off workforce ac to the job, even if social distancing measures, a decline in business, or other factors prevent operating at full staffing levels.”
- CARES Act allows relief for the below:
- Temporary, one hundred percent federal financing of STC payments in a state with an STC program, whether that program is new or pre-existing
- $100 million in grants to support states that implement and administer STC programs
- DOL will allot technical assistance and guidance to states that implement STC programs
Our office will monitor COVID-19 updates closely and will send out additional announcements as we become aware of any updates. You can also review these updates on our website at https://www.thomas-and-company.com/covid-19/ too.
Please reach out to your representative with any questions.