,,ii #aafth ,,congress #b;d ,session ,s4 #dcjc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bc1 #bjbj,mr4 ,reed introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to improve ,state short-time compensation programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,workforce ,retention ,act of #bjbj4 #b4 ,extension of temporary financing of short-time compensation programs 7a7 ,states with programs in law ,section #bajh7;b77#b7 of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjbb4 7b7 ,states with short-,time compensation agreements ,section #baji7;d77#b7 of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjbb4 #c4 ,improvements to short-time compensation programs 7a7 ,states with programs in law ,section #bajh7;a7 of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended by striking paragraph 7#c7 and inserting the following3 7#c7 ,limitations on payments ,no payments shall be made to a ,state under this section for short-time compensation paid to an individual by the ,state during a benefit year in excess of #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 4 7b7 ,states with short-,time compensation agreements ,section #baji of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended-- 7#a7 in subsection 7b7-- 7,a7 by striking paragraph 7#b7 and inserting the following3 7#b7 ,limitations on plans ,a short-time compensation plan approved by a ,state shall not permit the payment of short-time compensation to an individual by the ,state during a benefit year in excess of #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 2 and 7,b7 by striking paragraph 7#c72 and 7#b7 in subsection 7c77#a77;,a71 by striking one-half and inserting #ajj percent4 #d4 ,enactment of permanent short-time compensation programs 7a7 ,requirement 7#a7 ,in general ,section #ccjd7;a7 of the ,internal ,revenue ,code of #aihf 7relating to approval of ,state unemployment compensation laws7 is amended-- 7,a7 in paragraph 7#d77;,e71 by inserting 1 as required under paragraph 7#ai7 after #ccjf7v772 7,b7 in paragraph 7#ah71 by striking and at the end2 7,c7 by redesignating paragraph 7#ai7 as paragraph 7#bj72 and 7,d7 by inserting after paragraph 7#ah7 the following new paragraph3 7#ai7 payment of short-time compensation is made under a short-time compensation program 7as defined in section #ccjf7v77 under the ,state law2 and 4 7#b7 ,conforming amendment ,section #cjc7;a77#e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7;a77#e771 is amended1 in the fifth proviso1 by inserting 1 as required under section #ccjd7;a77#ai7 of such ,code after #aihf74 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to weeks of unemployment beginning on or after the earlier of-- 7#a7 the date the ,state changes its statutes1 regulations1 or policies in order to comply with such amendments2 or 7#b7 ,january #a1 #bjbc4 #e4 ,requirements for short-time compensation programs 7a7 ,requirement 7#a7 ,in general ,section #ccjd of the ,internal ,revenue ,code of #aihf 7relating to approval of ,state unemployment compensation laws71 as amended by section #c1 is amended-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#ai7-- 7,i7 by inserting subject to paragraph 7#bj71 before payment of short-time compensation2 and 7,,ii7 by striking and at the end2 7ii7 by redesignating paragraph 7#bj7 as paragraph 7#ba72 and 7iii7 by inserting after paragraph 7#ai7 the following new paragraph3 7#bj7 subject to subsection 7g71 with respect to the short-time compensation program requirement under paragraph 7#ai71 the ,state law-- 7,a7 does not prohibit any employer1 other than an employer that is delinquent in the payment of unemployment insurance taxes1 from participating in such program solely based on the employer's experience rating2 7,b7 allows any employer with four or more employees to participate in such program2 7,c7 in the case where the ,state has continued weakness in economic demand affecting an employer1 provides for approval of such employer's short-time compensation for up to #eb weeks2 7,d7 prohibits a ,state from relying solely on an employer's history of recent layoffs as the basis for any disapproval of such employer's short-time compensation plan2 7,e7 does not prohibit submission or consideration of an employer's short-time compensation plan or any requested extension of such plan less frequently than once in a #b-year period2 7,f7 requires an employer with an approved short-time compensation plan to certify on a weekly basis the hour reduction for any employees covered under such plan without regard for earnings from an employer other than the employer covered under such plan1 eliminating any requirement that such employees individually certify any hour reduction each week2 and 7,g7 requires a ,state to increase the maximum percentage of workweek reduction to qualify for a short-time compensation program from #fj percent to #hj percent2 and 2 and 7,b7 by adding at the end the following new subsection3 7g7 ,authority ,to sunset ,any ,state that enacts a ,state law providing for the payment of short-time compensation under a short-time compensation program under paragraph 7#ai7 of subsection 7a7 may include a provision in such law that permits the requirements under paragraph 7#bj7 of such subsection 7a7 to expire after ,december #ca1 #bjbg4 4 7#b7 ,conforming amendment ,section #ccjf7v77#c7 of the ,internal ,revenue ,code of #aihf is amended by striking the percentage1 if any1 that is determined by the ,state to be appropriate 7but in no case more than #fj percent71 and inserting #hj percent4 7#c7 ,effective date ,the amendments made by subsection 7a7 shall apply to weeks of unemployment beginning on or after the earlier of-- 7,a7 the date the ,state changes its statutes1 regulations1 or policies in order to comply with such amendments2 or 7,b7 ,january #a1 #bjbc4 7b7 ,permanent financing for short-,time compensation programs ,title ,,ix of the ,social ,security ,act 7#db ,u4,s4,c4 #aaja et seq47 is amended by adding at the end the following3 #iab4 ,permanent financing for short-time compensation programs ,beginning on ,january #a1 #bjbc1 there shall be paid to each ,state with a ,state law providing for the payment of short-time compensation under a permanent short-time compensation program that meets the requirements for such a program under section #ccjf7v7 and paragraph 7#bj7 of section #ccjd7;a7 of the ,internal ,revenue ,code of #aihf1 an amount equal to-- 7#a7 #ajj percent of the amount of short-time compensation paid to individuals by the ,state pursuant to such program2 and 7#b7 any additional administrative expenses incurred by the ,state by reason of such program 7as determined by the ,secretary74 4 #f4 ,standard for timeliness ,not later than #ij days after the date of enactment of this ,act1 the ,secretary of ,labor shall establish a standard for timeliness for ,state determinations of approval of short-time compensation plans under a short-time compensation program 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf74 #g4 ,improved administration 7a7 ,administrative improvements ,section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 is amended by adding at the end the following3 7n7 ,annual reports on short-,time compensation programs 7#a7 ,in general ,the ,state agency charged with the administration of the ,state law shall-- 7,a7 provide an annual report to the ,secretary of ,labor on short-time compensation program activity within their ,state1 including information regarding-- 7i7 the number of approved employer short-time compensation plans2 7ii7 the size and industry of any covered employer2 7iii7 the number of employees covered by any such approved plan2 7iv7 the number of layoffs averted as a result of short-time compensation program utilization2 and 7v7 the gender1 race1 ethnicity1 and age of any employee covered by any such approved plan2 and 7,b7 review economic data1 layoff histories1 and industry trends to identify any employer who is at risk for future layoffs and conduct targeted outreach and education on any short-time compensation program offered by the ,state4 7#b7 ,enforcement ,whenever the ,secretary of ,labor1 after reasonable notice and opportunity for hearing to the ,state agency charged with the administration of the ,state law1 finds that there is a failure to comply substantially with the requirements of paragraph 7#a71 the ,secretary of ,labor shall notify such ,state agency that further payments will not be made to the ,state until the ,secretary of ,labor is satisfied that there is no longer any such failure4 ,until the ,secretary of ,labor is so satisfied1 such ,secretary shall make no further certification to the ,secretary of the ,treasury with respect to such ,state4 7#c7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 to the ,secretary of ,labor1 #bj1jjj1jjj to carry out this subsection4 ,amounts appropriated under the preceding sentence shall remain available until expended4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to weeks of unemployment beginning on or after the earlier of-- 7#a7 the date the ,state changes its statutes1 regulations1 or policies in order to comply with such amendments2 or 7#b7 ,january #a1 #bjbc4 #h4 ,grace period for full financing of short-time compensation programs ,section #bajh7;c7 of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended by striking shall be eligible and all that follows through the end and inserting the following3 shall be eligible-- 7#a7 for payments under subsection 7a7 for weeks of unemployment beginning after the effective date of such enactment2 and 7#b7 for an additional payment equal to the total amount of payments for which the ,state is eligible pursuant to an agreement under section #baji for weeks of unemployment before such effective date4 4 #i4 ,department of ,labor study and report on short-time compensation programs 7a7 ,study ,the ,secretary of ,labor 7in this section referred to as the ,secretary7 shall conduct a study on ,state short-time compensation programs 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf74 ,such study shall include an analysis of-- 7#a7 the operation and results of the short-time compensation programs contained in the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf772 7#b7 the extent to which such short-time compensation programs averted layoffs2 and 7#c7 any short-time compensation program1 or the equivalent1 used in ,organisation for ,economic ,co-operation and ,development member countries during the ,,covid-#ai pandemic1 with the aim of identifying improvements to the short-time compensation programs used in the ,united ,states4 7b7 ,report ,not later than ,january #a1 #bjbe1 the ,secretary shall submit to ,congress a report containing the results of the study conducted under subsection 7a71 together with recommendations for any such legislation or administrative action as the ,secretary determines appropriate4 7c7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 to the ,secretary of ,labor1 #gej1jjj to carry out this section4 ,amounts appropriated under the preceding sentence shall remain available until expended4 #aj4 ,increased funding for grants for short-time compensation programs ,section #baaj7;g7 of the ,relief for ,workers ,affected by ,coronavirus ,act 7contained in subtitle ,a of title ,,ii of division ,a of the ,,cares ,act 7,public ,law #aaf-acf77 is amended by striking #ajj1jjj1jjj and inserting #bej1jjj1jjj4 #aa4 ,short-time compensation enrollment incentive payments ,section #ijc of the ,social ,security ,act 7#db ,u4,s4,c4 #aajc7 is amended by adding at the end the following3 7j7 ,short-,time compensation enrollment payments 7#a7 ,in general ,for each of the fiscal years #bjba and #bjbb1 the ,secretary of ,labor shall provide for the making of short-time compensation enrollment incentive payments 7in this subsection referred to as incentive payments7 to the accounts of the ,states in the ,unemployment ,trust ,fund 7as established by section #ijd7;a771 by transfer from amounts in the ,federal unemployment account 7as established by section #ije7;g771 in accordance with succeeding provisions of this subsection4 7#b7 ,certification 7,a7 ,initial benchmark ,the ,secretary of ,labor shall certify an incentive payment to any ,state that increases the number of short-time compensation claims as a percentage of all unemployment insurance weekly claims of such ,state to an average of not less than #e percent for a #c-month period4 7,b7 ,additional benchmarks ,the ,secretary may create additional benchmarks1 upon which to certify an incentive payment1 for any ,state that increases the number of short-time compensation claims as a percentage of all unemployment insurance weekly claims of such ,state for a #c-month period4 7#c7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 to the ,federal unemployment account1 #ajj1jjj1jjj to carry out this subsection4 ,amounts appropriated under the preceding sentence shall remain available through fiscal year #bjbb4 4