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Labor Dept. announces guidance on work sharing

By: DOLAN MEDIA NEWSWIRES//July 5, 2012//

Labor Dept. announces guidance on work sharing

By: DOLAN MEDIA NEWSWIRES//July 5, 2012//

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By Remco Zwetsloot
Dolan Media Newswires

The Department of Labor has issued a guidance to state agencies on a new program for short-time unemployment compensation or “work sharing.”

Work sharing is part of the Unemployment Insurance program created by the 2012 Middle Class Tax Relief and Job Creation Act, which was signed into law in February. It allows employers to avoid layoffs by reducing the hours of certain groups of employees. The measure also allows workers whose hours have been cut to get compensated through weekly unemployment payments.

“Work sharing is a win-win for workers and employers,” said Secretary of Labor Hilda L. Solis in a statement announcing the guidance. “This program will provide more flexibility to workers and employers so they may more efficiently and effectively weather the ups and downs of the economy.”

The guidance released by the department stipulates a new federal definition of short-time compensation, which, among other things, allows employees to continue receiving health insurance and retirement benefits. It also helps states that already have work sharing programs switch to the new definition and provides direction on how to transition from state to federal funding if permanent programs are already in place.

The Labor Department is expected to issue additional guidance on implementing other aspects of the short-time compensation program.

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