Bill > S1333

This bill, the Layoff Prevention Act of 2011, aims to prevent layoffs by establishing and financing "short-time compensation programs," which allow employers to reduce employees' work hours instead of laying them off, with eligible employees receiving a portion of their usual unemployment benefits. The bill amends the Internal Revenue Code to define these programs, requiring voluntary employer participation, a reduction of at least 10% (but no more than 60%) in workweeks, and that employees are eligible for unemployment compensation proportional to their reduced hours, while also being available for their normal workweek and potentially participating in approved training. Crucially, employers must continue to provide health and retirement benefits to participating employees, and unions must agree to the plan if applicable. The federal government will provide temporary financing to states that implement these programs, covering 100% of short-time compensation payments for a limited period, and will also award grants to states to help them establish and administer these programs, with the Secretary of Labor tasked with developing model legislation, providing technical assistance, and reporting to Congress and the President on the programs' implementation.