Bill > HR2421

This bill, the Layoff Prevention Act of 2011, aims to provide financial incentives and guidance for states to establish "short-time compensation programs," which allow employers to reduce employees' work hours instead of laying them off, with eligible employees receiving a pro-rata portion of their unemployment benefits. The bill amends the Internal Revenue Code to define these programs, ensuring voluntary employer participation, continued health and retirement benefits for employees, and requiring union agreement for represented workers. It also provides federal funding to states that implement such programs, offering 100% reimbursement for short-time compensation payments for a limited period, and establishes grants for states to develop, promote, and administer these programs. The Secretary of Labor is tasked with developing model legislation, providing technical assistance, and reporting to Congress and the President on the implementation and effectiveness of these programs, with a goal of preventing layoffs and maintaining employment during economic downturns.