Employer Views about the Short-Time Compensation Program: A Survey and Analysis in Four States

Abstract

The U.S. Department of Labor (DOL) Employment and Training Administration (ETA) contracted with IMPAQ International, LLC (IMPAQ) to conduct a study of employer views about the Short-Time Compensation (STC) Program. STC, also known as work-sharing or shared-work, is an alternative to layoffs for employers that preserves employees' jobs and employers' trained workforces during disruptions to a firm's regular business activity. Under STC the employer reduces the hours of work of employees in an affected unit rather than laying off some employees while others continue to work full-time. IMPAQ conducted this study to investigate the characteristics of employers and employer awareness of, participation in, and perceptions of the STC program. The study included a survey of employers in Kansas, Minnesota, Rhode Island, and Washington; site visits to state workforce agencies (SWA); an analysis of administrative data; and a comprehensive literature review.