CHARLESTON, W.Va. — WorkForce West Virginia is rolling out a program for employers aimed at reducing layoffs.
The Short-Time Compensation (STC) Program allows hours to be reduced across the entire workforce and the wage difference is picked up by unemployment compensation through WorkForce West Virginia, according to WorkForce acting Commissioner Scott Adkins.
“It keeps the employee tied to the employer, so if there’s a reduction in work, the employee is still attached to the employer, and the employer keeps that trained worker ready to go when work picks back up,” Adkins said during a Wednesday news conference.
The plan keeps employees and their families on health insurance and earns retirement contributions until the business recovers. Maintaining a ready employee eliminates the employee search, reduces training time, and increases productivity and the bottom line for the employer.
“Under an STC plan, employees are not required to be able and available for work, nor are they required to do work search activities,” Adkins said.
The employer must have a plan approved by West Virginia WorkForce Development in advance of any work reduction to take advantage of the STC program. Employers eligible for the program must reduce business activity by at least 10 percent and not more than 60%.
“To receive benefits under STC, employers must have an approved STC plan in place with West Virginia WorkForce Development before there is a reduction in hours,” Adkins said. “The STC application process is initiated by the employer, not by the employees.”
Adkins used an example of a worker making $200 per day and is reduced to four days a week for five. That worker will receive $800 for the days worked and 20% of their maximum unemployment benefit of $500.
“Now, rather than receiving the maximum benefit amount of $500, they’ll be eligible for $900,” Adkins said. “So, now there’s a real benefit for workers there.”
While the program offers alternatives to layoffs, employees will still have unpaid weeks while administrators determine the level of compensation they qualify for.
“The employee may be required to serve a mandatory waiting week,” Adkins said. “Just like under current law, there’s a one-week unpaid waiting period to determine the eligibility of a prospective unemployment recipient.”
The program was created in a bill lawmakers passed in 2021 dealing with unemployment issues that surfaced during the pandemic.