§9027 — Title 15 Commerce and Trade | U.S. Code

Summary

Allows a State to make an agreement with the Secretary of Labor to run a short-time compensation program if the State does not already have such a law. A State can end the agreement with 30 days’ written notice. The State agency will pay short-time compensation under a State-approved plan that follows the federal rules. The plan may not pay more than 26 times the State’s weekly regular benefit in a benefit year. Workers who are seasonal, temporary, or intermittent cannot get these payments. Each participating employer must pay the State half of the short-time compensation paid to its workers. That money goes into the State unemployment fund and won’t be used to set employer tax rates. The federal government will reimburse each participating State for half of the short-time compensation paid plus any extra administrative costs the Secretary of Labor approves. Reimbursements are made monthly and adjusted if estimates were wrong. Funds are provided as needed. Agreements cover weeks beginning on or after the agreement date and ending no later than September 6, 2021. If a State later enacts its own qualifying short-time compensation law, it stops getting payments under this agreement for weeks starting after that law takes effect. “Secretary” means the Secretary of Labor; “State,” “State agency,” and “State law” use the definitions in the Federal-State Extended Unemployment Compensation Act.

Title 15, §9027

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)Any State which desires to do so may enter into, and participate in, an agreement under this section with the Secretary provided that such State’s law does not provide for the payment of short-time compensation under a short-time compensation program (as defined in section 3306(v) of title 26).

(2)Any State which is a party to an agreement under this section may, upon providing 30 days’ written notice to the Secretary, terminate such agreement.

(b)(1)Any agreement under this section shall provide that the State agency of the State will make payments of short-time compensation under a plan approved by the State. Such plan shall provide that payments are made in accordance with the requirements under section 3306(v) of title 26.

(2)(A)A short-time compensation plan approved by a State shall not permit the payment of short-time compensation to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment.

(B)A short-time compensation plan approved by a State shall not provide payments to an individual if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis.

(3)Any short-time compensation plan entered into by an employer must provide that the employer will pay the State an amount equal to one-half of the amount of short-time compensation paid under such plan. Such amount shall be deposited in the State’s unemployment fund and shall not be used for purposes of calculating an employer’s contribution rate under section 3303(a)(1) of title 26.

(c)(1)There shall be paid to each State with an agreement under this section an amount equal to—

(A)one-half of the amount of short-time compensation paid to individuals by the State pursuant to such agreement; and

(B)any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary).

(2)Payments made to a State under paragraph (1) shall be payable by way of reimbursement in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.

(3)There are appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for purposes of carrying out this section.

(4)The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.

(d)An agreement entered into under this section shall apply to weeks of unemployment—

(1)beginning on or after the date on which such agreement is entered into; and

(2)ending on or before September 6, 2021.

(e)If a State has entered into an agreement under this section and subsequently enacts a State law providing for the payment of short-time compensation under a short-time compensation program that meets the definition of such a program under section 3306(v) of title 26, the State—

(1)shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such State law; and

(2)subject to section 9026(b)(2) of this title, shall be eligible to receive payments under section 9026 of this title after the effective date of such State law.

(f)In this section:

(1)The term “Secretary” means the Secretary of Labor.

(2)The terms “State”, “State agency”, and “State law” have the meanings given those terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 205 of the Federal-State Extended Unemployment Compensation Act of 1970, referred to in subsec. (f)(2), is section 205 of Pub. L. 91–373, which is set out in a note under section 3304 of Title 26, Internal Revenue Code.

Amendments

2021—Subsec. (d)(2). Pub. L. 117–2 substituted “

September 6, 2021” for “

March 14, 2021”. 2020—Subsec. (d)(2). Pub. L. 116–260 substituted “

March 14, 2021” for “

December 31, 2020”.

§9027 Temporary financing of short-time compensation agreements