§9027 Temporary Financing of Short-time Compensation Agreements

Summary

Lets a State make an agreement with the Secretary of Labor to run short-time compensation if the State does not already have a similar program under section 3306(v) of title 26. A State may leave the agreement after 30 days’ written notice. The State agency must pay benefits under a state plan that follows the rules in section 3306(v). A person cannot get more than 26 times their weekly regular benefit in a benefit year. The plan cannot pay workers who are seasonal, temporary, or intermittent. An employer in the plan must pay half of the short-time benefits; that money goes into the State unemployment fund and is not used to set the employer’s tax rate under section 3303(a)(1). The federal government will reimburse each participating State for half of the short-time benefits paid and for extra administrative costs the Secretary of Labor approves. Reimbursements are paid monthly by estimate and are adjusted later. Money is appropriated as needed, and payments run from the agreement start date through September 6, 2021. If a State later adopts its own qualifying short-time law, it stops getting payments under this agreement for weeks starting after that law takes effect and, subject to section 9026(b)(2), may be eligible for payments under section 9026. “Secretary” means the Secretary of Labor; “State,” “State agency,” and “State law” have the meanings given in the cited unemployment law.