§9027 Temporary Financing of Short-time Compensation Agreements

Summary

States can choose to make a deal with the Secretary of Labor to run a short-time compensation program if the State does not already pay such benefits under a program defined in 26 U.S.C. 3306(v). A State may end the deal with 30 days’ written notice. The State agency will pay short-time benefits under a State plan that follows the rules in 26 U.S.C. 3306(v). No worker can get more than 26 times their weekly regular pay (including dependents’ allowances) in one benefit year. Workers who are seasonal, temporary, or intermittent employees cannot get these payments. Employers in the plan must pay the State one-half of the short-time benefits paid for their workers. That money goes into the State unemployment fund and is not used to set the employer’s tax rate under section 3303(a)(1) of title 26. The federal government will reimburse each participating State for one-half of the short-time benefits the State pays and for extra administrative costs the Secretary of Labor approves. Reimbursements are paid monthly as estimates and later adjusted. Money is taken from Treasury funds as needed, and the Secretary certifies payments to the Treasury. Agreements cover weeks that start on or after the agreement date and end on or before September 6, 2021. If a State later passes its own qualifying short-time law (as defined in 26 U.S.C. 3306(v)), it cannot get payments under this deal for weeks starting after that law takes effect, but may be eligible for payments under section 9026 after that date (subject to 9026(b)(2)). Secretary = Secretary of Labor. “State,” “State agency,” and “State law” use the meanings in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).