Short-Time Compensation for Individuals
Launching in January 2023, The Short-Time Compensation (STC) Program is an alternative to layoffs for employers experiencing a reduction in available work. The STC Program serves a dual purpose of preserving employees’ jobs and an employer’s trained workforce. STC cushions the adverse effect of a reduction in business activity on workers by averting layoffs. The program also ensures that impacted workers will be available to resume prior employment levels when business demand increases.
Businesses must have an approved plan with WorkForce WV to be eligible for this program. In the event of a reduction in hours, employers must apply and be approved by WorkForce WV for employees to participate in this program.
Employers must reduce hours by at least 10 percent but no more than 60 percent of the workweek to qualify for this program. While receiving UC benefits under an STC plan, employees are not required to meet availability or work search requirements. However, they are required to be available for their standard workweek. Also, eligible employees must serve a mandatory unpaid “waiting week.”
The STC Program provides a prorated amount of the UC payment individuals would have received if they were fully unemployed. The STC application process must be initiated by the employer.
If an employee working 40 hours per week has their hours reduced by 20 percent (or one 8-hour day) versus a complete layoff, they will receive an adjusted unemployment payment. In this scenario, if the same employee is laid off and determined eligible for UC, with a weekly benefit of $270, through the STC Program, that employee could work 32 hours per week and receive a UC payment for the remaining 8 hours, resulting in a $54 payment plus their regular hourly wage from their employer.
Employee Application Steps
Eligible employees will be contacted with information about the program by employers who have qualified to be part of the STC Program.
To complete the initial claim, log in and enter your credentials and follow the prompts provided.
Login to complete the weekly certification.
- In order to be eligible for the STC program, you must work for a qualifying employer.
- If your employer is not a participant in the STC program, you will receive an error message to contact your employer.
- For more information, contact WorkForce WV at email@example.com or 304-558-2657.
Short-Time Compensation FAQ
How are my health and retirement benefits affected by my employer’s participation in in the STC program?
If your employer provides you will health and retirement benefits under a defined benefit plan or contributions under a defined contribution plan, the employer must continue to provide you with those benefits, under the same terms and conditions as though the hours of work had not been reduced or provide you with the same benefits as other employees not participating in STC.
How much will my UC benefit payments be under the STC plan?
You will receive the percentage of your weekly benefit allowance (WBA) equal to the percentage of your reduction in hours per week. For example, if your WBA is $400 and the employer reduces your hours by 20 percent under the STC plan, you would receive 20 percent of $400 or $80. NOTE: The amount you actually receive may be less due to deductions for recoupment of overpayments, tax withholding, or child support intercepts.
Under an STC plan, am I required to serve an unpaid waiting week?
Yes, you must serve a waiting week before receiving STC benefits, unless a waiting week has already been served on an existing claim.
I currently have a UC claim in which the benefit year has not yet expired. Do I have to apply for another UC claim under STC?
No, you do not have to apply for another claim, because your current claim will be reactivated.
How long can I be paid STC benefits?
No more than 26 weeks under an STC plan.
If I normally work overtime, can I receive STC benefits for a reduction in my overtime?
No. STC benefits can only be paid to compensate for wages lost because of a reduction in your normal work schedule of no more than 40 hours per week.
Can I work for another employer while participating in my employerâs STC plan?
Yes, you may work for another employer while participating in your employerâs STC plan. However, you will need to report hours and gross earnings from any other employer on your weekly certifications, as this income will be deducted from your STC benefits.
Must I actively seek work or accept other work while participating in STC?
No. However, to be eligible for STC benefits, you must be available for your normal weekly hours of work with your STC employer.