GOVERNOR JUSTICE AND WORKFORCE WEST VIRGINIA ANNOUNCE SHORT-TIME COMPENSATION PROGRAM AS AN ALTERNATIVE TO LAYOFFSPublished: February 1, 2023
CHARLESTON, W.Va. — Governor Jim Justice announced today that employers facing a reduction in business activity can now apply for the Short-Time Compensation (STC) Program through WorkForce West Virginia. This new program provides an alternative to layoffs for employers experiencing a decrease in available work.
The program is open to employers seeking alternatives to layoffs during lowered economic activity. STC allows employers to reduce work hours instead of laying off some employees while others continue to work full-time. Eligible employees with reduced hours may collect a percentage of their unemployment compensation (UC) benefits to replace a portion of their lost wages.
“This program helps keep West Virginians employed while supporting both large and small businesses in a time where they may be struggling,” said Scott Adkins, Acting Commissioner of WorkForce West Virginia. “The STC program provides a prorated amount of the unemployment compensation payment that workers would have received if they were fully unemployed. Employees will also receive the same healthcare and retirement benefits they had access to before the reduction in hours.”
Businesses must have an approved plan with WorkForce West Virginia to be eligible for this program. In the event of a reduction in hours, employers must apply and be approved by WorkForce West Virginia and the STC Unit for employees to be eligible for these funds. Interested employers should register for the STC program through WorkForce West Virginia and complete the application process. As part of the application, the plan must include employee-identifying information, the normal hours worked per week, and the proposed reduction of hours per week for the employees in the affected unit. If the application is approved, the employer will receive a letter with next steps.
To be eligible for participation, employers must reduce hours by at least 10 percent but no more than 60 percent of the workweek to qualify.
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. While preventing a total layoff, STC provides significantly more UC benefits to employees compared to employees who have had their hours reduced and filed for partial unemployment compensation benefits.
For more information about WorkForce West Virginia and the Short-Time Compensation Program, visit https://uc.workforcewv.org/consumer or via email at STC@wv.gov.