1.This Act may be cited as the
Keep Americans Working
Act
.
2.The purpose of this Act is to keep Americans
working by strengthening and expanding short-time compensation programs that
provide employers with an alternative to layoffs.
3.Treatment of
short-time compensation programs
(a)Section 3306 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
(v)Short-Time
compensation programFor purposes of this chapter, the term
short-time compensation program means a program under
which—
(1)the participation
of an employer is voluntary;
(2)an employer
reduces the number of hours worked by employees through certifying that such
reductions are in lieu of temporary layoffs;
(3)such employees
whose workweeks have been reduced by at least 10 percent are eligible for
unemployment compensation;
(4)the amount of
unemployment compensation payable to any such employee is a pro rata portion of
the unemployment compensation which would be payable to the employee if such
employee were totally unemployed;
(5)such employees are
not expected to meet the availability for work or work search test requirements
while collecting short-time compensation benefits, but are required to be
available for their normal workweek;
(6)eligible employees
may participate in an employer-sponsored training program to enhance job skills
if such program has been approved by the State agency;
(7)beginning on the
date which is 2 years after the date of enactment of this subsection, the State
agency shall require an employer to certify that continuation of health
benefits and retirement benefits under a defined benefit pension plan (as
defined in section 3(35) of the Employee Retirement Income Security Act of
1974) is not affected by participation in the program;
(8)the State agency
shall require an employer (or an employer's association which is party to a
collective bargaining agreement) to submit a written plan describing the manner
in which the requirements of this subsection will be implemented and containing
such other information as the Secretary of Labor determines is
appropriate;
(9)in the case of
employees represented by a union, the appropriate official of the union has
agreed to the terms of the employer’s written plan and implementation is
consistent with employer obligations under the National Labor Relations Act;
and
(10)the program meets
such other requirements as the Secretary of Labor determines
appropriate.
.
(b)Assistance and
guidance in implementing programs
(1)
(A)In order to assist States in establishing, qualifying,
and implementing short-time compensation programs, as defined in section
3306(v) of the Internal Revenue Code of 1986 (as added by subsection (a)), the
Secretary of Labor (in this section referred to as the
Secretary
) shall—
(i)develop model
legislative language which may be used by States in developing and enacting
short-time compensation programs and shall periodically review and revise such
model legislative language;
(ii)provide technical
assistance and guidance in developing, enacting, and implementing such
programs;
(iii)establish
biannual reporting requirements for States, including number of averted
layoffs, number of participating companies and workers, and retention of
employees following participation; and
(iv)award start-up
grants to State agencies under subparagraph (B).
(B)
(i)The Secretary shall award start-up grants to State
agencies that apply not later than September 30, 2010, in States that enact
short-time compensation programs after the date of enactment of this Act for
the purpose of creating such programs. The amount of such grants shall be
awarded depending on the costs of implementing such programs.
(ii)In
order to receive a grant under clause (i) a State agency shall meet
requirements established by the Secretary, including any reporting requirements
under clause (iii). Each State agency shall be eligible to receive not more
than one such grant.
(iii)The
Secretary may establish reporting requirements for State agencies receiving a
grant under clause (i) in order to provide oversight of grant funds used by
States for the creation of short-time compensation programs.
(iv)There
are appropriated, out of any moneys in the Treasury not otherwise appropriated,
to the Secretary, such sums as the Secretary certifies as necessary for the
period of fiscal years 2010 and 2011 to carry out this subparagraph.
(2)The
initial model legislative language referred to in paragraph (1)(A) shall be
developed not later than 60 days after the date of enactment of this
Act.
(c)
(1)Not later than 4 years after the date of enactment of this
Act, the Secretary shall submit to Congress and to the President a report or
reports on the implementation of this section. Such report or reports shall
include—
(A)a study of
short-time compensation programs;
(B)an analysis of the
significant impediments to State enactment and creation of such programs;
and
(C)such
recommendations as the Secretary determines appropriate.
(2)After the submission of the report under paragraph (1),
the Secretary may submit such additional reports on the implementation of
short-time compensation programs as the Secretary deems appropriate.
(3)There
are appropriated, out of any moneys in the Treasury not otherwise appropriated,
to the Secretary, $1,500,000 to carry out this subsection, to remain available
without fiscal year limitation.
(d)
(1)Internal Revenue
Code of 1986
(A)Subparagraph (E)
of section 3304(a)(4) of the Internal Revenue Code of 1986 is amended to read
as follows:
(E)amounts may be
withdrawn for the payment of short-time compensation under a short-time
compensation program (as defined in section
3306(v));
.
(B)Subsection (f) of
section 3306 of the Internal Revenue Code of 1986 is amended—
(i)by
striking paragraph (5) (relating to short-term compensation) and inserting the
following new paragraph:
(5)amounts may be
withdrawn for the payment of short-time compensation under a short-time
compensation program (as defined in subsection
(v));
,
and
(ii)by
redesignating paragraph (5) (relating to self-employment assistance program) as
paragraph (6).
(2)Section 303(a)(5) of the Social Security Act is amended by
striking the payment of short-time compensation under a plan approved by
the Secretary of Labor
and inserting the payment of short-time
compensation under a short-time compensation program (as defined in section
3306(v) of the Internal Revenue Code of 1986)
.
(3)Subsections
(b) through (d) of section 401 of the Unemployment Compensation Amendments of
1992 (26 U.S.C. 3304 note) are repealed.
(e)The amendments made by this section shall take effect on the
date of enactment of this Act.
4.Temporary
financing of certain short-time compensation programs
(a)Payments to
States with certified programs
(1)Not later than 30 days after the date of enactment of
this Act, the Secretary shall establish a program under which the Secretary
shall make payments to any State unemployment trust fund to be used for the
payment of unemployment compensation if the Secretary approves an application
for certification submitted under paragraph (3) for such State to operate a
short-time compensation program (as defined in section 3306(v) of the Internal
Revenue Code of 1986 (as added by section 3(a))) which requires the maintenance
of health and retirement employee benefits as described in paragraph (7) of
such section 3306(v), notwithstanding the otherwise effective date of such
requirement.
(2)Subject to subsection (d), the payment to a State
under paragraph (1) shall be an amount equal to 100 percent of the total amount
of benefits paid to individuals by the State pursuant to the short-time
compensation program during the period—
(A)beginning on the
date a certification is issued by the Secretary with respect to such program;
and
(B)ending on
September 30, 2011.
(3)Certification
requirements
(A)Any State seeking full reimbursement under this
subsection shall submit an application for certification at such time, in such
manner, and complete with such information as the Secretary may require
(whether by regulation or otherwise), including information relating to
compliance with the requirements of paragraph (7) of such section 3306(v). The
Secretary shall, within 30 days after receiving a complete application, notify
the State agency of the State of the Secretary’s findings with respect to the
requirements of such paragraph (7).
(B)If
the Secretary finds that the short-time compensation program operated by the
State meets the requirements of such paragraph (7), the Secretary shall certify
such State's short-time compensation program thereby making such State eligible
for full reimbursement under this subsection.
(b)Timing of
application submittalsNo application under subsection (a)(3) may
be considered if submitted before the date of enactment of this Act or after
the latest date necessary (as specified by the Secretary) to ensure that all
payments under this section are made before September 30, 2011.
(c)Payments made to a State under subsection (a)(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.
(d)
(1)General payment
limitationsNo payments shall be made to a State under this
section for benefits paid to an individual by the State pursuant to a
short-time compensation program that is in excess of 26 weeks of
benefits.
(2)No payments shall be made to a State under this
section for benefits paid to an individual by the State pursuant to a
short-time compensation program if such individual is employed by an
employer—
(A)whose workforce
during the 3 months preceding the date of the submission of the employer's
short-time compensation plan has been reduced by temporary layoffs of more than
20 percent;
(B)on a seasonal,
temporary, or intermittent basis; or
(C)engaged in a labor
dispute.
(3)Program payment
limitationIn making any payments to a State under this section
pursuant to a short-time compensation program, the Secretary may limit the
frequency of employer participation in such program.
(e)Under a short-time compensation program reimbursed under
this section, a State may require short-time compensation benefits paid to an
individual to be charged to a participating employer regardless of the base
period charging rule.
(f)
(1)A participating employer under this section is required
to comply with the terms of the written plan approved by the State agency and
act in good faith to retain participating employees, and the State shall, in
the event of any violation, require such employer to repay to the State a sum
based on the amount expended by the State under the program as a result of that
violation.
(2)The Secretary shall establish an oversight and
monitoring process by regulation by which State agencies will ensure that
participating employers comply with the requirements of paragraph (1).
(3)In the case of any State which receives reimbursement
under this section, if such State determines that a violation of paragraph (1)
has occurred, the State shall transfer an appropriate amount to the United
States of the repayment the State required of the employer pursuant to such
paragraph.
(g)There
are appropriated, from time to time, out of any moneys in the Treasury not
otherwise appropriated, to the Secretary, such sums as the Secretary certifies
are necessary to carry out this section (including to reimburse any additional
administrative expenses incurred by the States in operating such short-time
compensation programs).
(h)In this section, the term State includes the
District of Columbia, the Commonwealth of Puerto Rico, and the Virgin
Islands.