DeLauro, Reed introduce worksharing bills.

On July 6, Sen. Jack Reed (D-RI) and Rep. Rosa DeLauro (D-CT) introduced legislation, the Layoff Prevention Act of 2011, which is intended to support the development and expansion of state worksharing programs.

Worksharing is a model that allows participating businesses to reduce hours for employees that might otherwise be laid off, and provides affected workers with unemployment insurance (UI) benefits to cover lost wages. The model allows employers to retain their skilled workforce during economic downturns while ensuring that employees can continue to earn a living and upgrade critical job skills. 23 states have implemented worksharing programs, and it is estimated that more than 200,000 jobs have been preserved by these programs over the last three years.

The Layoff Prevention Act of 2011 would:

• Provide 100 percent federal financing of worksharing benefits paid by states with approved programs for up to three years;
• Provide states without approved programs with the opportunity to implement temporary programs for up to two years at 50 percent federal financing, with the option of a third year at 100 percent financing if they make their programs permanent;
• Authorize grants to states to support implementation and administration of worksharing programs, as well as grants to support promotion and enrollment efforts; and
• Require the Department of Labor to update model legislative language to help states implement worksharing programs, provide technical assistance to states, and survey states and employers to identify obstacles to implementation.

Reed and DeLauro introduced similar legislation during the 111th Congress. National Skills Coalition supports efforts to expand and strengthen worksharing programs, and we look forward to working with Congress to advance this important legislation.