Section 2870.1  Definitions

 

All other terms used in this Part shall have the meanings ascribed in Sections 200 through 247 and Section 502 of the Unemployment Insurance Act [820 ILCS 405], unless the context requires otherwise.

 

"Act" means the Unemployment Insurance Act [820 ILCS 405].

 

"Benefit Payment Amount" means the actual unemployment insurance benefits, including any dependent allowance provided in Section 401 of the Act, paid to an employee in the affected unit.

 

"Claimant" means a person who applies for benefits under the Act.

 

"Department" means the Illinois Department of Employment Security.

 

"DA = Dependent Allowance" means the amount of any dependent child or dependent spouse allowance which an individual may be eligible to receive under Section 401 of the Act.

 

"Director" means the Director of the Illinois Department of Employment Security.

 

"Employing unit" has the same meaning ascribed in Section 204 of the Act.

 

"Full-time work" is the number of hours a class of workers would customarily work if the employing unit had all of the work it could handle without working overtime.  Except when the contrary is provided by a collective bargaining agreement or company policy, full-time work is customarily 40 hours per week. For example, 37.5 hours per week is the normal, full-time work for Illinois State employees under gubernatorial authority by State personnel policy.

 

"NH = Normal Hours" means the normal hours employees in the affected unit work each week.  The maximum value allowed is 40 hours per week.

 

"OH = Other Hours" means the total number of hours the employee in the affected unit worked for an employing unit or units other than hours worked under the short-time compensation (STC) plan.

 

"PH = Plan Hours" means the reduced hours that employees in the affected unit will work each week during the duration of the STC plan.

 

"STC Deduction" means the percentage value calculated using the claimant's WBA (defined below) and the WBAPA (defined below).

 

"TH = Total Hours" means the total sum of plan hours (PH) and other hours (OH).

 

"WBA = Weekly Benefit Amount" means an employee in the affected unit's weekly Unemployment Insurance Benefit Amount as specified on their Finding as provided in Section 701 of the Act.

 

"WBAPA = Weekly Benefit Amount Percentage Allowed" means the percentage of the WBA that will be paid to a claimant under the STC plan.  This value cannot be less than 20% nor more than 60%.

 

"WorkShare IL" is the name of the STC program in Illinois under Section 502 of the Act.  Notwithstanding this designation, hereafter in this Part, the STC program established by Section 502 of the Act is referred to as "Short-Time Compensation" or "STC".

 

Section 2870.5  Application for Approval of Short-Time Compensation Plan

 

a)         In order to participate in the STC program, an employer must submit an STC plan application to the Department, and the Director must approve the plan.  Employers are strongly encouraged to submit the application electronically via the Department's STC e-service portal located at WorkShare.ides.illinois.gov.  Filing an application can also be accomplished by calling 217-558-8150. Assistance in filing an application is also available at that number.  The application will require the employer to provide information and make the certifications set forth in Section 502(C) of the Act.

 

b)         A third-party administrator with a proper and fully executed IDES Power of Attorney on file with the Department may file an STC plan application and conduct all STC certifications and other STC business on behalf of an employer.

 

c)         An STC plan application will not be accepted by the Department if an employer fails to affirm the certifications as required by Section 502 of Act and contained in the application.

 

d)         An electronic submission of the STC plan application must be signed using an electronic signature in lieu of a written signature by clicking the "I Agree" check box beneath the certification statements prior to submission of the STC application.  Electronic submission of the STC plan application has the same legal effect as a signature on a paper document.

 

e)         When the employer's STC plan application containing the required information and employer certifications is complete, signed, and submitted, the Director must either approve or disapprove the employer's STC plan application.  Approval of the STC plan application establishes the terms of the employer's STC plan.

 

Section 2870.10  Withdrawal of Application for Approval of Short-Time Compensation Plan

 

a)         At any point prior to the Director issuing a letter either approving or disapproving an STC plan, the employer may withdraw its application.  The notice of withdrawal of the STC application must be sent to the Department via email to DES.WorkShare@illinois.gov.

 

b)         Once an employer has withdrawn its STC application, it may file a new application for approval of an STC plan by complying with the provisions of Section 2870.5.

 

Section 2870.15  Approval or Disapproval of a Short-Time Compensation Plan

 

a)         The Director will have 45 days from the date of receipt of the STC plan application to approve or disapprove the employer's STC plan application.  The Director's decision will be in writing and promptly communicated to the employer by sending the decision approving or disapproving the plan to the employer at its address or email account of record with the Department for purposes of STC.  The Director's failure to issue a written decision within 45 days after the date of receipt of the STC plan application shall constitute a decision disapproving the plan.

 

b)         If an employer's STC plan application provides all the required information and certifications and otherwise meets the requirements of Section 502 of the Act, the Director must approve the application.

 

c)         If an employer's STC plan application fails to provide all the required information and certifications, the Director, through an authorized Department employee, will contact the employer to explain how the STC plan application is deficient and to allow the employer the opportunity to correct the deficiency or withdraw the STC plan application.

 

d)         A decision disapproving the STC plan application will clearly identify the reason or reasons for the disapproval of the plan application.  A decision disapproving an STC plan application is final.

 

e)         An employer whose STC plan application for a particular affected unit has been disapproved must wait 30 days from the date of the decision of disapproval before submitting another STC plan application for that affected unit.

 

f)         An STC plan shall not be approved if the employer is delinquent in the filing of any reports required under the Act or in the payment of contributions, payments in lieu of contributions, interest, or penalties due under this Act as of the date of the employer's STC plan application.  An employer that has appealed its delinquency is still considered to be delinquent for the purposes of this Part.

 

Section 2870.20  Effective Dates of a Short-Time Compensation Plan

 

a)         All STC plans must begin on a Sunday and must end on a Saturday.

 

b)         The decision approving the STC plan shall specify the plan's start date and expiration date.

 

c)         The expiration date of the STC plan can be no later than the last Saturday of the 12^th full calendar month after the month in which the start date of the plan occurs.

 

EXAMPLE:  Company B's STC plan is approved with a start date of Sunday, June 6, 2021.  For purposes of Company B's STC plan, June 2021 is not a full calendar month, therefore, June 2022 is the 12^th full calendar month that follows the month in which the start date of the plan occurs.  Company B's STC plan can expire no later than Saturday, June 25, 2022, which is the last Saturday in the 12^th full calendar month after the month in which the start date of the plan occurs.

 

d)         If an STC plan is revoked, the STC plan shall terminate on the date specified in the Director's written order of revocation.

 

e)         An employer may terminate a STC plan at any time upon written notice to the Director, with the plan ending on the Saturday of the week that the employer designates the plan is to terminate.  The Director shall promptly notify each member of the affected unit of the termination date of the plan.

 

f)         At any time after an STC plan for a particular affected unit has expired or terminated prior to its initially established expiration date, an employer may submit an application under the provisions of Section 2870.5 to participate in another STC plan for that affected unit.

 

Section 2870.25  Revocation of a Short-Time Compensation Plan

 

a)         At any time during the duration of an approved plan, the Director may revoke approval of the plan for good cause.

 

b)         Good cause to revoke approval of an STC plan includes the following:

 

1)         Failure of the employer to comply with the assurances given in the plan;

 

EXAMPLE 1:  In its application for approval of its STC plan, Company C provides assurances that it will continue to provide health and retirement benefits to its employees in the affected unit under the same terms and conditions it would have if the employees' usual hours of work had not been reduced.  Despite these assurances, Company C reduces health benefits to its employees in the affected unit in proportion to its reduction of their hours of work and Company C reduces the retirement benefits that it was providing to the employees in the affected unit.  Both the reduction in the health benefits and the reduction of the retirement benefits constitute a failure of the employer to comply with assurances given in the STC plan.  Either of these failures to comply with an assurance given in the plan constitutes good cause for the Director to revoke approval of the plan.

 

EXAMPLE 2:  In its application for approval of its STC plan for its sales unit, Company D provides assurances that while the STC plan is in operation, it will not hire additional full-time or part-time employees for the affected unit, and that while the STC plan is in operation, it will not transfer employees to the affected unit.  Despite these assurances, while the STC plan is in operation Company D hires one full-time employee and two part-time employees for its sales unit and transfers an employee to its sales unit who was working in its telemarketing department at the time of the transfer.  Both the hiring of the new employees and the transfer into the unit of another employee constitute a failure of the employer to comply with an assurance given in the STC plan.  Any of these failures to comply with an assurance given in the plan constitutes good cause for the Director to revoke approval of the plan.

 

2)         Termination of the approval of the STC plan by the collective bargaining representative of employees in the affected unit as set forth in Section 502(F) of the Act;

 

3)         Unreasonable revision of productivity standards for the affected unit as set forth in Section 502(F) of the Act.  An unreasonable revision of productivity standards for the affected unit is a revision that is not proportional to the percentage of work hours reduced under the approved STC plan.

 

EXAMPLE:  Company E has an approved STC plan in place for its assembly unit.  The plan calls for a 20% reduction in hours for the workers in the affected unit.  At some point after the plan has been approved, Company E announces to the workers in its assembly unit that even though their hours of work had been reduced by 20%, the employer is setting production standards at a 10% reduction from the standards that were in place before the approval of the STC plan.  In this case, with a revision of productivity standards that is not in proportion with the reduction of hours, the revision of the employer's productivity standards for the affected unit is unreasonable and shall constitute good cause for the Director to revoke approval of the STC plan.

 

4)         Conduct or occurrences tending to defeat the intent and effective operation of the short-time compensation plan as set forth in Section 502(F) of the Act.  The intent and effective operation of the short-time compensation plan are to reduce unemployment, avoid layoffs, and provide employees unemployment benefits at a reduced rate.

 

EXAMPLE:  Company F has in operation an approved STC plan for its affected warehouse unit.  The plan calls for a 25% reduction in hours for the workers in the affected unit.  The plan also calls for a temporary one-week shutdown between the Christmas and New Year holidays.  After the workers in the affected unit return to work following the one-week shutdown, Company F lays off the two workers in the unit with the least seniority.  The layoff of workers in the affected unit outside the temporary shutdown provided for in the plan defeats the intent and effective operation of the STC plan by failing to avoid layoffs, and constitutes good cause for the Director to revoke approval of the STC plan.

 

5)         Violation of any criteria on which approval of the plan was based as set forth in Section 502 of the Act and certified to by the employer in the plan application (Sec. 502(F) of the Act);

 

EXAMPLE:  Company G has in operation an approved STC plan for its affected transportation unit.  The plan calls for a 25% reduction in hours for the workers in the affected unit.  However, Company G reduces the workers' hours by 27%.  The reduction of the workers' hours by a percentage other than that stated in the plan is a violation of a criterion on which approval of the plan was based and constitutes good cause for the Director to revoke approval of the STC plan.

 

6)         The employer's failure to make timely filings of its wage reports while the plan is in operation;

 

7)         The employer's failure to make timely and full payment of contributions or payments in lieu of contributions while the plan is in operation;

 

8)         The employer's failure to provide the Department with required reports; or

 

9)         The employer's failure to allow the Director or an authorized Department employee to monitor and evaluate the plan.

 

c)         If the Director finds that good cause to revoke an STC plan exists, the Director, through an authorized Department employee, will contact the employer of the affected unit, and send it written notice informing it of the finding or findings of good cause to revoke the plan.  The employer has seven calendar days from the issuance of such notice to contact the Department, in writing, in order to address and/or correct, the finding or findings of good cause to revoke the plan.

 

d)         Upon receipt and consideration of the employer's timely written correspondence set forth in subsection (c), if any, the Director may issue a decision revoking the plan.  The decision of the Director to revoke an STC plan shall:

 

1)         be in writing;

 

2)         specify the reason or reasons for the revocation and the date the revocation is effective;

 

3)         be served upon the employer and all employees in the affected unit by sending the decision revoking the plan to the addresses or email accounts of record with the Department for purposes of STC; and

 

4)         be final.

 

Section 2870.30  Modification of a Short-Time Compensation Plan

 

a)         When an employer seeks to modify an approved STC plan, the employer must promptly submit the request to modify the plan by sending an email to the Department at DES.WorkShare@illinois.gov.  The request for modification must identify the provisions of the plan to be modified and explain why the modifications are necessary and consistent with the purposes for which the plan was approved and the certifications that the employer made in its application.  The Director or authorized Department employee may request further information from the employer before a request to modify a plan is approved.

 

EXAMPLE 1:  Company H has in operation an approved STC plan for its affected design unit.  The plan calls for a 50% reduction in hours for the workers in the affected unit.  While the STC plan is in operation, economic conditions for Company H improve.  Company H seeks to modify its plan to provide for a 20% reduction in hours for the workers in the affected unit.  This proposed change in the percentage of reduction of hours worked falls within the parameters of permitted work reduction set forth in Section 502 of the Act.  Such a proposed modification to the plan requires the employer to make a request to the Director for approval of the modification of the STC plan.

 

EXAMPLE 2:  Company J has in operation an approved STC plan for its affected packing unit.  The plan calls for a 20% reduction in hours for the workers in the affected unit.  While the STC plan is in operation, economic conditions for Company J get worse.  Company J seeks to modify its plan to provide for a 50% reduction in hours for the workers in the affected unit.  This proposed change in the percentage of reduction of hours worked falls within the parameters of permitted work reduction set forth in Section 502 of the Act.  Such a proposed modification to the plan requires the employer to make a request to the Director for approval of the modification of the STC plan.

 

EXAMPLE 3:  Company N has in operation an approved STC plan for its affected parts unit.  The plan provides for a 25% reduction in hours worked for the employees in the affected unit.  Due to a snowstorm in western states, there is a delay in the shipment of parts to Company N. Company N is informed by its supplier that the delay will last one week.  With this information, for the one week of the delay, Company N wishes to reduce the hours of work of its employees in the affected unit by 60%, but by no more than 60%.  In this situation, Company N must make a request to the Director for approval to modify the STC plan prior to the change in hours worked.

 

EXAMPLE 4:  Company K has an approved STC plan in operation for its affected factory unit.  While the plan is in operation, Company L succeeds to substantially all of the employing enterprises of Company K, which includes the factory at which all of the employees in the affected unit work.  The Director receives a request to modify the approved STC plan.  Under these circumstances, the Director will require the new employer (Company L) to submit a new application for approval of a plan instead of treating the correspondence as a request to modify an approved plan.

 

b)         The voluntary separation of an affected employee from employment with the employer does not require a modification of the plan, but this separation must be reported to the Department at DES.WorkShare@illinois.gov on or before the week the departure is effective.  A non-voluntary separation of an affected employee requires the employer to request a modification of the plan under this Section.

 

EXAMPLE 1:  Company M has in operation an approved STC plan for its affected ironwork unit.  Mr. A is a worker in the affected unit.  While the STC plan is in operation, Mr. A finds a new job and separates from Company M.  The affected unit now has one fewer worker in it than it had at the time of the STC plan approval.  Mr. A's departure from Company M does not require the employer to make a request to the Director for approval to modify the STC plan so long as the affected unit has no fewer than 2 workers, and so long as the plan proceeds in operation as it was approved.  Nonetheless, the employer shall promptly notify the Director that Mr. A is no longer a participant in the plan.

 

EXAMPLE 2:  Company M has in operation an approved STC plan for its affected ironwork unit.  Ms. B is a worker in the affected unit.  Company M discharges Ms. B from its employment, alleging that the discharge was for misconduct.  Ms. B's discharge is a non-voluntary separation of an affected employee from the affected unit and requires a modification of the plan.

 

c)         A modification of an STC plan may change the start date of a plan, may shorten the duration of a plan, but it may not extend the expiration date of the plan as it was approved.

 

d)         When an employer requests a modification of an approved plan, the Director will have 30 days from the date of receipt of the request for modification of the STC plan to approve the proposed modification in whole or in part, or to disapprove the proposed modification.  The Director's decision shall be final, and promptly communicated in writing to the employer to the address or email account of record with the Department for purposes of STC.  The Director's failure to issue a written decision within 30 days after the date of receipt of the request to modify the plan constitutes a decision disapproving the request for modification.

 

Section 2870.35  Employee's Eligibility for Short-Time Compensation Benefits

 

a)         An individual who is an employee of an affected unit under an approved STC plan is eligible to receive STC benefits with respect to any week only if that individual:

 

1)         Has filed a claim for STC unemployment insurance benefits, or has an existing claim for unemployment insurance benefits with a benefit year in effect at the time of the approved STC plan and has reopened that claim;

 

2)         Has completed a one-time certification process at WorkShare.ides@illinois.gov or by calling 217-558-8150;

 

3)         Is eligible for unemployment insurance benefits pursuant to Section 500(E) of the Act;

 

4)         Is available for all the individual's STC plan hours or is compensated for time off of work;

 

EXAMPLE 1:  Company P has an approved STC plan in operation for its affected factory unit.  The STC plan calls for a 20% reduction in hours for the workers in the affected unit.  The employer does not have paid sick leave or paid vacation leave policies.  Bob, an employee in the affected factory unit, is scheduled to work 32 hours Monday through Thursday under the approved STC plan.  Bob calls off work on Monday. Bob then works the remainder of his scheduled hours.  Since Bob did not work all his scheduled hours or receive compensation for the 8 hours he did not work on Monday, Bob is not eligible for STC benefits that week.

 

EXAMPLE 2:  Same facts as EXAMPLE 1, except the employer has paid sick leave and paid vacation leave policies.  When Bob calls off work that Monday he requests and receives 8 hours of sick leave pay.  Bob would be eligible for STC benefits that week because the 8 hours of sick leave compensation is considered hours worked.

 

EXAMPLE 3:  Company Q has an approved STC plan in operation for its affected billing unit.  The STC plan calls for a 20% reduction in hours for the workers in the affected unit.  The employer's policies provide for paid holidays.  Jennifer, an employee in the affected unit, is scheduled to work 32 hours Monday through Thursday under the approved STC plan.  Friday is a paid holiday and Jennifer receives 8 hours' holiday pay.  Since compensated hours are considered hours worked, Jennifer would not be eligible for STC benefits that week because the paid holiday puts the reduction in Jennifer's regular work hours below 20% provided for in the STC plan.

 

EXAMPLE 4:  Company R has an approved STC plan in operation for its affected shipping unit.  The STC plan calls for a 20% reduction in hours for the workers in the affected unit.  The employer's policies do not provide for paid holidays.  John, an employee in the affected unit, is scheduled to work 32 hours Monday through Thursday under the approved STC plan.  Friday is a holiday and John is not scheduled to work. John would be eligible for the STC benefits that week because the holiday does not affect the reduction in John's regular work hours below 20% provided for in the STC plan.

 

EXAMPLE 5:  Company S has an approved STC plan in operation for its affected factory unit.  The STC plan calls for a 40% reduction in hours for the workers in the affected unit.  The employer's policies provide for paid holidays.  Elizabeth, an employee in the affected factory unit, is scheduled to work 24 hours Monday through Wednesday under the approved STC plan.  Thursday is a holiday and Elizabeth is not scheduled to work but is paid 8 hours of holiday pay.  Elizabeth would be eligible for the STC benefits that week because the combination of reduced hours and holiday pay (32 hours) would amount to a 20% reduction in her regular hours and is within the parameters provided in Section 502 of the Act.  However, for that week, Elizabeth's STC benefit amount would be calculated on a 20% reduction in hours, rather than on a 40% reduction in hours (see Section 2870.40).

 

5)         Works hours during the week that fall within the reduction of hours of work provided under the STC plan; and

 

6)         Is not otherwise disqualified for unemployment insurance benefits under the Act.

 

b)         An employee in an affected unit under an approved STC plan whose usual weekly hours of work have been reduced is deemed unemployed in any week for which the employee works less than the normal weekly hours of work in accordance with an approved STC plan.

 

Section 2870.40  Short-Time Compensation Benefits' Formulas

 

a)         Consistent with the provisions of Section 401 of the Act pertaining to rounding both an individual's weekly benefit amount and any dependent allowance to the next higher dollar if calculations result in a weekly benefit amount or a dependent allowance in an amount that is not already a multiple of one dollar, the STC weekly benefit amount will be the product of:

 

1)         the percentage of reduction in the individual's usual weekly hours of work; and

 

2)         the sum of the regular weekly benefit amount for a week of total unemployment plus any applicable dependent allowance which the individual may be eligible to receive under Section 401 of the Act.

 

b)         A week for which benefits are paid under this Part will be reported as a week of STC benefits.  The formulas used to calculate an individual's STC benefit payment for a week are as follows.

 

1)         For an individual who is not eligible for any dependent allowance under Section 401 of the Act:

 

Total Hours (TH) = (PH) + (OH)

WBAPA = 1 – ((TH) ÷ (NH))

STC Deduction = (WBA) × (1 – (WBAPA))

Benefit Payment Amount = ((WBA) – (STC Deduction)) or

Benefit Payment Amount = (WBA × WBAPA)

 

EXAMPLE 1:  Bob is an employee of an affected unit under an approved STC plan, which provides for a 20% reduction in Bob's normal hours.  Bob normally works 40 hours a week.  Bob's hours were reduced to 32 when the employer's STC plan was approved effective June 6, 2021.  Bob filed a new claim for benefits.  Bob's regular unemployment weekly benefit amount is $500.  Bob worked all his scheduled hours during the week ending June 12, 2021.  Bob does not have a second job. Bob's STC benefit payment amount for the week ending June 12, 2021 is $100, using the formulas as shown below.

 

Using the formulas:

 

32 + 0 = 32 (TH)

1 – (32 / 40) = 1 – (.80) = .20 (WBAPA)

500 × (1 – .20) = 500 × .80 = 400 (STC Deduction)

500 – 400 = 100 (Benefit Payment Amount) or

500 × .20 = 100 (Benefit Payment Amount)

$100 (Benefit Payment Amount)

 

EXAMPLE 2:  Mary is an employee of an affected unit under an approved STC plan, which provides for a 20% reduction in Mary's normal hours.  Mary normally works 40 hours a week.  Mary's hours were reduced to 32 when the employer's STC plan was approved effective June 6, 2021.  Mary filed a new claim for benefits.  Mary's regular unemployment weekly benefit amount is $484.  Mary worked all scheduled hours during the week ending June 12, 2021.  Mary does not have a second job. Mary's STC benefit payment amount for the week ending June 12, 2021 is $97, using the formulas as shown below.

 

Using the formulas:

 

32 + 0 = 32 (TH)

1 – (32 / 40) = 1 – (.80) = .20 (WBAPA)

484 × (1 – .20) = 484 × .80 = 387.20 (STC Deduction)

484 – 387.20 = 96.80 (Benefit Payment Amount) or

484 × .20 = 96.80 (Benefit Payment Amount)

$97 (Benefit Payment Amount due to rounding)

 

2)         For an individual who is eligible for a dependent allowance under Section 401 of the Act:

 

Total Hours (TH) = (PH) + (OH)

WBAPA = 1 – ((TH) ÷ (NH))

STC Deduction = [(WBA) + (DA)] × (1 – (WBAPA))

Benefit Payment Amount = ([(WBA) + (DA)] – (STC Deduction)) or

Benefit Payment Amount = ([(WBA) + (DA)] × WBAPA)

 

EXAMPLE 1:  Same facts as in EXAMPLE 1 in subsection (b)(1), except Bob is eligible for $188 in dependent child allowance.  Bob's STC benefit payment amount, including dependent allowance, for the week ending June 12, 2021 is $138, using the formulas as shown below.

 

Using the formulas:

 

32 + 0 = 32 (TH)

1 – (32 / 40) = 1 – (.80) = .20 (WBAPA)

(500 + 188) × (1 – .20) = 688 × .80 = 550.40 (STC Deduction)

688 – 550.40 = 137.60 (Benefit Payment Amount) or

688 × .20 = 137.60

(Of the 137.60, 100.00 constitutes Benefit Payment Amount and 37.60 constitutes Dependent Allowance)

100 (Benefit Payment Amount due to rounding) +

38 (Dependent Allowance due to rounding) =

$138 (Benefit Payment Amount Plus Dependent Allowance)

 

EXAMPLE 2:  Same facts as in EXAMPLE 2 in subsection (b)(1), except Mary is eligible for $181 in dependent child allowance.  Mary's STC benefit payment amount, including dependent allowance, for the week ending June 12, 2021 is $134, using the formulas as shown below.

 

Using the formulas:

 

32 + 0 = 32 (TH)

1 – (32 / 40) = 1 – (.80) = .20 (WBAPA)

(484 + 181) × (1 – .20) = 665 × .80 = 532 (STC Deduction)

665 – 532 = 133 (Benefit Payment Amount) or

665 × .20 = 133

(Of the 133, 96.80 constitutes Benefit Payment Amount and 36.20 constitutes Dependent Allowance)

97 (Benefit Payment Amount due to rounding) +

37 (Dependent Allowance due to rounding) =

$134 (Benefit Payment Amount Plus Dependent Allowance)

 

c)         An individual may be eligible for STC benefits or unemployment insurance benefits, as appropriate, except that:

 

1)         no individual shall be eligible for both STC benefits and unemployment insurance benefits for the same week;

 

2)         no individual shall be eligible for combined benefits (excluding any payments attributable to a dependent allowance under Section 401 of the Act) in any benefit year in an amount more than the individual's maximum benefit amount; and

 

3)         no individual shall be paid STC benefits for more than 52 weeks under a STC plan.

 

d)         The STC benefits paid to an individual in an affected unit (excluding any payments attributable to a dependent allowance under Section 401 of the Act) will be deducted from the maximum benefit amount established for that individual in the benefit year.

 

e)         The following provisions apply to individuals who work for both a STC employer and another employer during weeks covered by the approved STC plan:

 

1)         If combined hours of work in a week for both employers do not result in a reduction of at least 20% of the usual weekly hours of work with the STC employer, the individual is not eligible for benefits.

 

EXAMPLE:  Same facts as in EXAMPLE 1 in subsection (b)(1), except Bob has a second job.  In the week ending June 12, 2021, Bob worked all regular plan hours and an additional 4 hours for the second employer.  For the week, Bob worked a total of 36 hours, consisting of 32 hours worked for the STC employer and 4 hours worked for a second employer.  In total, Bob's reduction of hours worked for the week, as compared to a normal 40 hours of work for the STC employer, is 4 hours, which is a 10% reduction in the normal hours of work for the STC employer.  Since Bob's reduction in total hours worked amounts to only 10% of the normal STC hours, Bob's short-time weekly benefit amount would be $0, as the employer's STC plan only allows for a 20% reduction.  Bob's weekly benefit amount percentage amount (WBAPA) equaling only 10% of the normal weekly hours is lower than the 20% under the STC plan (20% is also the lowest percentage of reduction of hours worked allowed for a STC plan under Section 502 of the Act).  Therefore, Bob is not eligible for STC benefits that week. See formulas below:

 

32 + 4 = 36 (TH)

1 – (36 / 40) = 1 – (.90) = .10 (WBAPA)

500 × (1 – .10) = 500 × .90 = 450 (STC Deduction)

 

2)         If combined hours of work for both employers results in a reduction equal to or greater than 20% of the usual weekly hours of work for the STC employer, the STC benefit amount payable to the individual is reduced for that week and is determined by multiplying the percentage by which the combined hours of work have been reduced by the weekly benefit amount for a week of total unemployment.

 

EXAMPLE:  Same facts as in EXAMPLE 1 in subsection (b)(1), except the employer's STC plan provides for a 50% reduction in Bob's normal hours.  Bob works his 20 plan hours and an additional 4 hours for a second employer.  Bob's weekly benefit payment amount would be $200. See formulas below.

 

20 + 4 = 24 (TH)

1 – (24 / 40) = 1 – (.60) = .40 (WBAPA)

500 × (1 – .40) = 500 × .60 = 300 (STC Deduction)

500 – 300 = 200 (Benefit Payment Amount) or

500 × .40 = 200 (Benefit Payment Amount)

 

3)         If an individual worked the reduced percentage of the usual weekly hours of work for the STC employer, is available for all usual hours of work with the STC employer, and did not work any hours for the other employer either because of the lack of work with that employer or because the individual is excused from work with the other employer, the individual is eligible for STC benefits for that week.

 

EXAMPLE:  With the same facts as in EXAMPLE 1 in subsection (b)(1), Bob's weekly benefit payment amount would be $100.

 

32 + 0 = 32 (TH)

1 – (32 / 40) = 1 – (.80) = .20 (WBAPA)

500 × (1 – .20) = 500 × .80 = 400 (STC Deduction)

500 – 400 = 100 (Benefit Payment Amount) or

500 × .20 = 100 (Benefit Payment Amount)

 

4)         An individual who is not provided any work during a week by the STC employer, or any other employer, and who is otherwise eligible for unemployment insurance, is eligible for the amount of regular unemployment insurance benefits plus any dependent allowance for which that individual may be eligible.

 

EXAMPLE:  Same facts as in EXAMPLE 1 in subsection (b)(1), except that the STC employer shut down for a week of inventory and maintenance and Bob did not work any STC plan hours, nor did Bob work for another employer.  Since the reduction in Bob's hours is more than the 60% allowed under Section 502 of the Act, Bob would not be eligible for any STC benefits.  However, Bob would be entitled to regular unemployment insurance benefits, provided he is otherwise eligible.

 

5)         An individual who is not provided any work by the STC employer during a week, but who works for another employer and is otherwise eligible may be paid unemployment insurance for that week subject to the disqualifying income and other provisions applicable to claims for regular unemployment insurance.

 

EXAMPLE:  Same facts as in EXAMPLE 1 in subsection (b)(1), except that the STC employer shut down for a week of inventory and maintenance and Bob did not work any STC plan hours. Bob did, however, work 10 hours for another employer and earned $400 in gross income in the week ending June 12, 2021.  Since the reduction in Bob's STC plan hours is more than the 60% allowed under Section 502 of the Act, Bob would not be eligible for any STC benefits.  However, Bob could be eligible for reduced regular unemployment insurance benefits under the provisions of Section 402 of the Act.

 

Section 2870.45  Overpayments of Short-Time Compensation Benefits

 

a)         Overpayments of unemployment insurance benefits under the Act may be recovered from an individual receiving STC benefits in the manner provided under Sections 900 and 901 of the Act (see Section 2835.TABLE A).

 

b)         Overpayments of benefits paid under an STC plan may be recovered from an individual receiving unemployment insurance benefits under the Act in the manner provided under Sections 900 and 901 of the Act (see Section 2835.TABLE A).

 

Section 2870.50  Coordination of Short-Time Compensation Benefits with Extended Benefits

 

a)         Any STC benefit received by an individual is considered to be "regular compensation" as the term is used under Federal-State Extended Unemployment Compensation Act of 1970 (PL 91-373; codified in note to 26 USC 3304).

 

b)         An individual who has received all of the STC or combined STC and regular unemployment insurance benefits that are available in a benefit year shall be an "exhaustee" for purposes of extended benefits under the provisions of Section 409 of the Act.

 

c)         Extended benefits paid to a participant in a STC plan are to be charged or noncharged to an employer who is subject to the payment of contributions, and attributed or non-attributed to an employer making payments in lieu of contributions, in the same manner and to the same extent as extended benefits paid to an exhaustee of regular unemployment insurance.