Washington, D.C. – Dave Camp (R-MI), the Chairman of the House Committee on Ways and Means, today congratulated the State of Michigan on receiving approval for their short-time compensation (STC) program from the U.S. Department of Labor (DOL). This approval makes Michigan eligible for federal funds first made available under The Middle Class Tax Relief and Job Creation Act of 2012 (Public Law 112-96). Short-time compensation programs are designed to minimize unemployment by allowing States to provide partial unemployment benefits to individuals whose work hours are reduced, but who are not fully laid off.
Upon hearing of the approval of Michigan’s application, Chairman Camp said, “I am pleased that Michigan has finally received approval to implement their short-time compensation program. The goal is and continues to be keeping people earning paychecks and this program stands to benefit both workers and employers as another important tool to help prevent full-scale layoffs. I look forward to learning about the outcome of this program so it can inform policy and practice in other states and at the Federal level.”
In March 2012, Michigan enacted legislation creating an STC program, under which employers could maintain their labor force by reducing work hours during temporary slowdowns instead of laying off employees. At the urging of DOL, later in 2012 Michigan enacted further legislation designed to fully conform to the new Federal requirements under P.L. 112-96. In January 2013, Michigan applied to DOL for approval of its STC program and for newly available Federal funds. After the State failed to receive a response from DOL, Camp urged DOL to make a determination about Michigan’s application. A copy of that May 21, 2013 letter to DOL is available here. In a letter dated May 28, 2013, DOL notified Michigan that their STC program application had been approved.