The Short Time Compensation program helps employers retain their workforce in times of temporary slowdown by encouraging work sharing as an alternative to layoff.
The program permits prorated unemployment compensation benefits to employees whose work hours and earnings are reduced as part of a Short Time Compensation plan to avoid total layoff of some employees.
How to Apply
Download the Short Time Compensation Program application form. For more information, reference the Frequently Asked Questions.
Eligibility Requirements
- Reduced hours must be used as a temporary solution to avoid a temporary layoff.
The employer must submit a Short Time Compensation plan application to the Short Time Compensation Coordinator, Unemployment Compensation Services. - Participating employees must be full-time (at least 32 hours per week prior to Short Time Compensation reduction), permanent employees (not seasonal) and the employees must have a set number of hours (excluding overtime) that they work each week in order to participate. Employees paid piece rate, on commission, or who are hired to do certain jobs regardless of the time required are not eligible for participation.
- Short Time Compensation benefits are payable when normal hours of work are reduced from 10-40 percent. If normal work hours exceed 40, the percentage will be based on 40 hours.
- Each week that Short Time Compensation benefits are claimed, at least 10 percent of the employees from the total staff or within a particular unit must be working reduced hours. (Two employees is the minimum for a staff or unit of less than 20 employees.)
Short Time Compensation Program Goals
Goals of the Short Time Compensation program are listed below.
- Employees retained during a temporary slowdown can resume high production levels when business conditions improve and are spared the hardships of full unemployment.
- Employers avoid the expense of recruiting, hiring, and training new workers when business conditions improve.
- Employers who must permanently reduce their workforce can use the program as a transition to layoff. Affected employees may continue to work at reduced levels with an opportunity to find other employment before the expected layoff.
Program History
The Short Time Compensation program is a result of a 1983 Legislative amendment to the Unemployment Compensation Law and is provided for in Section 443.1116, Florida Statutes.