S. 4303, Workforce Retention Act of 2020
Summary
S. 4303, the Workforce Retention Act of 2020, was introduced in the Senate on July 23, 2020, by Reed and referred to the Committee on Finance. It improves State short-time compensation programs. Sections 2108(b)(2) and 2109(d)(2) of the Relief for Workers Affected by Coronavirus Act are each amended by striking December 31, 2020, and inserting December 31, 2022. A study provision requires the Secretary to submit to Congress a report not later than January 1, 2025, containing the results of the study.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 116S4303Is Bills 116S4303Is
- Case
- Bills Bills 116S4303Is Bills 116S4303Is
Cite this document
“S. 4303, Workforce Retention Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s4303is-bills-116s4303is/
, SHA-256 87ceb216924dfb70b385848154dc925b772f48498e15c5b0e7b42a7bff871550.Full text
II
116TH CONGRESS
2D SESSION
S. 4303
To improve State short-time compensation programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JULY 23, 2020
Mr. REED introduced the following bill; which was read twice and referred to
the Committee on Finance
A BILL
To improve State short-time compensation programs, and
for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Workforce Retention
5 Act of 2020’’.
6 SEC. 2. EXTENSION OF TEMPORARY FINANCING OF SHORT-
7 TIME COMPENSATION PROGRAMS.
8 (a) STATES WITH PROGRAMS IN LAW.—Section
9 2108(b)(2) of the Relief for Workers Affected by
kjohnson on DSK79L0C42PROD with BILLS
10 Coronavirus Act (contained in subtitle A of title II of divi-
11 sion A of the CARES Act (Public Law 116–136)) is
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
2
1 amended by striking ‘‘December 31, 2020’’ and inserting
2 ‘‘December 31, 2022’’.
3 (b) STATES WITH SHORT-TIME COMPENSATION
4 AGREEMENTS.—Section 2109(d)(2) of the Relief for
5 Workers Affected by Coronavirus Act (contained in sub-
6 title A of title II of division A of the CARES Act (Public
7 Law 116–136)) is amended by striking ‘‘December 31,
8 2020’’ and inserting ‘‘December 31, 2022’’.
9 SEC. 3. IMPROVEMENTS TO SHORT-TIME COMPENSATION
10 PROGRAMS.
11 (a) STATES WITH PROGRAMS IN LAW.—Section
12 2108(a) of the Relief for Workers Affected by Coronavirus
13 Act (contained in subtitle A of title II of division A of
14 the CARES Act (Public Law 116–136)) is amended by
15 striking paragraph (3) and inserting the following:
16 ‘‘(3) LIMITATIONS ON PAYMENTS.—No pay-
17 ments shall be made to a State under this section
18 for short-time compensation paid to an individual by
19 the State during a benefit year in excess of 26 times
20 the amount of regular compensation (including de-
21 pendents’ allowances) under the State law payable to
22 such individual for a week of total unemployment.’’.
23 (b) STATES WITH SHORT-TIME COMPENSATION
24 AGREEMENTS.—Section 2109 of the Relief for Workers
kjohnson on DSK79L0C42PROD with BILLS
25 Affected by Coronavirus Act (contained in subtitle A of
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
3
1 title II of division A of the CARES Act (Public Law 116–
2 136)) is amended—
3 (1) in subsection (b)—
4 (A) by striking paragraph (2) and insert-
5 ing the following:
6 ‘‘(2) LIMITATIONS ON PLANS.—A short-time
7 compensation plan approved by a State shall not
8 permit the payment of short-time compensation to
9 an individual by the State during a benefit year in
10 excess of 26 times the amount of regular compensa-
11 tion (including dependents’ allowances) under the
12 State law payable to such individual for a week of
13 total unemployment.’’; and
14 (B) by striking paragraph (3); and
15 (2) in subsection (c)(1)(A), by striking ‘‘one-
16 half’’ and inserting ‘‘100 percent’’.
17 SEC. 4. ENACTMENT OF PERMANENT SHORT-TIME COM-
18 PENSATION PROGRAMS.
19 (a) REQUIREMENT.—
20 (1) IN GENERAL.—Section 3304(a) of the In-
21 ternal Revenue Code of 1986 (relating to approval
22 of State unemployment compensation laws) is
23 amended—
kjohnson on DSK79L0C42PROD with BILLS
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
4
1 (A) in paragraph (4)(E), by inserting ‘‘, as
2 required under paragraph (19)’’ after
3 ‘‘3306(v))’’;
4 (B) in paragraph (18), by striking ‘‘and’’
5 at the end;
6 (C) by redesignating paragraph (19) as
7 paragraph (20); and
8 (D) by inserting after paragraph (18) the
9 following new paragraph:
10 ‘‘(19) payment of short-time compensation is
11 made under a short-time compensation program (as
12 defined in section 3306(v)) under the State law;
13 and’’.
14 (2) CONFORMING AMENDMENT.—Section
15 303(a)(5) of the Social Security Act (42 U.S.C.
16 503(a)(5)), is amended, in the fifth proviso, by in-
17 serting ‘‘, as required under section 3304(a)(19) of
18 such Code’’ after ‘‘1986)’’.
19 (b) EFFECTIVE DATE.—The amendments made by
20 subsection (a) shall apply to weeks of unemployment be-
21 ginning on or after the earlier of—
22 (1) the date the State changes its statutes, reg-
23 ulations, or policies in order to comply with such
24 amendments; or
kjohnson on DSK79L0C42PROD with BILLS
25 (2) January 1, 2023.
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
5
1 SEC. 5. REQUIREMENTS FOR SHORT-TIME COMPENSATION
2 PROGRAMS.
3 (a) REQUIREMENT.—
4 (1) IN GENERAL.—Section 3304 of the Internal
5 Revenue Code of 1986 (relating to approval of State
6 unemployment compensation laws), as amended by
7 section 3, is amended—
8 (A) in subsection (a)—
9 (i) in paragraph (19)—
10 (I) by inserting ‘‘subject to para-
11 graph (20),’’ before ‘‘payment of
12 short-time compensation’’; and
13 (II) by striking ‘‘and’’ at the end;
14 (ii) by redesignating paragraph (20)
15 as paragraph (21); and
16 (iii) by inserting after paragraph (19)
17 the following new paragraph:
18 ‘‘(20) subject to subsection (g), with respect to
19 the short-time compensation program requirement
20 under paragraph (19), the State law—
21 ‘‘(A) does not prohibit any employer, other
22 than an employer that is delinquent in the pay-
23 ment of unemployment insurance taxes, from
24 participating in such program solely based on
kjohnson on DSK79L0C42PROD with BILLS
25 the employer’s experience rating;
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
6
1 ‘‘(B) allows any employer with four or
2 more employees to participate in such program;
3 ‘‘(C) in the case where the State has con-
4 tinued weakness in economic demand affecting
5 an employer, provides for approval of such em-
6 ployer’s short-time compensation for up to 52
7 weeks;
8 ‘‘(D) prohibits a State from relying solely
9 on an employer’s history of recent layoffs as the
10 basis for any disapproval of such employer’s
11 short-time compensation plan;
12 ‘‘(E) does not prohibit submission or con-
13 sideration of an employer’s short-time com-
14 pensation plan or any requested extension of
15 such plan less frequently than once in a 2-year
16 period;
17 ‘‘(F) requires an employer with an ap-
18 proved short-time compensation plan to certify
19 on a weekly basis the hour reduction for any
20 employees covered under such plan without re-
21 gard for earnings from an employer other than
22 the employer covered under such plan, elimi-
23 nating any requirement that such employees in-
24 dividually certify any hour reduction each week;
kjohnson on DSK79L0C42PROD with BILLS
25 and
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
7
1 ‘‘(G) requires a State to increase the max-
2 imum percentage of workweek reduction to
3 qualify for a short-time compensation program
4 from 60 percent to 80 percent; and’’; and
5 (B) by adding at the end the following new
6 subsection:
7 ‘‘(g) AUTHORITY TO SUNSET.—Any State that en-
8 acts a State law providing for the payment of short-time
9 compensation under a short-time compensation program
10 under paragraph (19) of subsection (a) may include a pro-
11 vision in such law that permits the requirements under
12 paragraph (20) of such subsection (a) to expire after De-
13 cember 31, 2027.’’.
14 (2) CONFORMING AMENDMENT.—Section
15 3306(v)(3) of the Internal Revenue Code of 1986 is
16 amended by striking ‘‘the percentage, if any, that is
17 determined by the State to be appropriate (but in no
18 case more than 60 percent),’’ and inserting ‘‘80 per-
19 cent’’.
20 (3) EFFECTIVE DATE.—The amendments made
21 by subsection (a) shall apply to weeks of unemploy-
22 ment beginning on or after the earlier of—
23 (A) the date the State changes its statutes,
24 regulations, or policies in order to comply with
kjohnson on DSK79L0C42PROD with BILLS
25 such amendments; or
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
8
1 (B) January 1, 2023.
2 (b) PERMANENT FINANCING FOR SHORT-TIME COM-
3 PENSATION PROGRAMS.—Title IX of the Social Security
4 Act (42 U.S.C. 1101 et seq.) is amended by adding at
5 the end the following:
6 ‘‘SEC. 912. PERMANENT FINANCING FOR SHORT-TIME COM-
7 PENSATION PROGRAMS.
8 ‘‘Beginning on January 1, 2023, there shall be paid
9 to each State with a State law providing for the payment
10 of short-time compensation under a permanent short-time
11 compensation program that meets the requirements for
12 such a program under section 3306(v) and paragraph (20)
13 of section 3304(a) of the Internal Revenue Code of 1986,
14 an amount equal to—
15 ‘‘(1) 100 percent of the amount of short-time
16 compensation paid to individuals by the State pursu-
17 ant to such program; and
18 ‘‘(2) any additional administrative expenses in-
19 curred by the State by reason of such program (as
20 determined by the Secretary).’’.
21 SEC. 6. STANDARD FOR TIMELINESS.
22 Not later than 90 days after the date of enactment
23 of this Act, the Secretary of Labor shall establish a stand-
24 ard for timeliness for State determinations of approval of
kjohnson on DSK79L0C42PROD with BILLS
25 short-time compensation plans under a short-time com-
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
9
1 pensation program (as defined in section 3306(v) of the
2 Internal Revenue Code of 1986).
3 SEC. 7. IMPROVED ADMINISTRATION.
4 (a) ADMINISTRATIVE IMPROVEMENTS.—Section 303
5 of the Social Security Act (42 U.S.C. 503) is amended
6 by adding at the end the following:
7 ‘‘(n) ANNUAL REPORTS ON SHORT-TIME COMPENSA-
8 TION PROGRAMS.—
9 ‘‘(1) IN GENERAL.—The State agency charged
10 with the administration of the State law shall—
11 ‘‘(A) provide an annual report to the Sec-
12 retary of Labor on short-time compensation
13 program activity within their State, including
14 information regarding—
15 ‘‘(i) the number of approved employer
16 short-time compensation plans;
17 ‘‘(ii) the size and industry of any cov-
18 ered employer;
19 ‘‘(iii) the number of employees covered
20 by any such approved plan;
21 ‘‘(iv) the number of layoffs averted as
22 a result of short-time compensation pro-
23 gram utilization; and
kjohnson on DSK79L0C42PROD with BILLS
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
10
1 ‘‘(v) the gender, race, ethnicity, and
2 age of any employee covered by any such
3 approved plan; and
4 ‘‘(B) review economic data, layoff histories,
5 and industry trends to identify any employer
6 who is at risk for future layoffs and conduct
7 targeted outreach and education on any short-
8 time compensation program offered by the
9 State.
10 ‘‘(2) ENFORCEMENT.—Whenever the Secretary
11 of Labor, after reasonable notice and opportunity for
12 hearing to the State agency charged with the admin-
13 istration of the State law, finds that there is a fail-
14 ure to comply substantially with the requirements of
15 paragraph (1), the Secretary of Labor shall notify
16 such State agency that further payments will not be
17 made to the State until the Secretary of Labor is
18 satisfied that there is no longer any such failure.
19 Until the Secretary of Labor is so satisfied, such
20 Secretary shall make no further certification to the
21 Secretary of the Treasury with respect to such
22 State.
23 ‘‘(3) FUNDING.—There are appropriated, out of
24 moneys in the Treasury not otherwise appropriated,
kjohnson on DSK79L0C42PROD with BILLS
25 to the Secretary of Labor, $20,000,000 to carry out
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
11
1 this subsection. Amounts appropriated under the
2 preceding sentence shall remain available until ex-
3 pended.’’.
4 (b) EFFECTIVE DATE.—The amendments made by
5 subsection (a) shall apply to weeks of unemployment be-
6 ginning on or after the earlier of—
7 (1) the date the State changes its statutes, reg-
8 ulations, or policies in order to comply with such
9 amendments; or
10 (2) January 1, 2023.
11 SEC. 8. GRACE PERIOD FOR FULL FINANCING OF SHORT-
12 TIME COMPENSATION PROGRAMS.
13 Section 2108(c) of the Relief for Workers Affected
14 by Coronavirus Act (contained in subtitle A of title II of
15 division A of the CARES Act (Public Law 116–136)) is
16 amended by striking ‘‘shall be eligible’’ and all that follows
17 through the end and inserting the following:
18 ‘‘shall be eligible—
19 ‘‘(1) for payments under subsection (a) for
20 weeks of unemployment beginning after the effective
21 date of such enactment; and
22 ‘‘(2) for an additional payment equal to the
23 total amount of payments for which the State is eli-
24 gible pursuant to an agreement under section 2109
kjohnson on DSK79L0C42PROD with BILLS
•S 4303 IS
VerDate Sep 11 2014 23:05 Aug 12, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
12
1 for weeks of unemployment before such effective
2 date.’’.
3 SEC. 9. DEPARTMENT OF LABOR STUDY AND REPORT ON
4 SHORT-TIME COMPENSATION PROGRAMS.
5 (a) STUDY.—The Secretary of Labor (in this section
6 referred to as the ‘‘Secretary’’) shall conduct a study on
7 State short-time compensation programs (as defined in
8 section 3306(v) of the Internal Revenue Code of 1986).
9 Such study shall include an analysis of—
10 (1) the operation and results of the short-time
11 compensation programs contained in the Relief for
12 Workers Affected by Coronavirus Act (contained in
13 subtitle A of title II of division A of the CARES Act
14 (Public Law 116–136));
15 (2) the extent to which such short-time com-
16 pensation programs averted layoffs; and
17 (3) any short-time compensation program, or
18 the equivalent, used in Organisation for Economic
19 Co-operation and Development member countries
20 during the COVID–19 pandemic, with the aim of
21 identifying improvements to the short-time com-
22 pensation programs used in the United States.
23 (b) REPORT.—Not later than January 1, 2025, the
24 Secretary shall submit to Congress a report containing the
kjohnson on DSK79L0C42PROD with BILLS
25 results of the study conducted under subsection (a), to-
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
13
1 gether with recommendations for any such legislation or
2 administrative action as the Secretary determines appro-
3 priate.
4 (c) FUNDING.—There are appropriated, out of mon-
5 eys in the Treasury not otherwise appropriated, to the
6 Secretary of Labor, $750,000 to carry out this section.
7 Amounts appropriated under the preceding sentence shall
8 remain available until expended.
9 SEC. 10. INCREASED FUNDING FOR GRANTS FOR SHORT-
10 TIME COMPENSATION PROGRAMS.
11 Section 2110(g) of the Relief for Workers Affected
12 by Coronavirus Act (contained in subtitle A of title II of
13 division A of the CARES Act (Public Law 116–136)) is
14 amended by striking ‘‘100,000,000’’ and inserting
15 ‘‘250,000,000’’.
16 SEC. 11. SHORT-TIME COMPENSATION ENROLLMENT IN-
17 CENTIVE PAYMENTS.
18 Section 903 of the Social Security Act (42 U.S.C.
19 1103) is amended by adding at the end the following:
20 ‘‘(j) SHORT-TIME COMPENSATION ENROLLMENT
21 PAYMENTS.—
22 ‘‘(1) IN GENERAL.—For each of the fiscal years
23 2021 and 2022, the Secretary of Labor shall provide
24 for the making of short-time compensation enroll-
kjohnson on DSK79L0C42PROD with BILLS
25 ment incentive payments (in this subsection referred
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
14
1 to as ‘incentive payments’) to the accounts of the
2 States in the Unemployment Trust Fund (as estab-
3 lished by section 904(a)), by transfer from amounts
4 in the Federal unemployment account (as estab-
5 lished by section 905(g)), in accordance with suc-
6 ceeding provisions of this subsection.
7 ‘‘(2) CERTIFICATION.—
8 ‘‘(A) INITIAL BENCHMARK.—The Sec-
9 retary of Labor shall certify an incentive pay-
10 ment to any State that increases the number of
11 short-time compensation claims as a percentage
12 of all unemployment insurance weekly claims of
13 such State to an average of not less than 5 per-
14 cent for a 3-month period.
15 ‘‘(B) ADDITIONAL BENCHMARKS.—The
16 Secretary may create additional benchmarks,
17 upon which to certify an incentive payment, for
18 any State that increases the number of short-
19 time compensation claims as a percentage of all
20 unemployment insurance weekly claims of such
21 State for a 3-month period.
22 ‘‘(3) FUNDING.—There are appropriated, out of
23 moneys in the Treasury not otherwise appropriated,
24 to the Federal unemployment account, $100,000,000
kjohnson on DSK79L0C42PROD with BILLS
25 to carry out this subsection. Amounts appropriated
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S4303.IS S4303
15
1 under the preceding sentence shall remain available
2 through fiscal year 2022.’’.
Æ
kjohnson on DSK79L0C42PROD with BILLS
•S 4303 IS
VerDate Sep 11 2014 03:59 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6301 E:\BILLS\S4303.IS S4303
File and source
- File
- BILLS_bills-116s4303is_bills-116s4303is.pdf
- Size
- 251,264 bytes
- SHA-256
- 87ceb216924dfb70b385848154dc925b772f48498e15c5b0e7b42a7bff871550
- Original
- www.govinfo.gov