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Congressional Research Service
Version 00 · Introduced in Senate · Mar 12, 2020
Layoff Prevention Act of 2020
This bill provides 100% of temporary federal financing of limited short-time compensation (STC) payments in states with existing or new STC programs. (STC, also known as work sharing, is a program within the federal-state unemployment system that provides pro-rated unemployment compensation to workers whose hours have been reduced in lieu of a layoff.)
Certain states without an STC program may enter into an agreement with the Department of Labor under which Labor will temporarily finance 50% of the state's STC payments. If such a state subsequently enacts a state law implementing a STC program that meets federal requirements it shall be ineligible for such 50% financing, but shall be eligible for the 100% financing. Federal financing of STC payments is limited to 260 weeks.
Showing the opening paragraphs of the official summary.
Labor must
award grants to states that enact STC programs to implement or improve administration of such programs and promote and enroll employers in STC programs;
develop and provide model legislative language for states to develop and enact STC programs, including periodically reviewing and revising such language;
provide technical assistance and guidance in developing, enacting, and implementing STC programs; and
establish certain STC reporting requirements.
People & committees
Sen. Reed, Jack [D-RI] · D–RI
Legislative record
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Read twice and referred to the Committee on Finance.
Introduced in Senate
Primary sources
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Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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