Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S6902-6904)
Congressional Research Service
Official summary
Version 00 · Introduced in Senate · Aug 5, 2010
Preventing Unemployment Act of 2010 - Amends the Federal Unemployment Tax Act (FUTA), the Internal Revenue Code, and the Unemployment Compensation Amendments of 1992 to prescribe requirements for the treatment and temporary financing of voluntary short-time compensation (STC) programs, under which: (1) an employer reduces the number of hours worked by employees in lieu of temporary layoffs; and (2) such employees are eligible for pro-rata unemployment compensation if their workweeks are reduced by between 10% and an appropriate state-determined percentage.
Requires payments to states meeting the requirements of this Act in an amount equal to 100% of the STC paid to individuals.
Prohibits such STC payments: (1) for more than 26 weeks; or (2) for an employee whose employer's workforce during the three months preceding submission of the employer's STC plan has been reduced by temporary layoffs of more than 20%, or on a seasonal, temporary, or intermittent basis.
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Authorizes temporary federal-state agreements for STC programs if a state does not currently provide for STC payments under an existing program.
Requires employers under an STC plan to pay the state one-half of the amount of STC paid under the plan.
Requires federal payments to states in an amount equal to: (1) one-half of the amount of STC paid to individuals by the state; and (2) any additional related administrative expenses incurred by the state.
Requires the Secretary of Labor to award one start-up grant to state agencies: (1) in states that enact STC programs on or after May 1, 2010; and (2) that apply for such grants before FY2013.
Specifies assistance and guidance the Secretary shall give states in establishing and implementing STC programs.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Aug 14, 2025. Consult Congress.gov for the current record.
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