Title: Layoff Prevention Act of 2021
Policy area: Labor and Employment

Summary:
Layoff Prevention Act of 2021
This bill extends temporary funding to reimburse states for making short-time compensation (STC) payments under existing or new STC programs for weeks of unemployment ending on or before five years and six months after enactment of this bill. (STC, also known as work sharing, is a program that provides prorated unemployment compensation to workers whose hours have been reduced in lieu of a layoff.) Under current law, this reimbursement is available for weeks of unemployment ending on or before September 6, 2021.
The bill also extends funding to support STC payments by states that do not have STC programs under state law through 2 years and 13 weeks after enactment of this bill. Under current law, this assistance applies to weeks of unemployment ending on or before September 6, 2021.
Finally, the bill increases funding to the Department of Labor for awarding grants to states to (1) implement, or improve administration of, STC programs; or (2) promote, and enroll employers in, STC programs. In addition, the bill modifies the formula used to allocate such grants. Labor may not award a grant with respect to an application submitted after December 31, 2026. Such changes are retroactive to March 27, 2020.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 242 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 242

   To provide for an extension of temporary financing of short-time 
                         compensation programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 4, 2021

   Mr. Reed introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To provide for an extension of temporary financing of short-time 
                         compensation programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Layoff Prevention Act of 2021''.

SEC. 2. EXTENSION OF TEMPORARY FINANCING OF SHORT-TIME COMPENSATION 
              PAYMENTS IN STATES WITH PROGRAMS IN LAW.

    Section 2108(b)(2) of the CARES Act (15 U.S.C. 9026(b)(2)) is 
amended by striking ``March 14, 2021'' and inserting ``the date that is 
5 years and 6 months after the date of enactment of the Layoff 
Prevention Act of 2021''.

SEC. 3. EXTENSION OF TEMPORARY FINANCING OF SHORT-TIME COMPENSATION 
              AGREEMENTS.

    Section 2109(d)(2) of the CARES Act (15 U.S.C. 9027(d)(2)) is 
amended by striking ``March 14, 2021'' and inserting ``the date that is 
2 years and 13 weeks after the date of enactment of the Layoff 
Prevention Act of 2021''.

SEC. 4. EXTENSION OF GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.

    (a) Extension; Additional Funding.--Section 2110 of the CARES Act 
(15 U.S.C. 9028) is amended--
            (1) in subsection (b)(1), by striking ``$100,000,000'' and 
        inserting ``$200,000,000'';
            (2) in subsection (c)(1), by striking ``December 31, 2023'' 
        and inserting ``December 31, 2026''; and
            (3) in subsection (g), by striking ``$100,000,000'' and 
        inserting ``$200,000,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of the CARES Act (Public 
Law 116-136).
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