An Act To Amend the Work-sharing Program To Conform with Federal Law
Maine Legislature, Session 126, LD 1701
Committee: Labor, Commerce, Research and Economic Development
Sponsors: PATRICK, VOLK, CUSHING, MASON, RUSSELL
Amends: 26 MRSA §1198

Legislative Document 
No. 1701 
S.P. 666 
In Senate, January 8, 2014 
An Act To Amend the Work-sharing Program To Conform with 
Federal Law 
(EMERGENCY) 
Submitted by the Department of Labor pursuant to Joint Rule 204. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator PATRICK of Oxford. 
Cosponsored by Representative VOLK of Scarborough and 
Senator: CUSHING of Penobscot, Representatives: MASON of Topsham, RUSSELL of 
Portland. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the federal Middle Class Tax Relief and Job Creation Act of 2012, Public 
Law 112-96, 126 Stat. 156 contains revised provisions for state-run, short-time 
compensation programs, also known as "work-sharing programs"; and 
Whereas, states that administer work-sharing programs must conform their statutes 
to the new federal provisions no later than August 22, 2014; and 
Whereas, the State administers a work-sharing program; and 
Whereas, lack of compliance would cause significant costs to the State and to 
employers; and 
Whereas, this legislation continues the laws governing the work-sharing program, 
which otherwise will be repealed February 28, 2014; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §1198, sub-§1, ¶I, as enacted by PL 2011, c. 91, §1 and 
affected by §3, is repealed. 
Sec. 2.  26 MRSA §1198, sub-§1, ¶M, as enacted by PL 2011, c. 91, §1 and 
affected by §3, is amended to read: 
M.  "Work-sharing plan" means a plan submitted to the commissioner by an eligible 
employer under which there is a reduction in the number of hours worked by the 
eligible employees in the affected unit in lieu of temporary layoffs of some of the 
employees. 
Sec. 3.  26 MRSA §1198, sub-§2, as enacted by PL 2011, c. 91, §1 and affected 
by §3, is amended to read: 
2.  Criteria for approval of a work-sharing plan.  An eligible employer wishing to 
participate in a work-sharing program under this section must submit a signed work-
sharing plan to the commissioner for approval. The commissioner shall approve a work-
sharing plan if the terms of the employer's written work-sharing plan and implementation 
plan described in paragraph I attest that they are consistent with employer obligations 
under applicable federal and state laws and if the following requirements are met: 
A.  The work-sharing plan identifies the affected unit or units and specifies the 
effective date of the plan; 
B.  The work-sharing plan identifies the eligible employees in the affected unit or 
units by name, social security number, usual weekly hours of work, proposed wage 
and hour reduction and any other information that the commissioner requires; 
C.  The work-sharing plan certifies that the reduction in the usual weekly hours of 
work is in lieu of temporary layoffs that would have affected at least 10% of the 
eligible employees in the affected unit or units and that would have resulted in an 
equivalent reduction in work hours; 
D.  Under the work-sharing plan the usual weekly hours of work for eligible 
employees in the affected unit or units are reduced by not less than 10% and not more 
than 50% and the reduction in hours in each affected unit is spread equally among 
eligible employees in the affected unit; 
E.  The work-sharing plan specifies the manner in which the fringe benefits of the 
eligible employees will be affected.  If the employer provides health benefits or 
retirement benefits under a defined benefit plan, the employer must continue to 
provide the benefits to employees participating in the work-sharing program as if the 
workweeks of these employees had not been reduced or to the same extent the 
benefits are provided to other employees not participating in the work-sharing 
program; 
F.  In the case of eligible employees represented by a collective bargaining agent, the 
work-sharing plan is approved in writing by the collective bargaining agent that 
covers the affected eligible employees. In the absence of a collective bargaining 
agent, the work-sharing plan must contain a certification by the eligible employer that 
the proposed plan, or a summary of the plan, has been made available to each eligible 
employee in the affected unit; 
G.  A statement that the work-sharing plan will not serve as a subsidy of seasonal 
employment during the off-season or of intermittent employment is included; and 
H.  The eligible employer agrees to furnish reports relating to the proper conduct of 
the work-sharing plan and agrees to allow the commissioner or the commissioner's 
designee or authorized representatives access to all records necessary to verify the 
plan prior to approval and to monitor and evaluate application of the plan after 
approval.; 
I.  The work-sharing plan specifies the manner in which the requirements of this 
subsection will be implemented including a plan for giving notice, when feasible, to 
an employee whose workweek is to be reduced together with an estimate of the 
number of layoffs that would have occurred absent the ability of employees to 
participate in the work-sharing and such other information as the United States 
Secretary of Labor determines is appropriate; and 
J.  The eligible employer allows eligible employees to participate, as appropriate, in 
training, including employer-sponsored training or worker training funded under the 
federal Workforce Investment Act of 1998, Public Law 105-220, 112 Stat. 936, to 
enhance job skills if such training has been approved by the commissioner. 
Sec. 4.  26 MRSA §1198, sub-§12, as enacted by PL 2011, c. 91, §1 and affected 
by §3, is repealed. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill changes the law regarding work-sharing programs to bring it into conformity 
with federal provisions that govern short-time compensation programs. The federal 
Middle Class Tax Relief and Job Creation Act of 2012 requires states that currently 
administer a work-sharing program to conform their laws to the new federal provisions 
no later than August 22, 2014 or risk a loss of unemployment tax credits. Changes 
include ensuring continuing health or retirement benefits for participating employees to 
the same extent the benefits are provided to those employees not participating in the 
work-sharing program; providing details in the employer's application process about the 
number of layoffs averted and the employee notification process that will be used; and 
ensuring that work-sharing employees may participate in training to enhance their job 
skills while participating in the work-sharing program.