The U.S. Department of Labor (DOL) Employment and Training Administration (ETA) contracted with IMPAQ International, LLC (IMPAQ) to conduct a study of employer views about the Short-Time Compensation (STC) Program. STC, also known as work-sharing or shared-work, is an alternative to layoffs for employers that preserves employees' jobs and employers' trained workforces during disruptions to a firm's regular business activity. Under STC the employer reduces the hours of work of employees in an affected unit rather than laying off some employees while others continue to work full-time. IMPAQ conducted this study to investigate the characteristics of employers and employer awareness of, participation in, and perceptions of the STC program. The study included a survey of employers in Kansas, Minnesota, Rhode Island, and Washington; site visits to state workforce agencies (SWA); an analysis of administrative data; and a comprehensive literature review.

IMPAQ surveyed 2,415 employers in the 4 states: 77 percent were STC employers (1,869) and 23 percent were non-STC employers (546). The states were strategically selected based on criteria including geographical diversity, data availability, and length of experience with STC. IMPAQ fielded the survey from May 27, 2014 to October 31, 2014. The sample generally included participating and non-participating employers registered in UI administrative records during the study period of 2008 through 2013.

Overall, STC employer respondents were very satisfied with their state's program. Many employers appreciated STC because it was instrumental in retaining highly skilled workers. In this regard, employers generally viewed STC as a win-win solution for employees and employers. In all 4 study states, more than 80 percent of STC employers said that they were either "somewhat likely" or "very likely" to use the program in the future.

However, some barriers still exist for increasing awareness and broader use of the STC program. First, familiarity with STC remains low and use historically has been confined to mainly larger employers and mostly in the manufacturing industry. Second, there appears to be some lack of awareness of the costs associated with STC use.