US Department of Labor awards $1.2M to help Kentucky’s workers, employers avoid layoffs when economy falters

WASHINGTON – The U.S. Department of Labor has awarded $1,253,728 to the Kentucky Education and Labor Cabinet to help the commonwealth start a Short-Time Compensation program, a unique approach to prevent worker layoffs by enabling states to pay partial unemployment benefits when an employer must reduce employees’ work hours during economic downturns.

Administered by the department’s Employment and Training Administration, the grant gives employers the flexibility to keep a talented and trained workforce and avoid the expense of recruiting, hiring and training new workers as the economy recovers and business rebounds. The grant will also support Kentucky’s efforts to inform the state’s business community about the program and its benefits.

“The Short-Time Compensation grant awarded to the Kentucky Education and Labor Cabinet helps give workers economic security while benefitting the business community,” explained Acting Assistant Secretary for Employment and Training Brent Parton. “Programs like these allows workers to keep their jobs and benefits intact if business slows and employers must cut their hours. It also lets employers retain existing employees and avoid the expense of finding, hiring and training new people to fill positions lost in a downturn.”

The Coronavirus Aid, Relief and Economic Security Act of 2020 provides up to $100 million in funding available to states to implement or improve administration of an STC program.