Sec. 3. Improvements to financing of short-time compensation
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Section 2108 of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )) is amended— in subsection (a)— in paragraph (1), by striking paragraph
(3)and inserting paragraphs (3), (4), and
(5); and by striking paragraph
(3)and inserting the following: No payments shall be made to a State under this section for short-time compensation paid to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment. Payments may be made to a State under this section for benefits paid to an individual by the State under a short-time compensation program if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis, and any reduction in such individual's hours is due to circumstances related to the coronavirus disease 2019 (COVID–19) pandemic. For purposes of making payments under this section, in the case of a State whose State law provides for the payment of short-time compensation under a short-time compensation program that meets the definition of such a program under section 3306(v) of the Internal Revenue Code of 1986— paragraph
(2)of such section 3306(v) shall be applied by inserting or the employer rehires employees or brings back employees from furlough at reduced hours after layoffs ; paragraph
(3)of such section 3306(v) shall be applied by striking 60 percent and inserting 80 percent ; and paragraph
(7)of such section 3306(v) shall be applied by inserting , or who is rehired or brought back from furlough at reduced hours under the program, after under the program . The modifications to such section 3306(v) under clauses (i), (ii), and
(iii)of subparagraph
(A)shall only apply during the period for which this section is applicable. ; by redesignating subsections (d), (e), and
(f)as subsections (e), (f), and (g), respectively; and by inserting after subsection
(c)the following: Beginning on the date of enactment of this subsection, a State receiving payments under this section may not increase experience rated State unemployment taxes, or require reimbursement for benefit costs, due to short-time compensation benefits paid on or before December 31, 2020. . section 3306 of the Internal Revenue Code of 1986 Section 2109(b)(1) of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )) is amended by inserting before the period at the end except that paragraphs (2), (3), and
(7)of such section 3306(v) shall be applied under an agreement under this section in the same manner as such paragraphs are applied under section 2108 pursuant to clauses (i), (ii), and
(iii)of paragraph (5)(A) of such section . Section 2109 of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )) is amended— in subsection (b), by striking paragraphs
(2)and
(3)and inserting the following: A short-time compensation plan approved by a State shall not permit the payment of short-time compensation to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment. Payments may be made to a State under this section for benefits paid to an individual by the State under a short-time compensation plan if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis, and any reduction in such individual's hours is due to circumstances related to the coronavirus disease 2019 (COVID–19) pandemic. ; and in subsection (c)(1)(A), by striking one-half and inserting 100 percent . The amendments made by subparagraph
(A)shall take effect as if included in the enactment of such section 2109. Section 2109 of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )) is amended— by redesignating subsection
(f)as subsection (g); and by inserting after subsection
(e)the following: Beginning on the date of enactment of this subsection, a State receiving payments under this section may not increase experience rated State unemployment taxes, or require reimbursement for benefit costs, due to short-time compensation benefits paid on or before December 31, 2020. . Title IX of the Social Security Act ( 42 U.S.C. 1101 et seq.) is amended by adding at the end the following: Not later than 30 days after the enactment of this section, the Secretary of Labor shall establish and maintain an internet-based Federal short-time compensation common application through which an employer may apply to the short-time compensation program of any State (including multiple States at the same time) that has adopted such common application. The Secretary of Labor shall establish the common application under paragraph
(1)based on the model language developed pursuant to section 2165 of the Middle Class Tax Relief and Job Creation Act of 2012. Not later than 30 days after the enactment of this section, the Secretary of Labor shall establish and maintain a publicly available internet website— through which an employer may obtain information about any short-time compensation program available in the State in which the employer operates, including a program under sections 2108 through 2110 of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act); and that provides information about and access to the Federal short-time compensation common application, as established in subsection (a). .
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