Hi everyone, this is Dr. Nitin Chhoda with Ignition Time.
And in this video, I'm going
to answer a very important question.
What if your employer is starting
to reopen and calling you
back to work part time?
Are you still eligible
for unemployment benefits?
The short answer to this question is yes.
There is a certain program called a work
sharing program that will make you
eligible for some unemployment benefits if
you are called back to work
for a limited number of hours.
Now, the information I'm about to give
you is not applicable to all states.
And this is a federal guideline
that you may or may not know.
In fact, your employer should
probably be aware of this.
And if your employer is not aware of it,
you should actually share this video
with your employer and ask them to check
out the link in the description
section below.
So the Department of Labor basically
announced to employers,
are you reopening your business?
You will actually see the tweet
from the Department of Labor
on your screen right now.
Are you reopening your business
and bringing workers back part time?
Contact your state unemployment office
to learn about unemployment benefits
available to individuals
whose hours have been reduced.
So I'll actually give you a document
which will provide you with a link
to that document in the
description section below.
And this is going to be a very valuable
document, not only for you,
if you're called back to work for a limited
number of hours in certain states,
let me be clear in certain states and I'll
provide you with the link
to the department,
to the unemployment agency and all
of those states or your you or your
employer can go to those states
to seek for the information.
But more importantly,
this is the important part.
If you're called back for a limited number
of hours, you could be eligible
for unemployment benefits.
So let's dig into this.
This is all the short term compensation
the STC also known as a work sharing
or shared work program.
And according to the Department of Labor,
this is an alternative to layoffs
for employers experiencing
a reduction in available work.
So here's what the Department
of Labor is trying to do.
If your employer doesn't have too many
hours to give you, the Department of Labor
does not want the employer to let you go.
Let's be clear.
They do not want
the employer to let you go.
This is a good thing.
So in this case,
what happens is if the employer brings you
back for a limited number of hours
and again, this is in specific states,
then this is an alternative to a layoff as
far as the Department
of Labor is concerned.
And so STC program,
the short term compensation program
preserves employees jobs and employers
trained workforces during times of lowered
economic activity.
STC allows employers to reduce hours of work
for employees rather than laying off some
employees, while others
continue to work full time.
So this is this is a good thing in states
that implement this program and for
employers who implement this program.
Now, let me be clear.
Let me be clear.
Currently, 27 states have the STC program
established as per their local laws and
established as per federal guidelines.
And 26 states have operational programs.
Now, these states are Arizona, Arkansas,
California, Colorado, Connecticut,
Florida, Iowa, Kansas, Maine,
Maryland, Massachusetts, Michigan,
Minnesota, Missouri, Nebraska,
New Hampshire, New Jersey, New York, Ohio,
Oregon, Pennsylvania, Rhode Island,
Texas, Vermont, Washington and Wisconsin.
These are the states that actually
have the program operational.
And those employees experiencing
a reduction in hours are allowed
to collect a percentage
of the unemployment compensation,
U.S. state benefits to replace
a portion of their lost wages.
SDC cushions the adverse effect
of the reduction in business activity
on workers by averting layoffs.
So this is, again,
a measure to avoid a complete to avoid you
losing your job and you
being let go from your job.
And it ensures that these workers will be
available to resume prior employment
levels while business demand increases.
So the idea is if your business,
your employer doesn't have hours,
they cut down your hours and you get a
percentage of your lost wages from state.
Now, by the way,
this is not going to compensate your
entire lost revenue,
but it's going to be something.
So let's be clear about that,
because the state is going to use
a formula to calculate benefits.
And also you need to be below a certain
number of hours in terms of the hours that
you have to qualify for those benefits.
What are the exact
qualification requirements?
They depend on the state.
They also depend on your employer because
your employer has to essentially
apply and be a part of the program.
So, again, let's just keep that in mind.
But this is an option and it's a good
option for individuals in these states.
This is the eligibility
or this is the eligibility criteria.
In order to receive benefits under the
program, employers must have an approved
SDC plan in place with the appropriate
state workforce agencies.
So let's just say you in the state
of New Jersey, for example,
the employer needs to have an approved
SDC program with the state of New Jersey.
So what you can do if you're watching is.
Video, you can actually talk to your
employer if you're in one of these 27
states and you can say, hey,
can you make sure that you become
a part of the CDC program?
So let the employer do that, because,
you know, it's as far as the employer is
concerned,
the money that comes to you
from unemployment, you know,
it's something that you should
you should be getting.
So hopefully your employer is willing
to cooperate with you to become
a part of the program.
Now, if your employer is already a part
of the program, that's fantastic in all
you have to do is now, you know,
make sure that you get the SDC.
So in order to receive benefits,
employers need to have an approved plan in
place with the appropriate state agency.
The CDC application process
is initiated by the employer.
This is important.
It's initiated by the employer,
not employees.
Now, this is important as an employee,
when you apply for state unemployment
insurance, you contact the state
agency you initiated as an employee.
But the program has to be
initiated by employers.
So the employer has to initiate the
program and then the state will
start paying the employees.
This is very important.
So the best thing you can do is to after
you watch this video,
talk to your employer if you're
in one of these states and say, hey,
have you are you
participating in the program?
Can you participate in the program?
And then your employer has to contact
the state agency and take
the necessary steps.
Every state agency has its own guidelines
about the specific applications process.
So your employer will need to apply.
Therefore, in order for employees
with reduced hours to potentially be
eligible for the employer,
must submit an application
to the appropriate state agency
and the state must approve
the employer's application or plan.
That is the way this works.
In order to qualify for D.C., employees
must first be determined to be eligible
for unemployment compensation.
So if you are eligible for unemployment
benefits, then you will qualify
for money through the SDC.
So that is the short term
compensation program.
While receiving unemployment benefits
through the program,
employees are not required.
This is important are not required
to meet availability for work search
requirements, which, by the way,
that I work search requirements
for the Lost Wages Assistance Program
and for traditional state unemployment.
So once this public health emergency
crisis is over,
it'll, you know, things will go back to,
quote unquote, a normal world where
unemployment insurance and unemployment
benefits will be subject to work search
requirements, because that's
the way the program was intended.
That's what that's how it
was meant to be structured.
But the the this program,
the program employees are not required,
let me be clear,
not required to meet availability for work
search requirements, but they are required
to be available for their
normal work week.
So you will be required to be available
for your normal work week in case you
employers are they you know,
I hire you at six hours a week and now I
want you at 40 hours a week,
so you need to be available.
That's very important.
Also also, employees who are eligible
to participate in an employer's stock
program may be required to have
a mandatory waiting period,
which is a non paid week.
In other words,
if you become a part of the program,
you may not get paid initially for the,
you know, through the program.
Keep in mind, any benefits received under
federal or state unemployment
compensation are taxable.
So if you receive money,
you will receive a form ten ninety nine
from the state where the claim was filed
showing the amount paid
in any federal income taxes.
You know that that may be withheld.
So just keep that in mind.
Also, the amount of unemployment
compensation paid to individuals filing
for SDC is a pro-rated portion of the U.S.
payment they would have received
if they were totally unemployed.
So let me give you an example.
And again, this is an example
from the Department of Labor.
Let's say an employee works normally works
a 40 hour work week,
and let's say their employer,
the employee's work is reduced by eight
hours, is reduced by eight hours,
or 20 percent of the employee has been
laid off and totally unemployed
and determined to be eligible
for unemployment compensation.
The individual would normally have
received a weekly benefit amount
of two hundred and seventy dollars.
Now the employer submits an SDC,
an SDC plan, and the plan is approved.
OK, we're going to assume
that this is an example.
This is just an example.
Everybody, your situation
is going to be different.
This is just an example.
Under the plan, the employee would receive
fifty four dollars of benefits,
which is 20 percent of two hundred
and seventy dollars, in addition to the 32
hours of wages earned from the employer.
Now, again, the number of hours you need
to work and how that ties into SDC will be
determined by the state
and by your employer.
But hopefully this gives you a guideline.
I do believe that every state has
a guideline in terms of how many hours you
need to work in order to be able to be
eligible for SDC, because in the past
work work in the past,
the CDC guidelines required that
there would be a significant
amount of hours cut.
Right now, it seems based on this document
that that is going to vary by state.
So you will have to you.
Let me be specific.
Your employer will have to talk to your
state about the specific
guidelines, but hopefully.
This gives you an idea of back
to hopefully having some compensation,
it's not a lot, it's clearly not a lot,
but hopefully this gives you a path
to having some compensation if you're
in one of the 27 states that I
mentioned at the start of the video.
And if your employees are part of the SDC
program, they have an approved SDC short
term, a short time
compensation application.
I meant to say a short time,
I'm sorry if I said short term
at the start of the video.
I've been reading fast and I've been
trying to get through
a lot of information.
So it's short time compensation.
OK, short term compensation.
Once again, let me give you
the twenty seven states specifically.
Twenty six states have operational
programs Arizona, Arkansas, California,
Colorado, Connecticut, Florida, Iowa,
Kansas, Maine, Maryland,
Massachusetts, Michigan,
Minnesota, Missouri, Nebraska,
New Hampshire, New Jersey, New York, Ohio,
Oregon, Pennsylvania, Rhode Island,
Texas, Vermont, Washington and Wisconsin.
This is the short time compensation
program, not the short
term compensation program.
I realize that as I've
been making this video.
Thank you so much for watching, everybody.
My name is Dr.
Nitin Chhoda.
If you don't know anything about me,
please check out my introductory
video on our channel.
As you know, have the fortune,
the privilege, the honor
of living the American dream.
I'm a beneficiary of the greatness of this
country and I do believe this country is
great, despite what some of us may
be feeling at this point in time.
I will help you live your American dream
if you give me the opportunity to please,
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I really appreciate you watching.
I hope this was helpful.
If you are not in one of the twenty six
states that share this video with someone
who is in one of those states so that they
can talk to their employer about
a short time compensation program.
Thank you so much for watching, everyone.
I look forward to seeing you
in the next video of Ignition Time.
Take care.
Bye.
Yes.
