Section 1452 - Criteria for approval(a) An employer wishing to participate in an STC program shall submit a Department of Labor electronic application or a signed written short-time compensation plan to the Commissioner for approval. The Commissioner may approve an STC plan only if the following criteria are met:(1) The plan identifies the specified affected units to which it applies.(2) The employees in the affected unit or units are identified by name, Social Security number, and by any other information required by the Commissioner.(3) The plan provides that if the employer provides fringe benefits, including health benefits and retirement benefits under a defined benefit plan or contributions under a defined contribution plan, to any employee whose workweek is reduced under the program, that the benefits will continue to be provided to employees participating in the short-time compensation program under the same terms and conditions as though the workweek had not been reduced. However, reductions in the benefits of short-time compensation plan participants are permitted to the extent that the reductions also apply to nonparticipant employees.(4) The usual total weekly hours of work for employees in the affected unit or units are reduced by not less than 20 percent and not more than 50 percent.(5) The plan certifies that the aggregate reduction in work hours is in lieu of layoffs of one or more workers that would have resulted in an equivalent reduction in work hours and that the Commissioner finds would have caused an equivalent dollar amount to be payable in unemployment compensation. (6) The plan certifies that the STC employer will notify the Department within 24 hours after any layoff of an employee, at which time the Commissioner shall have the right to terminate the STC plan.(7) The identified workweek reduction is applied consistently throughout the duration of the plan unless otherwise approved by the Department. (8) The plan applies to at least 10 percent of the employees in the affected unit, and when determined to be applicable by the Commissioner applies to all affected employees of the unit equally.(9) The plan shall not subsidize seasonal employers during the off-season, nor subsidize employers who have traditionally used part-time employees or intermittent employment.(10) The employer agrees to maintain records relative to the plan for a period of three years and furnish reports relating to the proper conduct of the plan and agrees to allow the Commissioner or the Commissioner's authorized representatives access to all records necessary to verify the plan prior to approval and, after approval, to monitor and evaluate application of the plan.(11) The plan certifies that the collective bargaining agent or agents for the employees, if any, have agreed to participate in the program. If there is no bargaining unit, the employer specifies how it will notify the employees in the affected group and work with them to implement the program once the plan is approved. (12) The plan describes the manner in which the requirements of this section will be implemented and where feasible how notice will be given to an employee whose workweek is to be reduced and an estimate of the number of layoffs that would have occurred absent the ability to participate in the short-time compensation program and any other information that the U.S. Secretary of Labor determines is appropriate.(13) The employer certifies that the plan is consistent with employer obligations under applicable State and federal laws.(b) In the event of any conflict between any provision of sections 1451-1460 of this subchapter, or the rules adopted pursuant to these sections, and applicable federal law, the federal law shall prevail and the provision shall be deemed invalid.Amended by 2024 , No. 85, § 230, eff. 7/1/2024.Added 1985, No. 140 (Adj. Sess.), § 1; amended 2007, No. 104 (Adj. Sess.) , § 2; 2011, No. 162 (Adj. Sess.), E. § 401.4; 2013 , No. 72, § 35b, eff. 6/30/2013.