Vermont's Short-Time Compensation Program (STC) provides an alternative to layoff for employers that are reducing workers' hours between 20 percent and 50 percent. Workers receive the percentage of their unemployment that corresponds to the percentage of reduction in their work hours each week. By participating in STC, employers retain their skilled workforce, promote job attachment, eliminate the time and expense of recruiting and training a replacement workforce, maintain their employees' incomes and benefits, and greatly reduce the financial and psychological effects of total unemployment.
The Vermont Department of Labor must approve an employer's application before the employer can implement an STC plan. In the application, the employer must certify that:
• The employees normally work at least 30, but not more than 40 (excluding overtime) regular pay hours per week.
• The hours shown in the plan exclude ...