2005 California Unemployment Insurance Code Sections 12110-12116 CHAPTER 2. PROGRAM GRANTS

12110.  In order to encourage voluntary participation by employers
in the private sector, grants shall be made to offset increases in
such employers' labor costs which are directly attributable to
participation in the leisure sharing program authorized by this
division.
12111.  The director shall identify potentially reimbursable costs,
which shall include, but need not be limited to:
   (a) Costs of additional payroll taxes, and costs of fringe
benefits that are part of the employer's regular compensation package
which by law cannot be prorated to a participating employee's
worktime reduction under this program.
   (b) Additional costs of recruitment and training that cannot
reasonably or appropriately be defrayed under another program.
   (c) Administrative costs of developing and maintaining
participation in the program not covered by the technical assistance
provided or in other ways.
   (d) Special costs such as experience rating increases consequent
on layoffs resulting from modifying or dropping participation either
by the employer or employees, or at the termination of the
experimental period.
   (e) Costs of maintaining full selected fringe benefits of
participating employees where, in the judgment of the panel
established pursuant to Section 12112, such costs would enhance the
research objectives of the program by presenting an opportunity to
study the effects of such incentives on participation in a controlled
setting, and would not be unduly costly relative to the funds
available to the program.
12112.  A procedure for applying for grants shall be developed by a
panel consisting of the Directors of the Employment Development
Department, and the Department of Industrial Relations, who shall
also make the final decision on the awarding of grants.
12113.  Applications for grants may be considered for award if the
application indicates that the employer is prepared to:
   (a) Permit a sufficient number of employees to elect a sufficient
amount of additional leave from work, provide evidence that such
employees are in fact willing and ready to reduce worktime, and that
the number of employees in the subject work force will be increased
to maintain output.  It shall also be clear that workers understand
participation is strictly voluntary and reversible under the
circumstances specified in subdivisions (b) and (c).
   (b) Outline a reasonable number of options as to manner and
duration of reducing worktime.
   (c) Specify a reasonable time period after which participating
workers may revise their options or revert to their prior status, and
in which nonparticipating workers may elect to participate.
   (d) Present a plan for proration of items of compensation of
participating workers to each worker's new worktime pattern, which
plan shall include the right of a worker to reimburse the employer
the pro rata cost for maintenance of full benefits where the employee
wishes to maintain such benefits.
12114.  The following priorities shall be considered in making grant
awards:
   (a) The application shows high potential for creating a
substantial number of permanent employment opportunities which would
not otherwise exist.
   (b) The application, when considered with other applications,
offers an opportunity to broaden the experimentation with reduced
worktime through the variety and flexibility offered to employees in
the manner and duration of reduced worktime options.
   (c) The application, when considered with other applications,
offers an opportunity to expand an understanding of the
characteristics of employees who are likely to participate.
   (d) The extent of the opportunity to study the interaction of this
program with other employment opportunity programs.
   (e) The application, when considered with other grant
applications, provides an opportunity to compare cost issues in
relatively similar settings.
   (f) The application provides an appropriate opportunity to study
the effect of incentives to participation such as those outlined in
subdivision (e) of Section 12111.
12115.  No grant applicant shall be authorized to receive
reimbursement under this chapter for a period exceeding two years.
12116.  The director shall make appropriate reimbursements to
grantees for expenses designated by Section 12111 in a timely manner
agreed upon by the grantee at the outset of the grantee's
participation in the program.