2015 Code of Virginia
Title 60.2 - Unemployment Compensation
§ 60.2-701. (For contingent expiration dates -- see notes) Ineligible employers; application to participate in short-time compensation program

A. An employer shall be ineligible to participate in the Program if:

1. The employer has negative unemployment experience;

2. The employer is assigned, for the year in which the employer applies to participate in the Program or the preceding year, the maximum experience rating tax rate of 6.2 percent determined pursuant to § 60.2-531;

3. The employer is assigned the tax rate for an employer newly subject to this title as provided in subsection B of § 60.2-526; or

4. The employer reduced its workforce in the affected unit by not less than 20 percent during the six months preceding the date the employer applies to participate in the Program.

B. An employer that is not ineligible to participate in the Program and that wishes to participate in the Program shall submit to the Commission a signed, written short-time compensation plan for approval. The Commission shall develop an application form to request approval of a plan and an approval process. The application shall include:

1. The affected unit or units covered by the plan, including the number of full-time or part-time workers in such unit; the percentage of workers in the affected unit covered by the plan; identification of each individual employee in the affected unit by name, social security number, and the employer's unemployment tax account number and any other information required by the Commission to identify plan participants.

2. A description of how workers in the affected unit will be notified of the employer's participation in the plan if such application is approved, including how the employer will notify those workers in a collective bargaining unit as well as any workers in the affected unit who are not in a collective bargaining unit. If the employer will not provide advance notice to workers in the affected unit, the employer shall explain in a statement in the application why it is not feasible to provide such notice.

3. A requirement that the employer identify the usual weekly hours of work for employees in the affected unit and the specific percentage by which their hours will be reduced during all weeks covered by the plan. An application shall specify the percentage of reduction for which a short-time compensation application may be approved, which shall be not less than 10 percent and not more than 60 percent. If the plan includes any week for which the employer regularly provides no work due to a holiday or other plant closing, then such week shall be identified in the application.

4. Certification by the employer that, if the employer provides health benefits and retirement benefits to any employee whose usual weekly hours of work are reduced under the Program, such benefits will continue to be provided to employees participating in the Program under the same terms and conditions as though the usual weekly hours of work of such employee had not been reduced or to the same extent as other employees not participating in the Program. For defined benefit retirement plans, the hours that are reduced under the plan shall be credited for purposes of participation, vesting, and accrual of benefits as though the usual weekly hours of work had not been reduced. The dollar amount of employer contributions to a defined contribution plan that are based on a percentage of compensation may be less due to the reduction in the employee's compensation. However, an application may contain the required certification when a reduction in health and retirement benefits scheduled to occur during the duration of the plan will be applicable equally to employees who are not participating in the Program and to those employees who are participating.

5. Certification by the employer that the aggregate reduction in work hours is in lieu of layoffs, whether temporary or permanent layoffs or both. The application shall include an estimate of the number of workers who would have been laid off in the absence of the plan.

6. Agreement by the employer to (i) furnish reports to the Commission relating to the proper conduct of the plan; (ii) allow the Commission access to all records necessary to approve or disapprove the plan application and, after approval of a plan, monitor and evaluate the plan; and (iii) follow any other directives the Commission deems necessary for the agency to implement the plan and that are consistent with the requirements for plan applications.

7. Certification by the employer that participation in the plan and its implementation is consistent with the employer's obligations under applicable federal and state laws.

8. The effective date and duration of the plan, which shall expire not later than the end of the sixth full calendar month after the effective date.

9. Any other provision added to the application by the Commission that the U.S. Secretary of Labor determines to be appropriate for purposes of a Program.

10. Information requested by the Commission regarding whether the short-time compensation plan is intended to be a transition to permanent layoffs; however, such information shall be used by the Commission for informational purposes only and shall not serve as the basis for disapproving a short-time compensation plan.

2014, c. 818.