$1 million grant to Iowa to help prevent further layoffs - KWWL - Eastern Iowa Breaking News, Weather, Closings

$1 million grant to Iowa to help prevent further layoffs

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WASHINGTON, D.C. (KWWL) - The U.S. Department of Labor says nearly $38 million dollars has been awarded to 13 states to help prevent layoffs.  More than $1 million is coming to Iowa.

The money will help short-time compensation programs expand.

$37,814,386 is being distributed in all, through new U.S. Department of Labor grants.

$1,047,671 is being awarded to Iowa.

Other states getting funding include Arkansas, California, Connecticut, Illinois, Massachusetts, Missouri, New Hampshire, New York, Pennsylvania, Rhode Island, Texas and Wisconsin.

According to a release from the Department of Labor, "Short-Time Compensation programs allow employers facing economic difficulty to reduce work hours for a group of employees as an alternative to layoffs. Programs allow workers with reduced hours to supplement their lowered wages with a percentage of the weekly unemployment compensation that would have been available to them had they been laid off entirely. STC lets employees keep their jobs – and benefits such as employer-based retirement and health insurance – and helps employers keep skilled workers and avoid the costs of hiring and training new workers when business recovers. The program also eases the strain on local economies, which acutely suffer when layoffs occur."

Grants for STC programs enhancements were first authorized by the Middle Class Tax Relief and Job Creation Act of 2012.
Since that time, a total of $50,461,663 have been awarded to 17 states.

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