§ 27-3-802 — Participation in the short time compensation program; director approval

(a) An employer seeking to participate in the short time
compensation program shall submit a signed written short time
compensation plan in a form acceptable to the department for
approval by the director. No plan shall be approved under this
article unless the employer is in good standing with the
department.
(b) The department shall develop an application form for
an employer to request approval of a short time compensation
plan and an approval process. The director may approve a short
time compensation plan only if the plan:
(i) Describes the affected unit covered by the plan,
including the number of full-time and part-time employees in the
unit and the percentage of employees in the unit covered by the
plan;
(ii) Identifies each employee in the affected unit by
name, social security number and any other information required
by the director to identify the plan participants;
(iii) Provides a description of how employees in the
affected unit will be notified of the employer's participation
in the short time compensation plan, including how the employer
will notify those employees in a collective bargaining unit as
well as any employees in the affected unit who are not in a
collective bargaining unit. If the employer is unable to provide
advance notice to employees in the affected unit, the employer
shall explain in the application why it is not feasible to
provide the notice required under this paragraph;
(iv) Identifies the usual weekly hours of work for
the employer's employees in the affected unit and the specific
percentage by which the employees' hours shall be reduced during
all weeks covered by the plan. A short time compensation plan
shall only be approved if the percentage by which the employees'
hours will be reduced is not less than ten percent (10%) and not
more than sixty percent (60%). If the plan includes any week for
which the employer regularly provides no work then the week
shall be identified by the employer;
(v) Certifies that if the employer provides health
and retirement benefits to any employee whose usual weekly hours
of work are reduced under the short time compensation plan, 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 usual weekly hours of work of such
employee had not been reduced or to the same extent as other
employees not participating in the short time compensation
program. In addition, the following shall apply:
(A) For defined benefit retirement plans, the
hours that are reduced under the short time compensation 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;
(B) A short time compensation plan may satisfy
the certification requirement under this paragraph 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 short time
compensation program and to those employees who are
participating.
(vi) Certifies that the aggregate reduction in work
hours is in lieu of layoffs. The plan shall include an estimate
of the number of employees who would have been laid off in the
absence of the short time compensation plan;
(vii) Certifies that the employer agrees to furnish
reports to the department relating to the administration of the
plan and authorizes the department to access all records
necessary for the director to assess a short time compensation
plan for approval and to monitor and evaluate the administration
of the plan. The employer shall also agree to follow any other
directives necessary for the department to implement the plan
and which are consistent with the requirements of this article;
(viii) Certifies that the employer's participation in
the short time compensation plan and the plan's implementation
are consistent with the employer's obligations under applicable
federal and state laws;
(ix) Certifies that the plan shall expire not later
than the end of the twelfth full calendar month after the
effective date of the plan;
(x) Satisfies any other requirements specified by the
department that the United States secretary of labor determines
to be appropriate for purposes of a short time compensation
program.