Federal-State agreements
In general
section 3306(v) of title 26Any State which desires to do so may enter into, and participate in, an agreement under this section with the Secretary provided that such State’s law does not provide for the payment of short-time compensation under a short-time compensation program (as defined in ).
Ability to terminate
Any State which is a party to an agreement under this section may, upon providing 30 days’ written notice to the Secretary, terminate such agreement.
Provisions of Federal-State agreement
In general
section 3306(v) of title 26Any agreement under this section shall provide that the State agency of the State will make payments of short-time compensation under a plan approved by the State. Such plan shall provide that payments are made in accordance with the requirements under .
Limitations on plans
General payment limitations
A short-time compensation plan approved by a State shall not permit the payment of short-time compensation to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment.
Employer limitations
A short-time compensation plan approved by a State shall not provide payments to an individual if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis.
Employer payment of costs
section 3303(a)(1) of title 26Any short-time compensation plan entered into by an employer must provide that the employer will pay the State an amount equal to one-half of the amount of short-time compensation paid under such plan. Such amount shall be deposited in the State’s unemployment fund and shall not be used for purposes of calculating an employer’s contribution rate under .
Payments to States
In general
Terms of payments
Payments made to a State under paragraph (1) shall be payable by way of reimbursement in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
Funding
There are appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for purposes of carrying out this section.
Certifications
The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.
Applicability
Special rule
Definitions
Secretary
The term “Secretary” means the Secretary of Labor.
State; State agency; State law
26 U.S.C. 3304The terms “State”, “State agency”, and “State law” have the meanings given those terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 ( note).
Pub. L. 116–136, div. A, title II, § 2109134 Stat. 329Pub. L. 116–260, div. N, title II, § 208134 Stat. 1956Pub. L. 117–2, title IX, § 9018135 Stat. 120(, , ; , , ; , , .)
Editorial Notes
References in Text
section 205 of Pub. L. 91–373section 3304 of Title 26Section 205 of the Federal-State Extended Unemployment Compensation Act of 1970, referred to in subsec. (f)(2), is , which is set out in a note under , Internal Revenue Code.
Amendments
Pub. L. 117–22021—Subsec. (d)(2). substituted “” for “”.
Pub. L. 116–2602020—Subsec. (d)(2). substituted “” for “”.