R.I. receiving more than $328K through layoff prevention law

RHODE ISLAND is receiving more than $328,000 this year from the U.S. Department of Labor under a layoff prevention law established by Congress through U.S. Sen. Jack F. Reed in 2012. / PBN FILE PHOTO
RHODE ISLAND is receiving more than $328,000 this year from the U.S. Department of Labor under a layoff prevention law established by Congress through U.S. Sen. Jack F. Reed in 2012. / PBN FILE PHOTO

PROVIDENCE – Rhode Island is receiving more than $328,000 this year from the U.S. Department of Labor under a layoff prevention law established by Congress in 2012 through the efforts of U.S. Sen. Jack F. Reed.
The Layoff Prevention Act also supports implementation and promotion of the state’s short-time compensation, or work sharing program, which has existed in states across the country since 2008. Since 2012, the Layoff Prevention Act has provided an estimated $500 million across the country to help states partner with businesses to prevent layoffs.
In Rhode Island, more than $6.3 million in federal reimbursements and grants have been used since that time to save about 1,270 jobs across the state, Reed’s office said in a press release.
The work sharing programs keep people on the job by giving companies that are struggling the ability to reduce hours instead of their workforce, help firms save on rehiring costs and enable workers to still collect a portion of unemployment benefits to make up for lost wages. Keeping a skilled workforce while lowering costs helps the companies stay competitive, Reed said.
“This is a proven, cost-effective program that helps ensure workers can earn a steady paycheck and allows companies to save when they’re forced to temporarily scale back,” said Reed. “Giving states an incentive to enhance and expand their work sharing programs is a smart investment in preventing future layoffs and blunting economic downturns.”
The state will continue to be reimbursed for all work sharing payments through Aug. 22 of 2015, Reed said.

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