Short Time Compensation (STC) allows businesses to cut back on employee hours to avoid layoffs or closing while helping workers make up for some of their lost income through Unemployment Insurance (UI) benefits. This program benefits both employers and employees by providing a financial cushion and retaining skilled staff.

How STC Works

For Employers:

  • Reduce Costs: STC lets you reduce employee hours without the need for layoffs, helping save on payroll expenses.
  • Keep Your Team: Employees remain with the company, preserving their skills and reducing the need to hire and train new staff when business picks up.
  • Minimize Impact: While using STC will slightly increase your UI tax rate, it’s less costly than full layoffs and maintains a more stable workforce.

For Employees:

  • Financial Support: Employees receive UI benefits to help cover lost wages due to reduced hours.
  • Job Security: Workers continue to earn income from their job, maintain their fringe benefits, and avoid the hassle of finding a new job.

Key Details of the STC Program

  1. Plan Approval: Employers must submit and get approval for their STC plan before reducing employee hours.
  2. Plan Duration: Approved STC plans are valid for one year and start on a Sunday. The earliest you can start a new plan is the Sunday before the first contact with the Wyoming Unemployment Insurance Division.
  3. Coverage: STC can cover reductions based on up to 40 hours per week.

Eligibility Requirements for Employers

To participate in the STC program, your business must:

  • Be a legally registered business in Wyoming with an active Wyoming State Employer Account Number.
  • Affect at least two employees with a reduction in hours and wages, who must also be eligible for unemployment benefits.
  • Reduce hours and wages by 10% to 60% of regular hours (overtime hours are not eligible).
  • Maintain health and retirement benefits as before, or match the standards for non-STC employees.
  • Obtain consent from the employees’ bargaining unit and submit their legal names and Social Security numbers.
  • Inform employees in advance about the STC participation.
  • Provide estimates of layoffs avoided and necessary reports to the Wyoming Unemployment Insurance Division.

Restrictions

  • Leased, intermittent, seasonal, or temporary employees are not eligible.
  • Corporate officers or major stockholders with investments in the company cannot participate.
  • STC cannot be used as a transition to a layoff.

By using STC, businesses can effectively manage workforce reductions while supporting their employees through tough times, ensuring a smoother recovery when conditions improve.

To submit STC documents or if you have questions about STC please email us at dws-csp-uistc@wyo.gov.