Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Mr. REED. Mr. President, today I am introducing the Layoff Prevention Extension Act. This bill would extend the financing and grant provisions for the successful work sharing legislation I authored and worked to include in the Middle Class Tax Relief and Job Creation Act of 2012.

The concept of work sharing is simple. It helps people who are currently employed, but in danger of being laid off, to keep their jobs. By giving struggling companies the flexibility to reduce hours instead of their workforce, work sharing programs prevent layoffs and help employers save money on rehiring costs. Employees who participate in work sharing keep their jobs and receive a portion of unemployment insurance benefits to make up for lost wages.

Since becoming law, work sharing has helped save over 110,000 jobs, including 1,200 jobs in my State of Rhode Island, according to estimates from the Department of Labor. And it has saved States $225 million by reimbursing them for work sharing benefits they paid out to workers--benefits that helped keep people on the job.

Before my bill became law in 2012, only a handful of States had work sharing programs. Now, these programs enjoy broad bipartisan support and have been established in 29 States and the District of Columbia. However, the $100 million in implementation grants expired at the end of 2014, and the 100 percent Federal financing of these work sharing benefits will expire next month.

The legislation I am introducing today would extend these deadlines by 2 years so that states with existing work sharing programs, and those that are looking to enact a program, can qualify for Federal support.

I urge my colleagues to join me in supporting passage of this bill to keep American workers on the job, save taxpayers money, and provide employers with a practical, positive, and cost-effective alternative to layoffs.

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