Short-Time Compensation

By:  Michael R. Miller, FAPEO General Counsel

A disaster declaration under the Stafford Act has been declared for Florida by President Biden as a result of Hurricane Ian. Florida unemployment compensation law provides at Section 443.131(3)(a)4 that:

If an individual is separated from work as a direct result of a natural disaster declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. ss. 5121 et seq., benefits subsequently paid to the individual based on wages paid by the employer before the separation may not be charged to the employment record of the employer.

Various FAPEO members have asked whether Florida will interpret the Stafford Act declaration as being applicable to Florida’s short-time compensation program that allows for employees in affected counties to work part-time and collect unemployment compensation part-time where their jobs have been affected by the Hurricane. See the program description at: https://www.floridajobs.org/office-directory/division-of-workforce-services/reemployment-assistance-programs/short-time-compensation-program-for-employers.

Normally, if an employer implements a short-time compensation program, its unemployment rate will likely increase by 1%. Statutory authorization for this increase is found in the following language:

The maximum contribution rate that may be assigned to an employer is 5.4 percent, except employers participating in an approved short-time compensation plan may be assigned a maximum contribution rate that is 1 percent greater than the maximum contribution rate for other employers in any calendar year in which short-time compensation benefits are charged to the employer’s employment record.

In the past, PEOs have found that even allowing one client to participate in a short-time compensation program can increase the PEOs unemployment rate by 1%. FAPEO’s lobbyist, David Daniel, has been in communication with state officials to try and secure a written response that this 1% increase will not be applicable where the short-time compensation program is implemented as a result of the Hurricane and in conformity with the Stafford Act.

Governor DeSantis’ Department of Economic Opportunity (“DEO”) officials have been extremely helpful in this regard. In response to David’s inquiries, Florida’s DEO has responded to David as follows:

The Stafford Act has been activated for Hurricane Ian through FEMA Disaster Declaration No. FEMA-4673-DR-FL, which was issued on September 29, 2022. 

If an employer is participating in the short time compensation program, and their employee’s hours and earnings are reduced as a direct result of Hurricane Ian, then section 443.131(3)(a)4, Florida Statutes would apply.

DEO’s pro-business position on this issue has been of great assistance to businesses and communities that have been so devastated by Hurricane Ian and we thank DEO and the Governor for their assistance and concern.  

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