Could “Short Time” North Carolina Workers’ Compensation Boost Jobs in State?

September 9, 2010, by Michael A. DeMayo

State officials, policymakers, employers, and workers and North Carolina workers’ compensation experts alike have bemoaned the precipitous loss of in-state jobs. Since the beginning of the “great recession” in fall of 2008 till June of this year, the state has lost over 235,000 jobs, according to official statistics. Clearly, some creative solutions may be needed to halt the bleeding of jobs and to simultaneously protect workers and business owners alike.

A novel approach of “short time” compensation may be a useful tactic in our collective arsenal to improve state working conditions. The short-time program works by using unemployment insurance money to pay employers for keeping on employees rather than firing them entirely. In other words, instead of an employer firing an employee and then the employee collecting unemployment funds – the employer would reduce the employee’s hours, and the costs would be made up by this short-time fund. Essentially, it’s a way to allow employers to preserve their workforce and to keep employees gainfully working and spending their consumer dollars. Seventeen states across the nation have adopted similar short-time compensation programs, and the Budget and Tax Center has estimated that over 25,000 North Carolina workers might benefit if a similar program took root in state.

Of course, this kind of program represents a relatively narrow approach – and for it to be maximally effective, it probably needs to be bundled together with other creative measures to stimulate the economy while simultaneously protecting the workforce. Other policy experts have recommended diverse solutions, such as:

• Improving ergonomic conditions in NC workplaces to prevent chronic injuries, such as carpal tunnel syndrome.
• Reducing at work sugar consumption to try to halt state epidemics of obesity and diabetes.
• Conducting diverse small scale pilot programs to test out novel and even counterintuitive ways to reduce employee costs and simultaneously protect workers.

If you, a family member or a coworker has experienced an occupational disease or injury, and you believe that you should be entitled to North Carolina workers’ compensation benefits, it may behoove you to speak with representative of a trusted North Carolina workers’ compensation law firm today to find out what you can do to get your claim expedited and to avoid making mistakes that could endanger your claim.

More Web Resources:

Budget and Tax Center

more on the Short Time solution