Effective October 1, 2026, enacts Article 6, “Short-Time Compensation,” to GS Chapter 96. Defines eight terms. Requires employers wishing to participate in the short-time compensation program to submit a short-time plan to the Department of Commerce’s (DOC) Division of Employment Security (Division). Lists ten required components of the application to request approval of a plan, including: identifying the affected units covered by the plan, the weekly hours of work affected and the specific percentage by which hours will be reduced; certification by the employer that the aggregate reduction in work hours is in lieu of layoffs, whether temporary or permanent; and certification by the employer that any affected collective bargaining unit agrees with the plan. Provides flexibility in the application contents where industries and modes of operation present good cause. Conditions eligibility on the employer having no outstanding employment security contributions, penalties, or interest. Requires the Division to approve or disapprove of the plan within 30 days of receipt. Allows submitting a subsequent plan after 90 days from disapproval. Provides for an approved plan's effective date being that specified on the approval notice with expiration either twelve months from that date or an earlier agreed upon date. Allows for an employer to terminate a plan at any time upon written notice and submit a new application at any time after expiration or termination. Authorizes the Division to revoke approval for good cause at any time and permits periodic review of employer operations. Defines good cause. Establishes a procedure for modifying an approved plan. Specifies that while every change to the plan must be reported in writing, only substantial changes to the plan require requests for modification.

Details eligibility for individuals to receive short-time compensation, including that with respect to the relevant week, the individual is eligible for unemployment compensation, not otherwise disqualified for unemployment compensation, and meets three criteria relating to the employer's short-time compensation plan and employee's work schedule. Establishes the weekly benefit amount to be the product of regular weekly unemployment compensation for a week of total unemployment multiplied by the percentage of reduction in the individual's usual weekly hours of work. Bars eligibility for combined short-time compensation or unemployment compensation benefits in any benefit year in an amount more than the maximum or more than 52 weeks of paid short-time compensation benefits. Makes provisions applicable to unemployment compensation applicable to short-time compensation. Provides eligibility thresholds and requirements for individuals who work for another employer during weeks covered by an approved short-time compensation plan with a short-time compensation employer.

Specifies that short-time compensation will be charged to employers' experience rating accounts in the same manner as unemployment compensation with service attributed alike. Provides for extension of benefits.

Includes a severability clause.

Effective July 1, 2026, appropriates $100,000 to the Division from the General Fund for 2026-27 to implement the act and educate employers.