Short-time compensation (STC) is an option within the unemployment insurance system that allows employers to reduce the hours of workers, while permitting workers to receive compensation for their partial layoff. This report examines the operations of short-time compensation programs, and is based on research conducted by Berkeley Planning Associates and Mathematica Policy Research under contract to the U.S. Department of Labor. Research activities addressed state and employer participation in STC and a range of issues related to the administration, financing, and impacts of STC programs. Conclusions from this research point to a variety of means for improving the operations of STC programs and increasing employer participation.