SUB plans provide compensation to employees in addition to State unemployment insurance
during periods of layoff. The typical SUB plan is financed by employer contributions
to a trust fund from which benefits are paid to employees because of involuntary separation
SUB plans generally provide payments to an employee for involuntary separation from
employment (whether or not such separation is temporary) due to
the closing of a plant or similar condition.
SUB payments include sick and accident benefits but only if such benefits are made
in conjunction with, and subordinate to, the SUB payments.
Other types of SUB payments include:
relocation allowances paid to employees who relocate to avoid involuntary separation;
compensation for loss of pay due to shorter work weeks to avoid involuntary separation.