Layoff Prevention Act of 2011

Layoff Prevention Act of 2011 - Amends the Internal Revenue Code to set forth requirements relating to short-time compensation programs to allow employers to reduce the workweek of their employees in lieu of layoffs.

Provides for federal financing of state short-time compensation programs. Requires the Secretary of Labor to: (1) award grants to states that enact such programs; (2) develop model legislative language for use by states in developing, enacting, and implementing such programs; and (3) report to Congress and the President on their implementation.