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HRMorning

Popularity of work-sharing plans saves many jobs

Kerry Fitzgerald
by Kerry Fitzgerald
2 minute read

Even companies facing the toughest of times may be able to keep a large percentage of workers on their payroll – instead of laying off valued employees.

That is, if your company’s able to take advantage of work-sharing programs 20 states now offer.
Rather than starting temporary or permanent layoffs, many states now allow companies to reduce certain employees’ work hours. These people are then eligible to receive a portion of regular unemployment benefits to cover the lost work hours.
Of course, there are always drawbacks. In most cases, employers must submit written work-share plans to the state. Some programs last only a limited time.
Here’s a quick look at just a few states now offering this type of program. To find more, check with your state’s unemployment office.
CALIFORNIA – This trail-blazing state, offering the first program of its kind, allows sharing for six months. You can find info here.
COLORADO – A new state work-sharing program allows participants to keep their jobs and receive unemployment benefits if their hours are significantly reduced.
Employers must submit a written work-sharing plan that falls within state guidelines. [SB 28, L 2010.]
NEW HAMPSHIRE – Employers must submit written plans and will hear back from the state within 15 days. Note that employees must continue receiving full health insurance benefits and be allowed to participate in other benefit plans based on hours worked. [SB 501, L 2009.]
NEW YORK – Here, a plan can cover the employer’s total work force, a particular shift or shifts, or a work unit or units. Applications should be submitted at least two weeks but not more than four weeks prior to the proposed effective date. More information’s available here.
RHODE ISLAND – Employees here can retain their jobs and receive up to $460 per week – while retaining their benefits and seniority. Click here for more info.
TEXAS – If employees’ work hours are reduced less than 10% or more than 40% for any week, they won’t be eligible for Shared Work benefits. Info’s here.

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