Shared Work Program

Shared work is a voluntary program providing an alternative to layoffs for employers faced with a temporary decline in business. Rather than laying off a percentage of the work force to cut costs, an employer may reduce the hours and wages of all or a particular group of employees. The employees whose hours and wages are reduced can receive partial unemployment insurance benefits to supplement their lost wages. These partial benefits are made possible through special eligibility regulations governing the Shared Work Unemployment Compensation Program.

Program Highlights - Employers & Employees
Shared Work Example
Program Advantages - Employers & Employees
Application Procedure
Program Administration
Download Application
Employers with an Existing Shared Work Plan
- File for an extension (fillable on-line)
- Download Weekly Certification Form (complete on-line and print)
- Download instructions and other forms

PROGRAM HIGHLIGHTS
Employers

The employer must have four or more full time employees participating in the plan.
The employees must have a reduction in hours and a corresponding reduction in wages of not less than 20 percent and no more than 40 percent of full time norm.
The employees fringe benefits cannot be reduced nor eliminated during the plan.
The plan must be in lieu of a layoff of an equivalent percentage of employees.
All participating employees must be identified by name and Social Security number.
The plan applies to only full time permanent employees

Employees

An employee must be able to work and available for full time work with the participating employer.
An employee must be eligible for regular unemployment compensation.
No employee may receive a combination of shared work benefits and regular unemployment compensation benefits that exceeds the legal maximum total benefits payable to the claimant during the course of his benefit year.

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EXAMPLE OF HOW THE SHARED WORK PROGRAM WORKS

A firm facing a 20 percent reduction in production might normally lay off one-fifth of its work force. Faced with this situation, a company with a shared work plan could retain its total work force on a four-day-a-week basis. This reduction from 40 hours to 32 hours would cut production by the required 20 percent without reducing the number of employees. All affected employees would receive their wages based on four days of work and, in addition, receive a portion of unemployment compensation benefits equal to 20 percent of the total weekly benefit rate that would have been payable had the employee been unemployed a full week.

Using this example, an employee who normally works 40 hours a week would have his/hers schedule reduced by 20 percent. The employee qualifies for regular unemployment compensation for that one day he/she is not at work at a weekly benefit rate of $450:

20% of $450 = $90

The employee would receive $90 from his/her unemployment benefits in addition to the 32 hours of wages earned from the employer during the week.