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Shared Work Program
Overview
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
- 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.
EXAMPLE OF HOW THE SHARED WORK
PROGRAM WORKS
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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.
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PROGRAM
ADVANTAGES
Employers
- Keep your skilled, trained
workers because the shared work program lets you:
- Retain all workers
- Maintain the continuity in your
skilled work force.
- Be prepared for business
upswings because your work force remains in place.
- Avoid the time and expense of
training new employees when business turns around.
- Foster better morale in your
employees because you avoid the insecurity, unrest, and bumping
characteristic of most layoffs.
Employees
- Retain your job and maintain
economic security.
- Avoid emotional and financial
hardships caused by a layoff.
- Retain your health insurance
and retirement benefits.
- Maintain your employment skills
and be available for advancement opportunities.
- Avoid the difficulties of
looking for a new job.
SHARED
WORK APPLICATION PROCEDURE
- An employer seeking to
participate in shared work must submit a signed written application to the
Department of Labor for approval.
- The employer must furnish the
Department of Labor with all information necessary to administer and monitor
the program effectively.
- All participating employees must
be identified by name and Social Security number.
- The employer must have paid all
contributions due for all past and current contribution periods as required
under Section 31‑225a of the Connecticut General Statutes.
- The plan applies to only full
time, permanent employees and is not implemented to subsidize seasonal
employers during any off‑season period or to subsidize employers who
traditionally have used part‑time employees.
PROGRAM ADMINISTRATION
The Department of
Labor will approve or deny a shared work plan, in writing, no later than 30
days after the date the shared work application is received by the
department.
Discrimination
based on race, color, national origin, disability, age, marital status,
sexual orientation, sex, religion, citizenship and political affiliation or
belief is prohibited in Department of Labor programs. Address inquiries to
the Equal Opportunity Office at the address below.
CONNECTICUT
DEPARTMENT OF LABOR
200 FOLLY BROOK BOULEVARD
WETHERSFIELD, CT 06109‑1114
For additional information on this program, contact the Connecticut Department of Labor at
DOL.SharedWork@ct.gov or call (860) 263-6660, Fax Number (860) 263-6681.
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200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000
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