The Shared Work Unemployment Compensation, Workshare or Job Sharing Program provides an alternative for employers faced with a reduction in workforce. It allows an employer to temporarily reduce employees’ hours and divide available work, or hours of work, among specific groups of employees in lieu of layoffs. It allows the employees to receive a portion of their unemployment benefits while working reduced hours to partially replace their lost wages.
To qualify for benefits under the Shared Work (SW) Program, employees must be regularly employed by an employer whose plan to stabilize the workforce has been approved in advance by the state administrator of the program or an authorized representative.
Workshare programs benefit businesses, workers and states. Businesses retain their trained workforce for easy recall to full-time work when economic conditions improve. Workers keep their jobs instead of being laid off.
While not fully replacing the lost wages, the unemployment benefit supplements a worker’s income until they are recalled to full-time work. States save money by paying only partial unemployment claims, instead of paying full benefits to laid-off workers.