Shared Work is a voluntary program that helps employers during business downturns by providing an alternative to layoff. In this time of COVID-19, many companies are looking for ways to preserve employees’ jobs during a disruption such as we have now. Employers are able to reduce work hours for an entire group of affected employees rather than laying off some which others continue to work full-time. The program provides a weekly unemployment compensation payment to the employees whose work weeks have been reduced. It also assures that these workers will be available for regular hours when business returns to normal.
If in these uncertain times, you are looking to reducing your workforce by 10% to 60%, the Shared Work Program may be just the thing that helps you to provide at least some ongoing income for your employees by providing some partial unemployment benefits for the hours your employees have lost.
Shared Work benefits can provide an employee to receive a maximum of 52 weeks of Shared Work benefits during a single benefit year.
What are the requirements for Shared Work?
Shared Work participation must be in lieu of layoffs. An employee’s hours and wages cannot be reduced by less than 10% or more than 60%. The program can be applied to part or full-time permanent employees, but cannot be used to subsidize seasonal workers during the off-season. Employers must have at least two permanent employees participating and cannot eliminate or reduce the worker’s fringe benefits. All employees must be able to work and be available for additional hours of work with the participating employer. Affected employees must certify that a written copy of the plan, or a summary, was made available to them for inspection and comment for at least 7 days.
Who can apply for Shared Work?
All Connecticut employers whose taxes or reimbursement payments are currently up to date are eligible to apply for this program. There is no limit to the size of the employer, however, an affected unit must have at least two full-time employees in order to participate. An affected unit is described as a specific plant, department, shift or other definable unit consisting of two or more employees which an approved Shared Work plan applies
How long does a Shared Work arrangement last?
Plans are effective on a Sunday and will expire six months later. While the work plan is good for six months, all approved employers can apply for an extension upon expiration of the initial plan approval. All plans are only good for one year inclusive of the extension.
How can my company apply for the Shared Work Program?
Companies must complete an application form for Shared Work and be approved by the Connecticut Department of Labor, and they will generally receive a decision within 30 days. You can obtain the application form and additional information at the CT DOL website.
We at KardasLarson are here to help you apply for this Shared Work program. We wish all of our clients a healthy and safe working environment during this difficult time.