New York State is encouraging employers to consider its Shared Work Program as an alternative to employee layoffs. With the program, employees can receive partial Unemployment Insurance benefits while working reduced hours. Full-time, part-time and seasonal employees are eligible.
The Shared Work Program helps employers avoid some of the problems caused by a layoff. By keeping your employees during a temporary slowdown, you can ramp up quickly when business conditions improve. And you don't have to deal with the expense and added time of recruiting, hiring and training new employees. On top of that, you spare your employees the hardships of full unemployment.
As opposed to laying off employees, employers can reduce employee wages by anywhere between 20% and 60%. Then, the employee can receive unemployment benefits at a percentage that's proportionate to their percentage deduction in wages.
Here is an example of the wages and benefits an employee would receive under a 20% deduction:
| EXAMPLE OF BENEFITS UNDER SHARED WORK PROGRAM | ||
| Under Total Unemployment | Under Shared Work | |
| An employee who earns $400 per week in wages may receive | $200 unemployment benefit rate | $320 per week in wages from their employer (20% of $400 equals an $80 reduction), plus $40 in Shared Work Benefits (20% of $200) |
This totals $360 in wages and Shared Work benefits combined for each week of the plan, after an unpaid waiting week.
To take part in the Shared Work Program, employers must first complete an application through the secure UI Online Services on their Employer Information page. According to the NYS Department of Labor, applying online will provide more accurate information and a quicker response than by email.
Employers applying for the Shared Work Program should also complete:
Instructions for completing these applications can be viewed here.
The plan can cover your total workforce, a particular shift or shifts or specific departments or work units. You'll need to submit your application at least one week before the proposed effective date, but not more than four weeks before the proposed effective date.
When submitting the plan application, employers may upload the employee data from a properly formatted Microsoft Excel spreadsheet into the Shared Work Application on the Employee Information page.
After submitting the Plan Application online, you'll get an email which must be saved, so you'll have the information needed to open the second email you'll receive when your plan is approved.
The second email you'll receive when you plan is approved includes an information letter and links to all the forms needed for both you and your employees.
After a plan is approved, participating employees must file UI Shared Work claims between the Monday and Sunday of their first deduced Shared Work week. Here are their options for doing that:
Claims can be filed online or by phone in English or Spanish. (If translation services for languages other than Spanish are needed, the employee can call 518-485-6375.)
Each week that your participating employees are on Shared Work, they must claim (certify) their Shared Work benefits either online at Online Services for Individuals or by mail. New York State recommends they certify online. It is convenient, and they will receive their benefit payment faster by avoiding paper mail delays.
Both the employer and employees must certify using the same method (either paper or electronic).
Claimants who do not choose to have their benefits deposited into their personal checking accounts will be issued debit cards for their benefit payments. The cards can be used to withdraw benefits at ATMs and MasterCard affiliated banks. The cards also allow claimants to spend their benefits directly at retail Point-of-Sale locations.
The Shared Work weekly amount is the employee's weekly unemployment benefit rate multiplied by the percentage that the plan reduces their hours and wages.
You cannot hire additional employees for the work group covered by the plan. If there is a collective bargaining agreement in effect, the collective bargaining agent must agree to take part in the Shared Work plan.
Employees participate in the plan if they qualify to receive regular UI benefits in New York State. They must serve a waiting week before they receive Shared Work benefit payments. If they have already served a waiting period on an existing claim, they do not have to wait another week before collecting.
Employees covered under the plan: