Questions about the WorkShare Program

Frequently asked questions about WorkShare, a program by the Department of Unemployment Assistance designed to help you retain talent.

Instead of losing skilled employees, you can reduce hours while WorkShare helps cover a portion of lost wages. This means you avoid the costs of recruiting and training new staff when business picks up again. Plus, your employees keep their health insurance and benefits, giving them stability while you maintain a strong workforce.

What is WorkShare?

WorkShare is a program that helps employers reduce payroll costs during temporary economic downturns by offering an alternative to layoffs. Instead of cutting jobs, employers can reduce employee hours across a company, department, or unit. Employees with reduced hours can receive partial unemployment insurance (UI) benefits to supplement lost wages.

Is my business/company eligible?

Most Massachusetts employers—including corporations, small businesses, nonprofits, and government entities—can participate if they meet these requirements:

• Up-to-date unemployment contributions
• A positive reserve balance
• Filed wage reports

Eligible employees must be permanent full-time or part-time workers; seasonal and temporary employees are not eligible.

Your WorkShare plan must:

• Reduce hours by 10%–60%
• Include at least two employees
• Last no more than 52-weeks
• Maintain health and retirement benefits

If employees are part of a union, the union must approve the WorkShare plan.

How does WorkShare work?

For your company:

Participating in a WorkShare Plan allows you to reduce your employee’s hours by 20% (a four-day work week) instead of laying off 20% of your workforce.

• A WorkShare plan is valid for 52 weeks and can be modified or canceled anytime.
• Employers can have multiple plans at once, but employees can only be on one plan.
• Only permanent full-time or part-time employees are eligible—seasonal and temporary workers do not qualify.
• Under WorkShare, employers reduce workers’ hours and pay, with unemployment benefits helping to offset lost wages.

For your employees:

• Earn a percentage of their regular salary (e.g., 80% of hours worked = 80% of pay).
• Receive unemployment benefits based on reduced hours and past earnings.
• May qualify for a partial dependency allowance ($25 per dependent child).
• Keep their health insurance and benefits.
• Have most second-job earnings disregarded before deductions.

How do I apply for WorkShare?

Visit the how-to apply page for detailed instructions. 

Learn how to apply 

What are my responsibilities once my WorkShare plan is approved?

As an employer, you must:

• Maintain participating employees' health insurance and retirement benefits
• Submit quarterly contribution and wage detail reports
• Pay unemployment taxes on time
• Notify the Department of Unemployment Assistance (DUA) of any changes to your WorkShare plan

How do I complete the weekly certification requirement on behalf of my employees?

You can find this information at the bottom of the how-to apply for WorkShare page. 

Does WorkShare impact my unemployment insurance contributions?

• If your UI account has a positive reserve, WorkShare benefits are charged like regular UI benefits.
• If your organization is a reimbursing employer (nonprofits/government entities), you will be billed dollar-for-dollarfor benefits paid.
• If benefits are improperly paid due to misleading or incorrect information, your company must repay those funds.

Will WorkShare affect my experience rating?

Like regular unemployment insurance benefits, WorkShare benefits are deducted from your reserve balance on your annual experience rate notice. The amount of your WorkShare benefits determines your experience rating. DUA specialists can help you understand how these benefits impact your contribution rate.

How are WorkShare benefits charged to my employer account?

• Standard UI Employers: Benefits are charged similarly to regular unemployment benefits if your account has a positive reserve.
• Reimbursing Employers: Nonprofits and government entities pay dollar-for-dollar for WorkShare benefits.
• Repayment Obligation: If benefits are paid due to inaccurate or misleading information, you must repay them.

Can I modify or cancel my WorkShare plan?

Yes. Employers can discontinue an approved WorkShare plan at any time. The DUA can also revoke a plan for good cause, including:

• Failure to comply with plan assurances
• Unreasonable changes to productivity standards
• Actions that undermine the program’s purpose
• Violating the criteria on which the plan was approved

For more details, contact the DUA WorkShare Department.

What happens if a WorkShare participant is fully laid off?

If an employee in the WorkShare program is fully laid off, they become eligible for their full weekly unemployment insurance (UI) benefit amount. However, the maximum benefit credit for UI benefits will be reduced by the amount of WorkShare benefits they have already received.

When and how should I report layoffs?

Employers must report any planned layoffs by noon on the Friday before the layoff. This ensures that affected workers receive their full weekly UI benefit amount, rather than a reduced benefit.