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The WorkShare program is an alternative for employers faced with a cut in workforce. Employers can divide available work between affected employees instead of laying off workers. It allows employees to receive a part of their unemployment insurance (UI) benefits while working reduced hours.
The WorkShare program helps employers to avoid the burdens of a layoff situation. It also helps employees avoid full unemployment. WorkShare also allows employers to:
WorkShare benefits are unemployment insurance benefits. Your WorkShare plan charges your employer account with any benefits paid. Since you use WorkShare instead of a full layoff, compare the benefits paid for full layoffs to those paid under WorkShare. One individual receiving 100% benefits equals roughly five individuals receiving 20% WorkShare benefits.
Things to note:
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.
The reduction percentage you outlined on your WorkShare agreement indicates your workers' weekly benefits.
Report any discrepancy in hours to the DUA WorkShare unit such as a worker working:
If the workers did not work the set number of hours for a certain week, they can supplement by using other paid leave for a part of the week to make up for it.
Upon full layoff, the worker becomes eligible for their full weekly unemployment insurance benefit amount. The maximum benefit credit of unemployment insurance benefits will be reduced by the amount of WorkShare benefits they have received. Employers must report any layoff by noon on the Friday before the layoff. This way, affected workers get their full weekly benefit amount instead of the reduced benefit amount.
The employer has to report weekly income earned by the worker from their second job for each week that the WorkShare plan is in effect. Any wages that are in excess of $222 will be deducted dollar-for-dollar from the weekly WorkShare benefit payment.
The WorkShare plan is valid for 52 weeks. You can modify or cancel your plan any time.