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February 7, 2009
Washington State employees who are involved in a temporary reduction of hours are allowed to receive a percentage of unemployment insurance benefits.
To be eligible for the state program, an employer must first develop the plan and enroll it with the Employment Security Department. At least 10 percent of the employer’s regular workforce must be affected. The reduction must reflect at least 10 percent of weekly hours but not more than 50 percent. The employer must maintain all fringe benefits. Workers may receive benefits for up to twenty-six (26) weeks and the weeks need not be consecutive. The plan can be in effect for a maximum of fifty-two (52) weeks.
Work sharing advantages:
* Saves jobs – keeps talented employees from looking elsewhere
* Reduces loss of morale experienced by those remaining after a layoff
* Avoids severance costs
* When economic outlook changes, employer is not saddled with the added cost of hiring and retraining workers
* Employee groups can be rotated so a different set of skills is available during slack times
* Since layoffs often affect minorities and women more adversely, affirmative action gains are left intact
* In union settings, the practice of “bumping” is stalled, which often causes productivity delays as workers go through an elaborate switching of jobs, shifts and supervisors. (Plans must be approved by the collective bargaining agent prior to implementation)
* If the layoff situation is permanent, there is a transition period where employees have time to search for other employment while at the same time maintaining their benefits
* It is perceived as a more equitable approach since a reduction can be made equally across the entire company
* Everyone feels the pain rather than just production workers who are the usual targets of most downsizing efforts.
Work sharing disadvantages:
* More expensive method because employer must continue to pay its share of benefits package
* Increases experience rating with the state unemployment insurance
* Increases paperwork as employer must go through an application process
For more information regarding the Shared Work Program with the Washington State Employment Security office, call (800) 752-2500 or visit www.esd.wa.gov/uibenefits/faq/shared-work.php.
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