Alternative to Layoffs - The Work Share Program

https://www.oregon.gov/EMPLOY/Businesses/WorkShare/Pages/Work%20Share%20...

 The Work Share Program, also known as Shared Work and Short-Time Compensation (STC) Program, established in 1983, has recently been streamlined to make it even easier for businesses to use. Funded through payroll taxes and administered by the Oregon Employment Department, Work Share is a federally supported program that gives employers an alternative to layoffs. The program provides employers with three or more employees the option of applying for part-time unemployment insurance benefits on behalf of their employees as a way of subsidizing lost wages due to a reduction in hours, often a result in economic downturn or other market changes. While the program may impact a company’s premium in a way similiar to traditional unemployment insurance claims, businesses get the benefit of retaining key employees. On the program, employees receive a portion of what they would recieve from a full unemployment insurance benefit claim, equivalent to the percentage of work-time lost. The weekly benefit amount depends on the income of the employee and the number of hours that are reduced. For example, if an employee’s hours are reduced by 20%, they would receive 20% of the unemployment insurance benefits they would have received if they had been laid off. Many businesses are eligible to participate in the program, as long as they have a minimum of three employees that will be on the Work Share plan. Program enrollment consists of submitting a short plan for how the program will be used, and a form certifying that program rules and guidelines will be followed. Program plans last for up to a year, with the possibility of a year-long extension upon re-application. As part of the newly streamlined process, enrolled businesses submit one certification that covers all employees, identifying hours worked and gross wages paid for each participating employee, compared to their normal work week. While using the program, employers continue providing health and retirement benefits under the same terms and conditions as when the affected employee worked his or her usual weekly hours.