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Shared Work Frequently Asked Questions

Can an employer have more than one plan?
Yes, there are no specific restrictions as to how many plans an employer can have within his/her organization as long as he/she meets the "unit" requirements.

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When will the shared work plan begin?
The Commission shall approve or deny a shared work plan no later than 30 days after the plan is received. A shared work plan is effective on the date it is approved by the Commission. The plan expires on the last day of the 12th full calendar month after the effective date of the plan. It is suggested that the employer request a starting date that will coincide with his payroll date to simplify the time keeping procedures.

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If an employer chooses shared work, must the employer use it for his/her entire business or company?
No. An employer can use shared work in one or more departments, shifts or unit. The program gives an employer the flexibility to specify the affected areas.

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If the employer's shared work plan expires but the employees are still working on a reduced work schedule, can the employees receive shared work benefits?
No. Shared work benefits are payable only while the employer's plan is in effect. However, the employees may be eligible for benefits under the regular unemployment insurance program.

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What effect will shared work benefits have on an employer's unemployment insurance tax rate?
Benefits paid through the shared work plans are charged back against the employer's account for use in computing his/her general (experience) tax rate. Thus, shared work benefits affect the employer's tax rate in the same manner and to the same extent as other chargebacks of benefits.

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Does the employer need to specify which employees will be included in the shared work program?
Yes. The employer's plan must include the names and social security numbers of all participating employees so that they can be paid.

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How are employees paid shared work benefits?
The employer completes a bi-weekly shared work continued claim list of participating employees so that they can be paid. An interested employer submits to the Commission a Shared Work Plan Application and Employee Participant List by mail or fax. If the plan is approved, workers who qualify for unemployment benefits will receive both wages and Shared Work benefits. The workers will receive the percentage of their regular benefits that matches the percentage of reduction in the employer's plan.

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Does an employee, who is participating in the shared work program serve a waiting period week?
While participating in the shared work program, an employee does not serve the waiting period week. If employees, for any reason, are no longer participants in the shared work program and they file for regular unemployment, they will have to serve the waiting period week unless they have been paid three times their weekly benefit amount while participating in the shared work program.

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Can an employer put individuals or groups back to work full-time for a week or two and then continue the plan?
Yes, putting individuals or groups back to work full-time for a week or more is even encouraged. The plan is structured such that there would be no real inconvenience in returning to it.

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Can an employer lay off some workers who were originally in the plan and still keep the remainder in the plan?
Yes, as long as requirements for an approved plan are being met.

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Can the percentages of reduced hours be different for different individuals?
Yes, as long as the reduction is between 10 to 40%, depending on the specifications of the plan.

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Can employees who normally work overtime receive shared work benefits for a reduction in their overtime hours?
No. Shared Work benefits can only be paid for wages lost because of a reduction in the employee's normal full-time hours. Normal full-time hours may not exceed forty hours.

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Can an employer use the shared work program for part-time workers?
No, only full-time employees whose hours have been reduced may participate in the program.

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Do shared work employers have to report earnings from an employee's outside part-time job?
No. A shared work employer does not have to report any wages their employees may earn from an outside part-time employment. However, once an individual files under the regular unemployment insurance program, that individual is required to report any earnings (full-time or part-time) on their claim certification.

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Unemployment Claim and Appeals Information


Last Revision: July 17, 2003