What is the purpose of this resource?
Enacted into law on January 6, 1988, the WorkShare Program allows workers in an entire company, a company department, or even a small unit within the company to share reduced work hours while also collecting unemployment insurance benefits to supplement their reduced wages. The reduction of reduced hours can range between 10% and 60%. Most employers reduce to a 32 hour work week (a 20% reduction).
What benefits or services are offered by this resource to employers?
Allows employer to keep their trained, skilled staff.
Reduces future rehiring costs.
Avoids the disruption caused by layoffs.
Helps employer remain poised for future growth.
Allows employees to receive a percentage of their Unemployment Insurance benefits (UI) equal to the percentage of the reduction in hours and wages.
Who is eligible for these benefits and services?
All Massachusetts employers are eligible to apply for the WorkShare Program.
Workers eligible to receive regular UI benefits can participate in the program.
Employer must be up to date with unemployment contributions, payments in lieu of contributions, and interest or penalty charges due to the DUA. If there is a negative Reserve Balance, an employer can participate as a “Reimbursable” employer.
Employer must continue to provide the same benefits to affected employees (Health Insurance, Retirement, etc.).
Employer must have a minimum of 2 employees on a plan.
The decrease in the normal weekly hours must be shared equally by all workers in the unit or units that have been defined.
Employer must certify that the reduction in work hours is in lieu of layoffs.
Union approval is needed for employees covered by a Collective Bargaining Agreement (CBA).
Lessen the impact of a disruptive layoff!