The California Unemployment Insurance Work Sharing Program offers employers the ability to reduce employees’ hours and wages as an alternative to avoid layoffs. With Work Sharing, employees who may not have otherwise been eligible for partial unemployment benefits may be able to receive some unemployment insurance benefits plus their weekly wages. The Work Sharing Program eliminates the requirement imposed on employees to seek other employment. For employers, it provides a way to reduce hours and save money on payroll expenses while still keeping employees whole.
Due to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) recently passed by the federal government, people who are eligible for unemployment benefits, including Work Sharing benefits, are also eligible for an extra $600 a week from the federal government.
The Los Angeles Times and its newsroom union were able to take advantage of this program to avoid layoffs at the paper in May 2020. Under the plan, staffers would reduce their workweek to four days and take a 20 percent pay cut until August. However, they would become eligible to collect some of their state unemployment benefits, as well as the $600 a week federal unemployment booster that Congress created as part of the CARES Act.
If your business is looking to save money on payroll, please visit the California Unemployment Insurance Work Sharing Program page or contact at Worknet Merced County at (209) 724-2100 for more information.