NEW YORK STATE DEPARTMENT OF LABOR

Shared Work ProgramEmployee/Claimant Presentation

Shared Work Program

• Voluntary program – initiated by the employer as an alternative to layoffs

• Employer may reduce hours of full time employees by 20 to 60%

• Employees will receive partial UI benefits equal to the percent of reduction

Advantages of Shared Work Plan

• During periods of temporary slow down the employer can reduce hours worked without laying employees off

• Allows employees to retain their fringe benefits while participating in the Shared Work program.

• Employees do not have to look for work• Employees in Shared Work can earn more than $405

in a week and still receive partial benefits

Features

• Claimants can receive up to 20 weeks of Shared Work benefits

• There may be eligibility for additional weeks depending on Federal Extended Benefits legislation.

Requirements

• Claimant must be a full time employee who normally works between 35 and 40 hours per week

• There must be a reduction in hours, with a corresponding reduction in wages, between 20% and 60%

• Unemployment Insurance qualifications must be met, including sufficient wages in the base period to establish a benefit rate.

Requirements

• All employees working in the same unit will have their hours and wages reduced by the same percentage

• No additional employees will be hired for the units affected in the program while the plan is in effect

• Fringe benefits cannot be reduced or eliminated

• If there is a collective bargaining agent, they must approve the plan

Shared Work Benefit Rate Calculation

• Hours not worked = Reduction %

Normal hours worked

Reduction % x Regular benefit rate =

Shared Work Benefit rate

Example: 20% reduced x $400 rate = $80 benefit

Difference between Shared Work and Regular Unemployment

Insurance Claim

• Employee is paid $800 per week

• Employee works four days for a 20% reduction in work

• Based on wages paid, the claimant’s benefit rate would be $400

Under a Regular Unemployment Insurance Claim

• This claimant would not be entitled to any benefits for two reasons

• 1st - the claimant worked four days during the week

• 2nd - the claimant earned over $405

Under a Shared Work Plan

• The claimant will be entitled to receive $80 (20% of $400 benefit rate) of Shared Work benefits

• In addition, the claimant will be paid $640

($800 x 80%) by the employer. This is a total of $720 plus continuing all their fringe benefits

How Does an Employee File a Shared Work Claim?

– After the employer’s Shared Work plan is approved by the Department of Labor, the employee must then file a claim application• The employer will supply the application

(sw330) and instructions to the employeeOR

• The employee can file a claim on-line at www.labor.state.ny.us, which must be entered during their 1st reduced week

How Does an Employee Receive their Benefits

• The employer will supply the certification for benefit forms (sw4)

• Certifications must be completed and signed by both the employer and the claimant

• Benefit payments will be made by Direct Payment card, commonly referred to as a debit card.

• Direct Deposit into a personal checking account is available to Web filers only

General Information Regarding a

Shared Work Claim

– No child support will be withheld from Shared Work benefits

– If the claimant has a part time job: • Every day the claimant works for the part time

employer during the week will reduce Shared Work benefits by 25%

• If the claimant works four or more days for the part time employer they will not be eligible for Shared Work benefits

Phone Numbers to Call with Questions

Any questions regarding claim applications or payment of benefits call:

Shared Work Unit at 518-485-6375