Worksharing: A tool to avoid layoffs in Ohio

April 29, 2010

Seventeen states are using a creative approach to helping employers and workers weather bad times. These programs, which allow the payment of unemployment benefits to workers at employers that shorten workweeks instead of laying off staff, can benefit Ohio workers and the companies that employ them in several ways. Employers can retain skilled employees, avoid expensive retraining and rehiring, and boost employee morale, when compared to layoffs. Employees can maintain much of their income and stay employed. A bill in the Ohio House of Representatives would establish such a program, known as worksharing or short-time compensation. Worksharing is no panacea, but it would provide a means for some Ohio employers to avert layoffs.

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