A voluntary program called Shared Work Ohio allows employers to avoid layoffs and workers to receive unemployment benefits proportionate to the time they don’t work. Working people keep their jobs and benefits, while employers retain their workers and avoid the need to hire and train new workers when demand recovers.

Suppose an employer has 10 workers, and no longer has enough work for 4 of them. Instead of the employer laying 4 people off, all workers can work three days a week, and receive unemployment benefits covering the two days each week they don’t work. They will also retain their employer-sponsored health care and other benefits.

Worksharing could be especially helpful to local governments that otherwise might have to lay off or furlough workers. The program could also help employers ramp up as the state reopens. Take a restaurant that has cut back from 10 workers to two, because it’s running only a carryout business. It could bring back the other eight on a half-time basis, and they would continue to receive unemployment benefits for the time they aren’t working. Over time, the employer could bring everyone back on full-time.

• The program must cover at least two employees (including part-time) who qualify for regular UC benefits and can’t work on a seasonal, temporary or intermittent basis.
• Employers submit plans to the Ohio Department of Job & Family Services for approval.
• Employees individually seek UC benefits after their employer’s plan is approved. They are not required to seek other jobs.
• Employers can designate different work units for different hour reductions if an across-the-board reduction would be impractical, and have multiple shared work plans.
• Plans can last up to 52 weeks; the employer can modify or end a plan during that time.
• A plan can reduce hours between 10% and 50%. Work hours for employees covered under a plan are reduced by the same amount.
• At the least, workshare will not change how much employers pay for this year’s UC benefits, and it may allow some to reduce such costs compared to those of layoffs.

More information is available at http://jfs.ohio.gov/ouio/SharedWorkOhio/

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