Additional Help for Employers… Alternative to Employee Layoffs

By | March 18, 2020
EDD Work Sharing Program
Employers can apply for the Unemployment Insurance (UI) Work Sharing Program if reduced production, services, or other conditions cause them to seek an alternative to layoffs. The Work Sharing Program helps employees whose hours and wages have been reduced: Receive UI benefits. Keep their current job. Avoid financial hardships. The Work Sharing Program helps employers: Minimize or eliminate the need for layoffs. Keep trained employees and quickly prepare when business conditions improve. Avoid the cost of recruiting, hiring, and training new employees. Requirements To participate, employers must meet all of the following requirements: Be a legally registered business in California. Have an active California State Employer Account Number.At least 10 percent of the employer’s regular workforce or a unit of the workforce, and a minimum of two employees, must be affected by a reduction in hours and wages.Hours and wages must be reduced by at least 10 percent and not exceed 60 percent.Health benefits must remain the same as before, or they must meet the same standards as other employees who are not participating in Work Sharing.Retirement benefits must meet the same terms and conditions as before, or they must meet the same as other employees not participating in Work Sharing.The collective bargaining agent of employees in a bargaining unit must agree to voluntarily participate and sign the application for Work Sharing.Identify the affected work units to be covered by the Work Sharing plan and identify each participating employee by their full name and Social Security number.Notify employees in advance of the intent to participate in the Work Sharing program.Identify how many layoffs will be avoided by participating in the Work Sharing program.Provide the EDD with any necessary reports or documents relating to the Work Sharing plan.   Restrictions Leased, intermittent, seasonal, or temporary service employees cannot participate in the Work Sharing Program.Corporate officers or major stock holders with investment in the company cannot participate in the Work Sharing Program.The Work Sharing Program cannot be used as a transition to a layoff.

Click Here to go to the EDD Work Sharing Site