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What is work share?

Information brought to you by the Unemployment Insurance Division of the

Dept. of Workforce Development

WORK-SHARE PROGRAM

The Work‐Share Program (also called Short‐Term Compensation or STC), is designed to help both employers and employees.


What is it?

Work-share programs allow an employer to reduce the number of hours an employee works during a week while ​unemployment compensation makes up some of the difference in income. Work-sharing would typically become available during a business slowdown.

Work sharing is a win for both employers and employees.

  1. The employer can reduce the number of hours that an employee group works without potentially losing the employees.
  2. Employees affected by reduced hours can have their lost wages made up through a portion of their weekly unemployment compensation payments.

So, for example, if a company is experiencing less demand for its products, and consequently fewer sales and down revenue, it can submit a plan to its state UI program requesting work sharing to cushion the reduced hours for its employees.


Why do it?

Work‐Share avoids layoffs, allowing workers to remain employed & employers to retain trained staff during times of reduced business activity.


How does it work, and how does a program qualify?

  • Working hours will be evenly reduced among employees in the Work‐Share Program.
  • The reduction of hours will be a set percentage of at least 10% but not more than 50%of the normal hours per week of each employee, and will remain consistent every week.
  • Participating employees must be regularly employed by the employer.
  • The plan must include the greater of 20 positions or 10% of the employees in a work unit.
  • Both full time and part time employees can participate.
  • Seasonal, temporary, or staff employed on an intermittent basis are excluded.
  • Only employees that have been employed by the employer for a period of at least three months on the effective date of the Work‐Share Program can be participants.

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