NEW YORK STATE DEPARTMENT OF LABOR

Shared Work Program

Shared Work Program

• Voluntary program – alternative to layoffs

• Employer can 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 you can reduce hours worked without laying employees off

– Allows employers to retain quality employees for when business improves

– Employees do not have to look for work– Employees in Shared Work plan can

earn more than $405 in a week and still receive partial benefits

Features

– You set up plan using units you design

– You can have one unit or many

– Different units can have a different percentage of reduction

– Weeks on plan do not have to be consecutive

Features

– Shared Work benefits are charged to the employer’s experience rating account

– 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

– Have at least 5 full time employees

– Have been liable for at least 4 completed calendar quarters

– Have to be located in New York State or have a base of operations in New York State

– Must have filed quarterly reports and paid contributions

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

Employer Certifies

– Fringe benefits will continue for employees on the plan

– If there is a collective bargaining agent, they have to sign off on the plan

Shared Work Benefit Rate Calculation

• Hours not worked = Reduction %

Normal hours worked

Reduction % x Regular benefit rate =

S/W Benefit rate

Difference between Shared Work and Regular Unemployment

Insurance Claim

• Employee 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

• The claimant would not be entitled to any benefits

• The claimant worked four days during the week

• The claimant earned over $405

Under a Shared Work Plan

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

• In addition, the claimant will be paid $640

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

How Does an Employer Apply?

– Complete an application, if possible, submit two weeks prior to start date

– When completing the application, if possible, please list participants in either numeric or alphabetical order

– Applications can be found on our www.labor.ny.gov website or by calling (518) 457-2635

Plan Review

– The plan will be reviewed and DOL staff will contact the employer, via telephone, regarding any questions regarding:• One person units• Corporate officers on plan• Incomplete application

– Once approved, we will call the employer and send forms that need to be completed for registering employees for benefits

Approval

– Once approved, the employer must submit the appropriate forms including:

• SW 330

• SW 330.2

• LO 4WT – request for tax withholding

• SW 4

• SW 4.1

General Information Regarding a

Shared Work Claim

– Direct Deposit is available if the claim is filed online at the www.labor.ny.gov website.

– No child support will be withheld– 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

Shut Down

The employer can have a complete shut

down for up to two consecutive weeks

without the Shared Work plan being

transferred to a regular Unemployment

Insurance claim.

Phone Numbers to Call with Questions

• Any questions regarding the S/W application you can call:

Liability & Determination at 518-457-2635

• Any questions regarding payment of benefits call:

Shared Work Unit at 518-485-6375