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Work sharing provides employers with an alternative to layoffs when they are faced with a temporary decline in business. Instead of laying off a portion of the workforce to cut costs, an employer may reduce the hours and wages of all employees or a particular group of workers.
If your employer furloughs you because it does not have enough work for you, you are not entitled to take paid sick leave or paid expanded family and medical leave. However, you may be eligible for unemployment insurance benefits.
The Shared Work Program helps keep trained, productive employees on the job during temporary business downturns, meaning New York businesses can gear up quickly when conditions improve, and New York workers get to stay on the job. Full-time, part-time and seasonal employees are eligible.
During the leave, an employee does not get paid but they are still technically employed by the employer. 2 However, furloughed employees are banned from doing any work on behalf of their employer during the leave.
Shared Work is based on hours worked for the Shared Work employer. Weekly wages are not reported. Part-time employees are eligible for Shared Work; the 20-40% reduction in hours will be based on their normal weekly work hours.
Under California's Work Sharing program, an employer facing the same situation could file a Work Sharing plan with EDD reducing the work week of all employees from five days to four days (a 20 percent reduction). The employees would be eligible to receive 20 percent of their weekly Unemployment Insurance benefits.
If a worker is put in a temporary layoff status or furlough, then declines their employer's request to come back to work, the worker is not eligible for unemployment benefits.
The voluntary Shared Work program was developed to help Texas employers and employees withstand a slowdown in business such as the impact of COVID-19. Shared Work allows employers to supplement their employees' wages lost because of reduced work hours with partial unemployment benefits.
SharedWork Ohio is a voluntary layoff aversion program. It allows workers to remain employed and employers to retain trained staff during times of reduced business activity. Under a SharedWork Ohio plan, the participating employer reduces affected employees' hours in a uniform manner.
Furloughs and layoffs are two ways employers address the problem of not having enough work or enough budget for their employees. However, a furlough is meant to be temporary, while a layoff is more likely to be permanent.