The Shared Work Unemployment Compensation Program is an alternative to layoffs for employers faced with a reduction in available work. It allows an employer to divide the available work among a specified group of affected employees instead of a layoff. These employees receive a portion of their unemployment benefits while working reduced hours. To participate, an employer must complete an application for the affected unit within the company, and submit it to the Division of Employment Security (DES) for approval.
The DES may approve a Shared Work Plan if:
- There is an “affected unit” of three or more employees.
- The normal weekly hours of work and corresponding wages for a participating employee are reduced in the plan by not less than 20 percent and no more than 40 percent.
- The plan applies to at least 10 percent of the employees in the affected unit.
- The employer certifies that the fringe benefits provided will remain the same as if their normal hours had not been reduced, or to the same extent as other employees not participating in the Shared Work Program
- The employer certifies that the implementation of a Shared Work Plan and the resulting reduction in work hours is in lieu of a layoff that would affect at least 10 percent of the employees in the affected unit and that would result in an equivalent reduction in work hours.
- The employer has submitted all quarterly contribution and wage reports required to be filed for all past and current periods, and has paid all taxes due for all past and current periods.
Employee Eligibility Program
- An individual must accept all normal work hours offered by the participating employer for the claim period filed.
- An individual must be able to work and be available for normal work hours with the participating employer.
- An individual must be eligible for regular unemployment benefits in the State of Missouri.
Process Once the Application is Filed
If the plan is approved, the employer must complete a biweekly request for payment. The forms will continue to be mailed to the employer for each week the plan is in effect.