Overview
Rather than a layoff, the Shared Work Unemployment Compensation Program allows an employer to divide the available work among a group of affected employees. These employees receive a portion of their unemployment benefits while working reduced hours up to 52 weeks.
Shared Work is intended for businesses faced with a reduction in available work.
How It Works for Businesses
Requirements for the Business:
- Normal hours are reduced between 20 and 40 percent
- Affects at least 10 percent of employees
- If fringe benefits are provided, they must continue
How Will It Affect Your Rates?
Shared Work benefits will be charged to an employer's account in the same manner as regular unemployment benefits. Several factors can affect an experience rating. The Division of Employment Security has knowledgeable specialists that can help guide you through the process.
When Business Improves
When business improves, and your workers can return to full time, simply notify the Division. Your account will remain available during the year, if your business needs it.
Business Example:
A business that is facing a 20 percent reduction in production usually lays off one-fifth of its workforce.
Under Shared Work, the firm retains its total workforce on a four-day-a-week basis. This allows the business to retain 100% of employees.
Reducing hours from 40 to 32 (M, T, W, Th) cuts production by the needed 20 percent.
WIN: Workers receive wages for the four-day workweek AND get money from the Shared Work Program.
WIN: The business keeps all employees AND reduces labor costs.
How It Works for Employees
Requirements for the Employee:
- The employee must accept all normal work hours offered by the participating employer for the claim period filed.
- The employee must be eligible for regular unemployment benefits.
Additional Unemployment Benefit Information
- The first eligible week counts as the waiting week.
- The amount paid from Shared Work will be deducted from the maximum benefit amount, or the total benefits one is eligible to receive.
- Partial benefits are available up to 52 weeks, but cannot receive more than the maximum benefit amount.
- If the employer does not submit a shared work week and the employee files for unemployment benefits, the employee will be required to complete three work search activities during the week.
- The employee will be credited one completed work search for each day worked during the week.
Employee Example:
If an employee earns $773.08 per week ($154.61 per day) then loses his job, they would be entitled to receive $320 a week from unemployment benefits (known as weekly benefit amount). Missouri's maximum weekly benefit amount is $320.
Under Shared Work: The employee earns normal wages from a four-day workweek (M, T, W, Th) AND receives benefits from the Shared Work Program for the day of layoff (Friday).
Calculation: $320 WBA x 20% time cut = $64 money received through SHARED WORK.