Employers considering including participation in work-sharing programs in their crisis management toolkit should do so by understanding the many issues that can arise. This special report explains what a work-sharing program is and outlines the issues that employers should consider when assessing whether to do so. The employer and employees (and, if applicable, the union) must agree to participate in a work-sharing agreement and apply together. The COVID-19 optimized measures put in place by Service Canada were intended to reduce the processing time before the agreement start date to 10 business days (from 30 business days). Therefore, employers must currently submit their applications at least 10 business days before the desired start date of the agreement (see Work-Sharing Program-COVID-19 for more details). Pickett regularly advises clients on employment law matters, including allegations of unlawful discrimination, current cuts, FMLA leave, the Americans with Disabilities Act, non-compete obligations, and litigation under the Employee Retirement Income Security Act. He has extensive litigation experience and appears frequently in state and government. To participate, an employer usually submits a division of labor plan to the agency for approval. Once the organization has approved the employer`s plan, the employer may temporarily reduce the hours of work and compensation of some or all of its employees in accordance with the plan, and affected employees may receive unemployment benefits related to the reduction. 4. Employers should carefully consider the scope of their potential division of labour plan and identify precisely the groups involved. Employers have some flexibility in defining the applicable „group“ or „unit“ of employees as part of a division of labour plan (e.g., B by department, function and shift).

Depending on the state, employers can submit multiple plans for different groups. For example, an employer could submit a 20% reduction in hours for its marketing department and a second plan for a 30% reduction in hours for the operations department. Therefore, when considering introducing layoffs, leaves or reductions in hours of work for some or all of their employees, employers should consider whether a work-sharing program is right for them. The time has come to do so, as the Coronavirus Aid, Coronavirus Assistance and Economic Security Act (CARES Act) requires all employees receiving unemployment benefits (in whole or in part) to receive unemployment benefits until at least 31 September. July 2020 received an additional $600 per week. The CARES Act requires states to enter into agreements with the United States. The Ministry of Labour will participate in the new unemployment benefits under the CARES Act, including the additional benefit of $600 per week. The following examples illustrate the Massachusetts work portion formula, which was subject to a statutory work subdivision program prior to the passage of the CARES Act. The partial work contributions presented in the following examples represent 20% of the employee`s maximum unemployment benefit on the basis of weekly income, but do not take into account external income, dependent credits or other factors used by the state unemployment agency to calculate unemployment benefits.

In addition, each state has its own maximum unemployment benefit and its own formula for calculating unemployment benefits. In Massachusetts, the maximum unemployment benefit is $823, which was used in the second example to calculate the partial contribution to work. Under the CARES Act, the federal government reimburses participating states 100% of the benefits they pay to offset portions of the workforce. The incentives recently introduced by the CARES Act encourage other states to create their own work-sharing programs. The CARES Act provides grants and offers of full or partial reimbursement of condominium benefits to states considering work-sharing programs. Once largely neglected, work-sharing programs are taking center stage as more states implement them and more employers use them. Employers should design division of labor plans that address the above issues and adhere to the plans once they are implemented. For example, instead of laying off 20% of its workforce, a participating employer can reduce by 20% every hour (and payroll) of its total workforce or part of its workforce. Affected employees would receive 80% of their regular wages from the employer with a division of labour. They would also be entitled to receive short-time unemployment insurance benefits from the State to compensate at least partially for the reduction.

A work-sharing program is an optional agreement offered by some states. Under a work-sharing program, employees of a participating employer are entitled to short-time working benefits for periods when the employer reduces their hours and wages, even if employees would not be eligible to receive them. For States that have adopted them, work-sharing programmes are administered by the State agency responsible for the management of unemployment benefits. Employers are struggling to balance competing priorities during the COVID-19 pandemic. This includes, for example, reducing costs, preserving labour and ensuring the safety and economic well-being of employees. In many states, a short-term compensation program (also known as „work-sharing“ or „work-sharing“) offers an alternative to leave and layoffs that minimizes the financial impact on employees. While work-sharing programs make sense (at least up to age 31. July 2020 and possibly beyond), employers should consider the following points: While each state that offers a work-sharing program has its own formula and state-specific variations, there are two attributes common to all that now make work-sharing programs particularly attractive. If the accusing party has claims that go beyond the law, the calculating party will hire legal counsel to make the additional claims that have nothing to do with the law. EEOC Work-Sharing Agreement and Collaboration with Local FEPAsThe Ministry has entered into a work-sharing agreement with the Equal Employment Opportunity Commission (EEOC). .