Tuesday, May 1, 2012

Pennsylvania Shared-Work Program


SHARED-WORK PROGRAM

In March 2012, Pennsylvania implemented a new Shared-Work Program. The Shared-Work program allows an employer to temporarily reduce the work hours of a group of employees as an alternative to a lay-off. Employees covered by the plan receive a percentage of their UC Weekly Benefit Amount, or WBA, while they work the reduced schedule, if they are otherwise eligible for UC.
The percentage by which each employee's work hours are reduced is called the "reduction percentage." The employer determines the reduction percentage. It must be at least 20 percent and cannot exceed 40 percent. The reduction percentage must be the same for all employees participating in a Shared-Work plan. For example, if an employee normally works 40 hours per week, and the reduction percentage is 20 percent, then the employee's hours are reduced by 20 percent and he or she would work 80 percent of 40 hours, or 32 hours per week. If an employee in the same unit works 30 hours per week, then he or she would work 80 percent of 30 hours, or 24 hours per week.
For each week included in the plan, an employee receives a percentage of his or her UC WBA equal to the reduction percentage. For example, if the employee's WBA is $400 and the employee's hours are reduced by 20 percent under the plan, the employee would receive 20 percent of $400 or $80 in Shared-Work UC.
The employer implementing a Shared-Work plan will be charged 100 percent of the UC paid to participating employees within the effective period of the plan.
If you have questions regarding this program, please contact 877-785-1531.
Forms:
Original article found on the PA Labor and Industry site, here.





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