The economy remains unpredictable.  The ebb and flow of business and profitability is still unclear and has been since 2008.  Many employers are not and have not increased staff in years.  Worse, some employers still experience layoffs and staff reductions.  For those faced with the loss of staff, and particularly experienced staff that have special skills hard to replace, California and other States have a Work Sharing program that can help keep key staff employed while concurrently drawing unemployment benefits, thereby reducing their income loss.

California passed Senate Bill 1471 in 1978 creating a Work Share Plan and making it the first State to offer this type of program.  The premise is that everyone benefits:  the employer keeps trained, key employees intact, while the employees receive partial benefits and keep their jobs.

Rather than completely separating a good employee, employers can retain those workers on a reduced work schedule, thereby maintaining core staff for when the economy improves.  The cost of recruiting and training a new employee are eliminated, and the employees don't have to endure the difficulties associated with full unemployment.

How does it work? 
First, an employer must submit a Work Share plan to EDD - form 8686.  This identifies you as an employer, where you're located, how much of your work force will be affected and to what degree of reduction.  You must have a minimum of 10% reduction in wages and hours to qualify, and at least two employees must be affected.

Once EDD approves your application, the program is good for six months, and you may re-apply if that period expires.  Employees must continue to be regularly employed, be available for all work, and accept any work offered by the employer.  Certifications are provided to the employer, who completes them each week an employee qualifies, and submits them to EDD.

What's in it for the employee? 
Instead of being totally laid off, the employee continues with a reduced work schedule.  EDD provides, on a percentage basis, the difference between wage loss based on work reduction and what they would draw in benefits as a result.  If a worker experiences a 20% cutback in wages weekly, he/she will be entitled to 20% of their UI weekly benefit amount.  For someone earning $500 weekly, a 20% reduction would be $100.  Presuming their UI claim was $300 weekly, 20% of the claim would be $60.  Rather than losing $100 in wages, they lose only $40 given the "subsidy" of the UI claim.

Charging of Work Share benefits is no different than regular benefit payout: charges are assessed against your UI account, however, at a much lesser weekly amount than if the employee was receiving full benefits.  For Non-Profit employers participating in reimbursable financing, charges are assessed 100% against your account, but again, at a reduced amount given wages earned in the program.

Consider this plan if you think a reduction in force is imminent.  It doesn't work all the time for all employers, but it is a good alternative to losing key staff and having to start over with all new staff. 

Below is a list of states that currently participate in Work Share Programs as of November 2013 per National Conference of State Legislatures:  

More information can be found at:   www.edd.ca.gov or http://www.ncsl.org/research/labor-and-employment/work-share-programs.aspx