NYSDOL Approves Shared Work Program

As an alternative to layoffs in these tough economic times, the New York State Department of Labor (the "NYSDOL") has approved a "shared work" program. It's a voluntary program in which employers facing a temporary decline in business may participate. The concept is simple. Instead of laying off a percentage of its workers to cut costs, an employer can reduce the hours and wages of all or a particular group of employees. The employees whose hours and wages are reduced can receive partial unemployment insurance benefits to supplement their lost wages. There are minimum qualification requirements for participation in the program, including submission of a plan by the employer which must be approved by the NYSDOL. This type of program may be helpful to those employers wishing to save money on eventual retraining costs, and that don't want to layoff key workers who may be unavailable for re-hire at a later time. More information can be found here.