NEW YORK STATE DEPARTMENT OF LABOR Shared Work Program
Dec 24, 2015
NEW YORK STATE DEPARTMENT OF LABOR
Shared Work Program
Shared Work Program
• Voluntary program – alternative to layoffs
• Employer can reduce hours of full time employees by 20 to 60%
• Employees will receive partial UI benefits equal to the percent of reduction
Advantages of Shared Work Plan
– During periods of temporary slow down you can reduce hours worked without laying employees off
– Allows employers to retain quality employees for when business improves
– Employees do not have to look for work– Employees in Shared Work plan can
earn more than $405 in a week and still receive partial benefits
Features
– You set up plan using units you design
– You can have one unit or many
– Different units can have a different percentage of reduction
– Weeks on plan do not have to be consecutive
Features
– Shared Work benefits are charged to the employer’s experience rating account
– Claimants can receive up to 20 weeks of Shared Work benefits
– There may be eligibility for additional weeks depending on Federal Extended Benefits legislation
Requirements
– Have at least 5 full time employees
– Have been liable for at least 4 completed calendar quarters
– Have to be located in New York State or have a base of operations in New York State
– Must have filed quarterly reports and paid contributions
Requirements
– All employees working in the same unit will have their hours and wages reduced by the same percentage
– No additional employees will be hired for the units affected in the program while the plan is in effect
Employer Certifies
– Fringe benefits will continue for employees on the plan
– If there is a collective bargaining agent, they have to sign off on the plan
Shared Work Benefit Rate Calculation
• Hours not worked = Reduction %
Normal hours worked
Reduction % x Regular benefit rate =
S/W Benefit rate
Difference between Shared Work and Regular Unemployment
Insurance Claim
• Employee paid $800 per week
• Employee works four days for a 20% reduction in work
• Based on wages paid the claimant’s benefit rate would be $400
Under a Regular Unemployment Insurance Claim
• The claimant would not be entitled to any benefits
• The claimant worked four days during the week
• The claimant earned over $405
Under a Shared Work Plan
• The claimant will be entitled to receive $80 (20% of $400 benefit rate) of Unemployment Insurance benefits
• In addition, the claimant will be paid $640
($800 x 80%) by the employer for a total of $720 plus continuing all their fringe benefits
How Does an Employer Apply?
– Complete an application, if possible, submit two weeks prior to start date
– When completing the application, if possible, please list participants in either numeric or alphabetical order
– Applications can be found on our www.labor.ny.gov website or by calling (518) 457-2635
Plan Review
– The plan will be reviewed and DOL staff will contact the employer, via telephone, regarding any questions regarding:• One person units• Corporate officers on plan• Incomplete application
– Once approved, we will call the employer and send forms that need to be completed for registering employees for benefits
Approval
– Once approved, the employer must submit the appropriate forms including:
• SW 330
• SW 330.2
• LO 4WT – request for tax withholding
• SW 4
• SW 4.1
General Information Regarding a
Shared Work Claim
– Direct Deposit is available if the claim is filed online at the www.labor.ny.gov website.
– No child support will be withheld– If the claimant has a part time job:
• Every day the claimant works for the part time employer during the week will reduce Shared Work benefits by 25%
• If the claimant works four or more days for the part time employer they will not be eligible for Shared Work benefits
Shut Down
The employer can have a complete shut
down for up to two consecutive weeks
without the Shared Work plan being
transferred to a regular Unemployment
Insurance claim.
Phone Numbers to Call with Questions
• Any questions regarding the S/W application you can call:
Liability & Determination at 518-457-2635
• Any questions regarding payment of benefits call:
Shared Work Unit at 518-485-6375