Vigilant Blog

News, trends and analysis in employment law, HR, safety & workers' comp

Dec 10, 2014

State sponsored programs provide good options to avoid layoffs and furloughs

Q&AEmployee BenefitsWage and Hour 

Q: Our company needs to scale back operations for a few weeks while we complete a project at our facility. We don’t want to lose our skilled staff; are there any programs that would give them get access to unemployment benefits while we complete the project?

A: Possibly. Many states have programs in place for employers who need to reduce hours, providing lost wages to employees through partial unemployment while having almost no impact on the employer’s unemployment-insurance tax rate. These programs benefit employees because their lost wages are recovered, and it allows employers to keep trained and skilled staff during temporary slowdowns. Many state programs also benefit from federal subsidies, which make it cost effective for employers. And there is generally flexibility in the program, allowing employers to us it for some or all employees and with varying reductions in hours. Depending on your location, this program may be called a variety of names but is oftentimes known as Shared Work. Click here for Shared Work programs in Washington, Oregon, or California.

This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult legal counsel.