ESD’s SharedWork program can help recession-proof your business
December 21, 2022
The winter months are often a slower time for home builders, and with the fear of an economic downturn still looming, you may wonder how you can help your business and your employees survive. The Employment Security Department (ESD) SharedWork program can help recession-proof your business and provide stability to your employees during these uncertain times.
How can the SharedWork program recession-proof your business?
According to the ESD’s SharedWork page, [the SharedWork program] allows employers to reduce hours by as much as 50 percent. At the same time, their employees collect unemployment partial benefits to replace a portion of their lost wages.
The program is a win-win for businesses and their employees.
- You can keep your business moving forward without reducing your skilled workforce to save on payroll costs. Instead, you’re able to keep your staff on at reduced hours.
- Although your employees will have reduced hours, with the SharedWork program, they will be prorated a percentage of their unemployment insurance benefits to offset the hours they do not work.
- Your employees will be available if you need them to work more hours because they are not required to look for other work while they’re in this program.
- Eligibility is open to most businesses and industries.
How to get started with the SharedWork
For employers and their employees to take advantage of this program, the employer first needs to apply and be approved to participate. To see if you qualify, review ESD’s qualifications page here.
Once approved, it’s important to note the following from ESD:
- Claimants on SharedWork do not have to look for other work.
- They must be available for all work offered by their regular employer.
- Employers must continue to pay for employees’ health insurance.
- SharedWork plans last one year.
- Employees who work fewer hours may run out of benefits more quickly.
- SharedWork participants may be eligible for benefit extensions.