Through the Department of Unemployment Assistance (DUA), the WorkShare Program is an option for Massachusetts companies covered by the unemployment insurance (UI) system to manage employee hours in partnership with the UI benefit system. The program allows employers to bring back furloughed employees and hire new employees on a reduced basis to incentivize a return to work, or to avert full layoffs. Employees continue to receive a percentage of regular wages for the hours they work and receive a supplement from WorkShare through UI benefits. In addition to that, if an employee is eligible, they can receive an allowance of $25 per dependent child if they are the main or sole provider.
Before a business can apply for participation in the WorkShare Program, a WorkShare plan must be created. You must certify that the reduction in work hours is instead of layoffs; define the participants (definable unit with at least two employees such as a facility, department, shift, job function, etc.); provide the duration of the WorkShare plan (from 1 to 52 weeks); and provide the reason for the expected duration of the work reduction. The reduction percentage must be shared by all employees in the unit or units you have defined. The reduction percentage may range from 10-60%. The WorkShare Plan can be modified or canceled at any time. Employers can have more than one plan at a time. Employees listed in a WorkShare Plan must be permanent full-time or part-time workers; seasonal and temporary workers are not eligible.
The WorkShare Program is voluntary, and an employee can decline participation. WorkShare can include salaried workers if the employer reduces both hours and pay. Employer owners/officers of the organization must be eligible to receive UI benefits to participate in WorkShare. By law, a minimum of 2 employees must be listed on a WorkShare Plan. Your WorkShare Plan can include a scheduled shutdown for up to 2 weeks. Once a WorkShare Plan is approved, workers must work or be paid for the reduced hours stated on the plan each week. Any discrepancies in hours reported to the DUA (such as a worker working fewer or more hours in a week than the hours listed on the plan) must be reported. If employees did not work the set number of hours for a certain week, they can supplement by using other paid leave for a part of the week to make up for it. Employers must report weekly income earned by the employees from their second job for each week that the WorkShare Plan is in effect. Any wages that are exceed $246 will be deducted dollar-for-dollar from the weekly WorkShare benefit payment.
The DUA can revoke a plan with good cause for example failure to comply with the assurances given in the plan; unreasonable revision of the productivity standards for the affected unit; or conduct or occurrences that are intended to defeat the purpose and effective operation of the plan.
For more details or questions, please send email to: workshare@detma.org or contact the Program Office at 617-626-5521 or contact your Career Center Business Services Representative. To see a recorded webinar on the subject visit: https://www.youtube.com/watch?v=AIS12J1XAus.