File a Shared-Work Application

With the Shared-Work program, an employer divides the available work hours equally among an employee unit rather than laying off any employees. Employees covered by a Shared-Work plan receive Unemployment Compensation (UC) benefits while they work a reduced schedule.

Both the employer and the employee must be eligible.

Employer requirements:

• The employer has filed all quarterly UC tax reports and other reports required under the PA UC Law.
• The employer has paid all contributions, reimbursements, interest, and penalties due through the date of the employer’s application.
• If the employer is contributory, the employer’s reserve account balance must be a positive number.
• The employer has paid wages for the 12 completed, consecutive calendar quarters preceding the date of the employer’s application.
• The employer must certify that it will continue to provide health and retirement benefits under the same terms and conditions to participating employees.
• The employer must provide a list of the weeks within the Shared-Work plan period during which the participating employees are anticipated to work fewer hours than the agreed-upon reduction percentage due to holidays, designated vacation periods, equipment maintenance or similar circumstance.
• The employer must abide by all terms and conditions of the Shared-Work requirements in the PA UC Law.

Once approved, employers must agree not to:

• Hire new employees in--or transfer employees to—the affected unit.
• OR lay off participating employees or reduce their hours of work by more than the reduction percentage.

For employees to participate:

• The employee has been employed in the affected unit for at least three months.
• The employee financially eligible for UC benefits.
• The employee works less than 40 hours a week under the approved percentage reduction.
• At the employer’s direction, the employee must successfully file an initial UC application or reopen an existing claim.
• Remember: The first eligible claim week will not be paid. This is called the waiting week. If you had an active UC claim before the Shared-work plan begins, and you have already served your waiting week during that benefit year, you do not have to serve another waiting week when the Shared-Work plan begins.

• Identify work unit(s) that will have a uniform reduction of hours.
• Determine the reduction percentage that each unit will work each week.
• Prepare a list of all employees in each affected work unit, their normal work hours and their work hours under the reduction percentage.
• Include employees that may return from FMLA or other absence from work during the reduction period (employees may not be added to an approved Shared-Work plan)
• Employees may not be moved between plans.
• Work with any collective-bargaining units that represent affected employees to secure their written approval of the plan.
• Identify any weeks where any unit will be offered fewer hours than the reduction percentage due to a holiday or other scheduled event.
• Choose the Sunday start date that hours will be reduced (at least one week after the date that you submit your plan application) and an estimated Saturday for the work reduction to end.

For questions about employers, employees, or Shared-Work bargaining units, visit L&I's Shared-Work page.