A Shared-Work plan allows an employer to temporarily reduce the work hours of a group of employees and divide the available hours equally rather than laying off any employees. Employees covered by a Shared-Work plan receive a percentage of their Unemployment Compensation (UC) Weekly Benefit Amount (WBA), while they work the reduced schedule, if they are otherwise eligible for UC
Shared-Work allows you, the employer, to retain your workforce during a temporary slowdown and then quickly ramp up operations without the expense of recruiting, hiring and training new employees. At the same time, Shared-Work helps to protect your employees from the financial hardship of a full layoff.
Potential Employer Benefits of Shared-Work:
Please Note: Shared-Work may increase the amount of UC contributions due.
If you are a contributory employer, the experience-rated portion of your UC contributions may increase based on the Shared-Work benefits that are paid.
If you are a reimbursable employer, you will be responsible for the portion of UC benefits which are attributable to the employee’s service with your company.
The scope of each Shared-Work plan
A Shared-Work plan must apply to one “affected unit.” An affected unit is a department, shift, or other organizational unit assigned by the employer. An employer may have more than one Shared-Work plan. There must be at least two participating employees, determined without regard to corporate officers.
Every employee in the affected unit must have their work reduced by the same percentage. The only exceptions are for employees employed for less than three months or employees who would work 40 or more hours a week. These employees are not permitted to participate.
How work hours are reduced:
The percentage by which each worker’s hours are reduced is called the “reduction percentage.” The employer determines the reduction percentage based on business needs, but it must be at least 20 percent and cannot exceed 40 percent. The reduction percentage must be the same for all employees participating in a Shared-Work plan. For example, if a worker normally works 40 hours per week, and the reduction percentage is 20 percent, then the worker’s hours are reduced by 20 percent. The worker would work 80 percent of 40 hours, or 32 hours per week. If a worker in the same unit normally works 30 hours per week, then he or she would work 80 percent of 30 hours, or 24 hours per week.
How UC benefits are determined under the Shared-Work plan:
For each week included in the plan, a worker receives a percentage of his or her UC WBA equal to the reduction percentage. For example, if the worker’s WBA is $400 and the worker’s hours are reduced by 20 percent under the plan, the worker would receive 20 percent of $400 or $80 in Shared-Work benefits.
Employer Responsibilities and Procedures
As an employer you may participate in the Shared-Work program if:
While enrolled in the Shared-Work program you agree that:
The Shared-Work application should include:
Your application will be reviewed within 15 days of receipt of the application. The decision to approve or disapprove a Shared-Work plan is a matter within the department’s discretion and is not appealable. If an application is disapproved, you are permitted to submit a new application.
Once your application has been approved:
Termination of a Shared-Work plan:
Online Plan Application
The first step is for the employer to complete a Pennsylvania UC Shared-Work plan application. Employers are encouraged to use the program’s online system, UCMS, to complete a Shared-Work plan application and access some functions of an existing plan. Click here for access to UCMS and begin the Shared-Work application. To login, provide your Keystone ID and password. After logging in, select the Shared Work menu from the bottom of the left navigation panel.
Employer Forms:
Claimant Forms:
Tell Your Union About Shared-Work – Print this brochure and provide to your union representative.
Contact a Shared-Work Representative:
Office of UC Benefits
Attn: Shared-Work
651 Boas St., Rm. 610
Harrisburg, PA 17121
Call: 833-728-2367
Email: SharedWork@pa.gov