If you're an employer going through tough times and you're thinking about laying off workers, take a moment to consider the work sharing alternative.
Think about this: when the economy turns around and your business picks up again, the best and brightest of the people you laid off will have moved on and you probably won't be able to get them back. You'll have to start out fresh with new, untrained workers who will take some time to get up to speed on your operations.
Seventeen state unemployment departments offer work sharing programs, also sometimes called "short time compensation" programs. Louisiana also has one on the books, but it hasn't been implemented.
These programs allow you to reduce your employees' hours and only pay them for hours worked. Unemployment pays your employees partial benefits on the balance of hours. This way you get to keep your skilled employees but reduce labor costs, while the state saves money because they don't have to pay out full unemployment benefits. Employees get to keep their job, their earnings and their benefits. It's a win for everyone.
It also takes some of the pressure of the downward spiral in the labor market and its wider ripple effects. That's one less person pounding the pavement competing for fewer jobs, one less person without health care benefits, one less family struggling to get by.
Marketplace Money did a story on work sharing this past weekend, which is how I learned it isn't available in every state.
The Center for Law and Social Policy (CLASP) recommends creating a federal work sharing program, and I'd have to agree. In his analysis, Neil Ridley of CLASP found that too few employers know about work sharing. As a result, it's under-utilized, although that's changing as the national unemployment rate nears ten percent. Better, more widespread use of work sharing programs could reduce unemployment, CLASP argues.
If you're an employee and you think you may be at risk of being laid off, check the list below to see if your state offers work sharing. If it does, let your HR department know - they may not be aware of it. If your state doesn't offer work sharing, write to your state representatives and tell them to get with the program.
Here's the list of states with work sharing programs - I've included links to the programs where I could find them. If you find links for the other states, please let me know!
Arizona
Arkansas
California
Connecticut
Florida
Iowa
Kansas
Maryland
Massachusetts
Minnesota
Missouri
New York
Oregon
Rhode Island
Texas
Vermont
Washington
Photo: "Big Pete" Ramagos, rigger at work on the TVA Dam in Douglas Dam, TN, 1942
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