New York State Department of Labor Unemployment Insurance

The Shared Work Program

It's no longer necessary to lay off employees during temporary declines in business. Now there's Shared Work - the layoff alternative.

The Shared Work program gives you an alternative to laying off full-time employees when you have to deal with temporary business downturns. It makes sense for you to keep productive employees. Instead of cutting staff, you can reduce the number of hours of:

• All employees
  or
• Just a select group

This totals $360.00 in wages and Shared Work benefits for each week of the plan, after an unpaid waiting week.

The Shared Work Program helps you avoid some of the problems caused by a layoff. If you keep your employees during a temporary slowdown, you can gear up quickly when business conditions improve. You do not have the expense of recruiting, hiring, and training new employees. Also, you spare your employees the hardships of full unemployment.

How It Works

To take part in the Shared Work Program, first you must design a Shared Work plan. Next, complete and submit both:

• Shared Work Plan Application (Form SW-2.1) and
• Shared Work Plan Participant Listing (Form SW-2.2)

to the address or fax number indicated on the application. 

Review instructions for completing these applications by clicking here.

The plan can cover your total work force, a particular shift or shifts, or a work unit or units. Submit your application at least two weeks but not more than four weeks before the proposed effective date.

Once the plan is approved, you will receive a supply of:

• Shared Work Continued Claim Waiting Week Certification (SW 4.1) forms
• Bi-weekly Shared Work Continued Claim (SW 4) certification forms and
• Shared Work Plan Application for Benefits forms (SW 330) for affected workers to fill out

Return the completed applications to DOL's Shared Work Unit in Albany for processing. Workers who qualify for UI will get both their reduced wages and Shared Work benefits.

Every one to two weeks during the life of the plan, you must give the claim certification forms (SW 4) to the employees who take part.

After the employees fill out their portion, you complete the certifications. Then send them to our central Shared Work Unit in Albany.

We electronically transfer the Shared Work benefits to each employee's Direct Deposit account or Direct Payment Card account. This usually happens within 48-72 hours of processing the certifications.

The Shared Work weekly amount is the employee's weekly unemployment benefit rate multiplied by the percentage that the plan reduces their hours and wages.

Who Can Apply

Before you apply, you must have:

• Employed at least five full-time workers (35-40 hours/week)
  and
• Paid UI tax contributions (you or your predecessor) for at least four consecutive calendar quarters

Your Shared Work plan must:

• Reduce work hours and corresponding wages 20 - 60%
• Apply to full-time workers who normally work between 35 and 40 hours a week
• Not reduce or eliminate fringe benefits
• Not extend beyond 53 weeks (when nearing the end of the plan, you may submit a request for a new plan)
• Replace a layoff of an equal percentage of employees

You cannot hire more full-time or part-time employees for the work group covered by the plan. If there is a collective bargaining agreement in effect, the collective bargaining agent must agree to take part in the Shared Work plan.

Benefit Eligibility

Employees may take part in the plan if they qualify to receive regular UI benefits in New York State. They must serve a waiting week before they receive Shared Work benefit payments. If they have already served a waiting period on an existing claim, they do not have to wait another week before collecting.

Employees covered under the plan:

• May receive up to 20 weeks of regular Shared Work benefits during a benefit year
• May not receive more in a benefit year from Shared Work benefits combined with regular UI benefits than they would receive under the regular UI program alone (26 times regular benefit rate)
• Must be fully available for work for the Shared Work employer, but are not required to look for other work
• Will reduce the amount of Shared Work benefits that they are eligible for if they work with a different employer or have self-employment
• Are not eligible for Shared Work benefits in any week in which they receive supplemental unemployment compensation benefits (SUB pay)

Visit our Frequently Asked Questions for answers to commonly asked questions regarding the Shared Work Program.