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 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, you must first design a Shared Work plan. Complete an application online through secure UI Online Services on your Employer Information page.  Applying online will provide more accurate information and a quicker response by email.  Or 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.

If the Plan Application is submitted online, there will be an email notification of approval to you. It will contain links to all the forms needed for your employees.

If the Plan Application is submitted on paper and 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 unemployment Insurance (UI) will receive both their reduced wages and Shared Work benefits. 

If the employee files their Application for Benefits on the Department's website instead of by paper, the employee will have the additional option of receiving benefits by direct deposit into their own bank's checking account.  This option is only available to claimants who file their claim on the web.

Every one to two weeks during the plan, you must give the forms (SW 4) to participating employees.

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 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 two employees working in New York State
  and
• Paid UI 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 employees who normally work no more than 40 hours per week
• Not reduce or eliminate fringe benefits unless fringe benefits are also being reduced or eliminated for the entire work force
• 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 additional 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 participate 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 26 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.

File a Shared Work application online through the UI Online Services on your Employer Information page.