The national unemployment rate sits around 3.7%. However, there are growing concerns about a potential recession. Employers are seeing large corporations like Facebook and Twitter lay off thousands of employees. It feels like not too long ago, we were in the same position at the beginning of the COVID-19 pandemic. You might be wondering if there is an alternative to layoffs that would allow employees to access some unemployment benefits while working fewer hours. The answer depends on which state your employees are in. Generally, these programs are broken down into two categories: work share and Rapid Response.
Work share programs allow employers and employees to access a portion of their unemployment benefits in exchange for a reduction in the number of individuals who might have otherwise been laid off. Rapid Response programs work with employers to provide assistance during layoffs. They connect employees with available state and federal assistance.
Arizona and Colorado offer work share programs in addition to their Rapid Response teams. Idaho, New Mexico, Utah, and Wyoming do not offer Work Share programs but do offer Rapid Reponse teams. Below is a breakdown of the assistance offered by state unemployment divisions to assist employers in avoiding or minimizing layoffs.
Arizona
The Shared Work program provides an alternative for employers faced with a reduction in force by allowing businesses to divide available work or hours among affected employees in lieu of layoffs. The program allows the employees to receive a portion of Unemployment Insurance (UI) benefits while working reduced hours.
Colorado
Similarly, the Colorado Work Share program lets businesses temporarily reduce the hours of their employees, instead of laying them off during economic downturns. While an employee is working fewer hours, he or she may be eligible to collect part of his or her regular unemployment benefits. Technically referred to as short time compensation, the goal of work sharing programs is to reduce unemployment. The Division of Unemployment Insurance offers a Work-Share Program as an alternative to laying off your employees. There are employer qualification requirements that must be met for employers to participate, and they must apply for the program. Applications will be processed within a week.
Idaho
Idaho currently does not have a work share program. The state’s Rapid Response program helps employers plan ahead for a layoff with the goal of making the process smoother, reducing the negative aspects of the event for employers and workers.
New Mexico
New Mexico currently does not have a work share program. The state does offer alternative assistance to job seekers. Additionally, New Mexico’s Rapid Response team provides access to user-friendly resources and information to help transition affected workers into re-employment. The assistance helps employees gain access to all federal and state programs that have resources available to help them.
Utah
Utah currently does not have a work share program. The state does offer pre-layoff services, including Rapid Response services that provide immediate aid to companies and affected workers from layoffs and plant closings. Providing Rapid Response services helps alleviate the impact of unemployment.
Wyoming
Wyoming currently does not have a work share program. The Rapid Response program provides services to help company leadership and affected workers through the painful transitions associated with job loss. The program helps affected workers apply for unemployment benefits, access other income support, and health care resources.
How Can Employers Council Help You?
Employers Council is also here to help during difficult decisions. Our attorneys can help navigate layoff risk and the unemployment system. We can also provide guidance on the Worker Adjustment and Retraining Notification (WARN) Act, which requires some employers to provide notice during certain layoffs. Our HR consultants can help with messaging and making sure your remaining staff is able to endure after a layoff. We also have helpful resources, such as sample waiver and release documents, our whitepaper on layoffs, and the Terminating Employees with Compassion training that can be found in our training catalog. If you have any questions, please email the Employers Council Member Experience Team.
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