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How Does It Work?
Here's an example:
A company with 100 employees finds it necessary to lay off 20 people. With a Work Share plan, the employer keeps all 100 employees on the payroll, but reduces their work week from five days to four days (40 hours to 32 hours).
This will achieve the desired 20 percent reduction in payroll; all 100 employees will continue to earn wages for four days and will receive work Share unemployment benefits for the fifth day.
While weekly benefit rates vary from person to person, if a worker was fully unemployed their weekly benefit amount would be, for example, $360. Under Work Share, a worker whose hours were reduced by 20 percent would receive a $72 Work Share benefit ($360 X 20% = $72).