Work Share Employer

What is Work Share?

Michigan’s Work Share program provides employers with an alternative to layoffs when the work available to employees decreases. Instead of the employer laying off some employees, all employees share the available work by working reduced hours and collecting a portion of unemployment benefits.

More information is available on the Work Share webpage.

Are there any requirements for employee participation

Yes. Employees must have earned enough wages to qualify for a regular unemployment claim in order to participate in the Work Share Program. Employees who will work 40 or more hours per week while the plan is in effect are also excluded. An employee cannot have more than one active unemployment claim and must stop certifying on their regular UI claim the week they return to work on a Work Share plan.

Can an employee participate in Work Share if they have a part time job or other source of employment?

Yes. However, if they work more hours in their other employment than were reduced by the Work Share employer it is possible that their weekly unemployment benefit amount would be affected. For example, if they are reduced 10 hours with the work share employer and work 12 hours with a different employer, they will not receive benefits for that week. Employees must report the number of hours worked each week with another employer to the work share employer.

Can I lay off some of the workers participating in the Work Share plan and continue with some?

No. You may not lay off any employees in a Work Share plan during the duration of the plan. However, if layoffs are unavoidable you can terminate the Work Share plan for that unit and create a new plan.

Can the union representative request a modification or termination of a Work Share plan

No. The union cannot unilaterally modify or terminate a Work Share plan.

How does an employer sign up for the Work Share program

Employers may file an application online through the Michigan Web Account Manager (MiWAM).

How does an employer terminate their participation in the Work Share program?

An employer may terminate a Work Share plan by providing written notice to the Unemployment Insurance Agency. The Unemployment Insurance Agency may also terminate a plan for good cause.

How exactly does the program work?

Weekly benefits amounts vary depending on past employment history. If a worker establishes weekly benefit amount, for example, of $360, under the Work Share program, a worker whose hours were reduced by 10 percent would receive a Work Share benefit payment of $36 ($360 x 10%) in addition to their wages.

How long can my employees receive Work Share benefits?

Assuming an employee is otherwise eligible, he or she may receive Work Share benefits until the Work Share plan ends, or up to 52 weeks.

How will I know if my Work Share plan is approved?

Employers are notified through their MiWAM account if the plan is approved or denied.

If an employer chooses Work Share must he or she use it for their entire business?

No. A Work Share plan can apply to a department, shift or organizational unit. Employers are given flexibility to organize each work unit they want to participate in Work Share.

If you laid off employees can you rehire them and then do Work Share?

Yes, employers can participate in Work Share after re-calling their employees. There is currently no waiting period to apply. Note: Returning employees who had already filed and are receiving unemployment insurance benefits on their regular claim must stop certifying for benefits on the regular claim, and will begin receiving benefits on the Work Share plan.

Must hours of work be reduced equally for all employees

All employees participating in the same Work Share plan must be treated equally, with the same percentage of hours reduced. However, there may be multiple Work Share plans for an employer covering different units. For example, one Work Share plan may reduce the employees hours by 25 percent and another plan for a different department, unit, location, may reduce hours by 40 percent.

Should my application specify which employees will be participating in the Work Share program

Yes. The plan must include the name, Social Security number, normal hours worked per week, and the proposed reduction of hours per week for the employees in the affected unit.

What are the requirements to receive Work Share benefits

Participating employees must have earned a sufficient amount of wages in order to establish a regular unemployment claim in order to receive Work Share benefits. The program requires employers to maintain the fringe benefits of participating employees; and if the employees are covered by a collective bargaining agreement approval must be obtained from the bargaining representatives to participate.

To receive approval for a Work Share plan the employer must certify that the plan is in lieu of layoffs and would result in a reduction in hours and wages for all employees listed on the Work Share plan.

Employers must have paid wages for at least 12 of the previous quarters.

Employee hours/wages may be reduced by a minimum of 15 - 45%.

Experience account balance must have a positive reserve

All employees in the affected unit participate in the plan.

A plan must include a minimum of two employees.

Plan may be approved for any period of up to 52 consecutive weeks.

Work Share does not apply to seasonal, temporary, or intermittent employment.

Employers may have multiple plans covering separate work units.

Employers are given flexibility to organize each work unit or work division they want to participate in Work Share.

What happens if an employee receives holiday, sick or vacation pay?

If the time off is a fringe benefit and does not exceed the agreed upon work reduction hours, the employee is eligible for Work Share. For example, there is a 20% reduction for Work Share (one day off) and the employee takes the remainder of the week for a paid vacation (fringe Benefit). However, if, for example the employee takes a paid 40 hour vacation with no reduction taken for the Work Share hours, that employee is not eligible for the Work Share benefit for that week and as long as this condition is in place.

What other responsibilities does an employer have after the plan is approved

The employer will be required to submit certifications on behalf of their employees on a weekly or biweekly basis.

It is the employer’s responsibility to inform their employees that they have been included in a work share plan. Visit the UIA Work Share website at Michigan.gov/workshare for a flyer which may be provided to your employees about Work Share.

Where can an employer direct questions about Work Share?

For more information about Work Share, visit Michigan.gov/workshare or call the Office of Employer Ombudsman at 1-855-484-2636.

Why should an employer consider using the Work Share program

Use of the Work Share program immediately minimizes or eliminates the need for layoffs, enables a business to retain trained employees, and avoid the expense of recruiting, hiring and training new employees. Work Share also saves employers money. In addition, employees retain their fringe benefits and are spared the hardship of full unemployment.

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Work Share Employer