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Shared Work Program

An alternative to layoffs

On January 17, 2014, the governor signed the Shared Work legislation, A4189, into law, P.L.2011, c.154 (C.43:21-20.3). The Shared Work Program is an alternative to layoffs.
An employer who has at least 10 employees may apply to the division for approval to provide a Shared Work program. The purpose of such a program is to stabilize an employer’s workforce during a period of economic disruption by permitting the sharing of the work remaining after a reduction in total hours of work. Under an approved Shared Work program, workers who have their hours of work reduced may receive “short-time” unemployment benefits for the lost hours of work, while continuing to work at reduced hours with a continuation of their health insurance, pension coverage, and other benefits.

Advantages for the employer

  • Helps employers continue to provide quality services by retaining skilled workers.
  • Skilled, trained work teams can remain intact as business improves.
  • Avoids the time and expense of hiring and training new employees.
  • Helps maintain employee morale.
  • For some employers, the unemployment insurance tax rate may be lower than if employees were totally unemployed.

Advantages for the workers

  • Workers keep their jobs and continue to earn wages.
  • Workers retain their health insurance and retirement benefits.
  • Reduction in pay is partially offset by unemployment insurance benefits.
  • Employees maintain job skills.

For more information about the Shared Work program, contact the Division of Employer Accounts at 609-633-6400 Ext. 3347, or email the Shared Work program.

 

Shared-Work Plan Application                        Shared-Work pg.3