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Work Sharing: A Win-Win-Win Strategy for Avoiding Job Loss

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A work sharing program allows an employer to have the option of reducing the hours and wages of all employees or a particular group of employees (such as a department) instead of laying off a portion of its workforce to cut costs. Workers with reduced hours and wages are eligible for partial UI benefits to supplement their paychecks.

Work sharing is a win-win-win strategy. A work sharing program benefits the state by mitigating further job losses. The employer benefits by reducing the high costs associated with turnover and maintaining continuity within the firm. And the employee benefits by maintaining wages and reducing the effects associated with long-term unemployment.

 

Legislative Activity

Response to Work Share Questions Following Presentation to Unemployment Insurance Oversight Committee – Summer Study| September 30, 2013
In Support of Work Sharing – Presented by Derek Thomas, Senior Policy Analyst, September 20, 2013

Testimony before the Unemployment Insurance Oversight Committee – Summer Study 
In Support of Work Sharing – Given by Derek Thomas, Senior Policy Analyst, September 30th, 2013

Testimony before the House Committee on Employment, Labor and Pensions In Support of HB 1288 - Work Sharing 
Given by Derek Thomas, Senior Policy Analyst, Indiana Institute for Working Families, February 19th, 2013


Resources

Source: National Employment Law Project and Center for Law and Social Policy.

Manufacturing in Indiana: How Work Sharing Benefits the Manufacturing Sector
States that adopt work sharing programs can preserve vital jobs in manufacturing.

Work Sharing in Indiana: Estimating Jobs Saved with Work Sharing During the Recent Recession
Between 2008 and 2010, more than 320,000 U.S. jobs were saved due to work sharing. If a program had been in place in Indiana in 2009—the worst year of the recession—more workers would have stayed on the job and more employers would have weathered the downturn while retaining qualified workers. Three scenarios are presented to show the potential effect of work sharing on jobs.

Seizing the moment: A Guide to Adopting State Work Sharing Legislation After the Layoff Prevention Act of 2012

Short-Time Compensation (STC) Grants – AmountsSpreadsheet

Draft Language and Commentary to Implement a Short-Time Compensation
Program

 

Work Sharing News

NWI.com 07/13/14

Indiana loses out in Work Share dollars

 

IBJ.com 03/01/14

A bipartisan solution for work force woes

 

IndyStar.com 02/25/14
Indiana may pass on federal dollars to start work share program

Inside Indiana Business 02/13/14
A Bipartisan Solution to Protect Hoosier Jobs

Journalgazette.net 02/09/14
Pence’s flip endangers work-share

USA Today 01/29/14
State Risks Losing Millions of Federal Work-Share Dollars

IndyStar.com 12/5/13
69,000 Hoosiers could lose jobless benefits

JournalGazette.net 12/3/13
Work-sharing program would ease Indiana’s unemployment woes

Indiana Chamber of Commerce 11/8/2013
Chamber Releases 2014 Top Legislative Priorities, Honors Small Business Champions

IIWF Blog 8/21/2012
Work Sharing: Our Response to the Critics

IIWF Blog 4/10/2012
A Second Chance at Saving Jobs in Indiana

TribStar.com 12/31/2011
Work-share program to avoid layoffs gaining support

Indiana Economic Digest 12/13/2011
Work-share program to avoid layoffs gaining support in Indiana Legislature