| |
Shared Work: One of the NYS Department of Labor’s “Best-Kept” Secrets
By M. Patricia Smith, Commissioner
New York State Department of Labor
October 2009 Issue
Employers have called the Shared Work program one of the NYS Department of Labor’s “best-kept secrets.” We don’t want it to be a secret any longer.
The Shared Work program is a win-win for everyone concerned. Rather than lay off a percentage of workers to cut costs, an employer can use Shared Work to reduce the hours of all or a particular group of employees. Employees receive partial unemployment insurance benefits to compensate for their lost wages, and continue to receive health insurance, retirement, vacation pay, and other fringe benefits. Employers save money, but when business picks up their skilled workforce is in place and ready to go – saving recruiting, hiring and training costs for new employees.
The Shared Work program has shown steady growth. So far in 2009, 10 firms in Clinton County are participating, involving 246 employees. For 2008, 3 firms and 184 employees participated, and for 2007, one firm and 20 employees participated. Statewide, approximately 2,000 employers are now participating, and we estimate that about 10,700 jobs have been saved this year alone by the Shared Work Program.
Participating companies are enthusiastic about Shared Work. Here’s what Debi Pettit, Director of Human Resources for Schonbek Worldwide Lighting in Plattsburgh has to say: “The Shared Work Program gave us an alternative to layoffs when the economy slowed earlier this year. Our business relies on skilled employees who handcraft every Schonbek lighting fixture. By reducing our employees’ hours through Shared Work instead of laying off, we were able to meet our customers’ needs and keep our workforce intact. While the reduced hours certainly had an impact on our employees, it was great to have Shared Work to offset some of that impact. Our employees knew we were doing everything we could to keep them working.”
To be eligible for the Shared Work Program, you must have at least five full-time (35-40 hours per week) employees and have paid unemployment insurance tax for at least a year before applying. The reduction in work hours must be between 20 and 60 percent, and there are some other requirements. To find out more and to apply for the Shared Work program, contact the Liability and Determination Section of the NYS Department of Labor at (518) 457-5807 at least two weeks before you want to begin. Information is also available on our website at www.labor.state.ny.us/ui/dande/sharedwork1.shtm.
At the Department of Labor, we want to keep your business in the black – and keep New Yorkers working. If you think you may need to lay off workers, give us a call about Shared Work first. You may find it’s just what you need to cut costs now, but be ready when business improves. 
BACK TO HEADLINES |
|
