Maine State Chamber, Department of Labor outline WorkShare program as an alternative to COVID-19 layoffs

For Immediate Release
​Tuesday, June 16, 2020

Media contact: Jen Webber
​Cell: 207-939-0213

Maine State Chamber, Department of Labor outline WorkShare program as an alternative to COVID-19 layoffs

WorkShare can help employers and employees stay connected during temporary slowdowns such as the current COVID-19 pandemic

​AUGUSTA, MAINE -- The Maine State Chamber of Commerce hosted a free webinar Tuesday with Maine Department of Labor Commissioner Laura Fortman and Deputy Commissioner Kim Smith on WorkShare. WorkShare is a program that allows employers to retain employees during slowdowns in lieu of layoffs by temporarily reducing work hours by 10-50%. To help offset the loss of income, affected workers can collect a partial, or modified, unemployment benefit. Webinar presenters discussed WorkShare eligibility requirements for employers and employees, the benefits of WorkShare, how employers can set up a WorkShare program, and more.
 
Several factors determine an employer’s eligibility for WorkShare. First, the reduction in hours must be temporary and not related to a seasonal or intermittent downturn. Employers must ensure employees’ hours are reduced by at least 10%, but not more that 50%. Additionally, the reduction in hours also must avoid a layoff of at least 10% of the workers in the affected unit for 2-6 months, affect a unit of the business that normally works on a full-time basis (and includes part-time workers who work a set consistent schedule), and include two or more participating employees.
 
For an employee to be eligible to participate in WorkShare, they must work in an affected unit of the business, have earned enough wages in the last 18 months to meet the regular qualifications for state unemployment benefits, and be able and available to work their normally scheduled hours for their employer. Benefits are paid on a percentage equal to the reduction in hours. For example, an employee who has lost 25% of their hours would receive 25% of their normal weekly unemployment benefit.
 
Under WorkShare, employees currently will receive the $600 additional weekly payment through the Federal Pandemic Unemployment Compensation (FPUC) program, on top of partial regular unemployment.
 
Employee unemployment benefits under WorkShare are not charged to the employer right now due to COVID-19 emergency legislation passed in mid-March that is in effect until one month after the end of the Governor’s declared civil emergency.
 
“It is important that Maine employers and workers are aware of the benefits of WorkShare during a temporary slowdown like we are experiencing due to the COVID-19 pandemic,” said Maine Department of Labor Commissioner Laura Fortman. “For employers, taking advantage of WorkShare can help them keep trained workers instead of having to institute layoffs, furloughs, or let employees go entirely. For employees, it can help them stay connected to their jobs and maintain their skills, while offsetting the loss of income with a partial unemployment benefit.”
 
“There are several benefits to WorkShare and the Maine State Chamber thanks the Department of Labor for sharing the ins and outs of the program in today’s webinar,” said Peter Gore, executive vice president at the Maine State Chamber of Commerce. “During this unprecedented pandemic, many Maine employers are navigating entirely new territory on many fronts, including how to stay connected to their workforce. The WorkShare program can be very helpful in achieving this.”
 
Employers interested in learning more should call WorkShare’s contact line at 207-623-6783. Key information they will need when they call is the number of employees they would like to participate and percent reduction in work hours they propose. From start to finish, the application process generally takes from 2 to 14 days. Once approved, participating employees are required to file WorkShare claims verified by their employer each week.
 
A recording of the webinar can be found at https://www.mainechamber.org/webinar08.html.
 
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