Small companies with seasonal workflows, such as winter heating oil sellers, often struggle with the annual hiring and layoff cycle. Employees in the state of Pennsylvania have an alternative to such employee layoffs called the Shared-Work Program. This allows an employer to temporarily reduce staff hours while the employee is simultaneously compensated a percentage of unemployment
weekly benefits during the reduced schedule time period.
Taking the recruiting, hiring and training burden off of employers by allowing them to keep their trained staff during slow seasons has benefited over 200 businesses in the area since the fall of 2018.
Employers requesting this program will need to file a plan with the Department of Labor and Industry that details the group of employees that will incur the same percentage of reduced hours. Those staff members will be compensated for that percentage of unemployment and have the ability to keep their jobs.
At the end of the slow cycle the employee terminates the plan and employers go back to their regular hours.
Eligible employers must have a record of having filed all UC Tax reports and paid all amounts due under the PA UC law. Also required is a positive reserve balance and paid wages for 12 consecutive quarters.