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 SharedWork@dol.nj.gov.