Shared Work - alternative to layoff

What you need to apply

Information you need to complete the application:

• The number of layoffs prevented by your participation in Shared Work.
• Your proposed start and end dates must be for at least two months but not more than one year. (You can extend your plan up to an additional year.)
• The name, Social Security number, and original hire date of each participating employee.
  

  Select employees that you intend to retain long term. If you lay off an employee who is on Shared Work, your plan may end.

• The proposed hours each participating employee will work each week for the duration of the plan.
  

  The proposed hours worked by each employee must be at least 50 percent and no more than 80 percent of their normal weekly hours. (An exception is that the plan may provide for a vacation shutdown for up to two weeks.)

• An owner or officer must sign the completed application.

How to apply

After you meet the qualifications, the next step is to complete the application and your list of participants.

Application – one of the following must sign the completed application:

• Privately owned company – owner or officer
• Publicly held company – board member
• Nonprofit organization – board member or executive director
• Government entity – elected official or major non-tenured policy maker
  

Participant List and instructions – complete the form and attach it to your email as an Excel file.

Submit your completed application and participant list by email to shared.work@state.mn.us

What happens next?

• Within 15 days after you submit your application, we will email you the status and further instructions.
• After your application is approved, it’s your responsibility to manage your Shared Work Plan.
• Your Shared Work application will not be approved if we believe it was submitted for a purpose other than preventing layoffs due to lack of work.

Employer responsibilities

Unlike a full layoff, with Shared Work your workers will be in daily contact with your supervisors, managers, and human resources professionals. Successful Shared Work plans require that you understand how your Shared Work plan works, what your workers need to do to receive benefits, and that you communicate regularly with your workforce.

Communicating with your workers:

You must provide written notice to each employee on your participant list before the approved start date of your plan.

• The notification must inform the employee of the Shared Work plan terms and their right to apply for unemployment benefits.

You are the primary source of Shared Work information for your employees.

• They will come to you first with questions
• You know more about your workers and your workplace than we do, so you are in a better position to help them understand how your plan affects them.
• Your designated representative should contact us with any questions.

We are available to answer your questions and help make sure your Shared Work plan operates as smoothly as possible.

If anything changes:

Your Shared Work plan is a binding contract between you and the Unemployment Insurance Program. You must notify us and get approval before any change is made to your plan. This includes:

• Scheduled shutdowns
• Changes to the end date of a plan
• Changes to owner/officer information

You can contact us at shared.work@state.mn.us to request changes to your plan.

Modify your plan

• Your designated representative can request to modify your plan:
  • Adjust participant hours
  • Add or remove participants.
  • Add a uniform shutdown.
  • Modify the end date of the plan.
  • Cancel the plan.
• If a participating employee is separated from your employment for any reason, you must notify us at shared.work@state.mn.us
• You can cancel a Shared Work Plan at any time with seven days notice.
  • An owner or officer must sign the notice. Email your notice to shared.work@state.mn.us.
  • If your plan is cancelled before the expiration date, we cannot approve a new plan for 60 days.
• If you cancel or request modification to a Shared Work Plan you must provide written notice to each participating employee. Notice to employees must be at the same time you notify the Shared Work Program.

Employee questions

Here are answers to some questions your employees may ask:

• They must apply and be approved for unemployment insurance benefits. Information to apply online or by phone is on our website at www.uimn.org
• They must request a benefit payment online or by phone for each week they work reduced hours. To receive a benefit payment they must meet qualifications each week.
• They are eligible for benefits each week they work 32 hours or less (combined hours for all employers) and meet any other weekly eligibility requirements.
• After they apply, we will mail them a Determination of Benefit Account letter that states their weekly and maximum benefit amount. The weekly amount they receive is usually about one-half of their lost income due to reduced hours, up to a maximum benefit amount allowable by law.

When your application is approved, we will send you a handout to give your employees on how they can apply for benefits and request benefit payments.