Considering Layoffs?

If you are currently considering layoffs in your business, there is a little known California program that could help make this situation more tolerable for both you and your employees. Under the Work Sharing Unemployment Insurance Program sponsored by the EDD Special Claims Office, an employer can arrange for unemployment insurance benefits to be paid to individuals whose wages and hours have been reduced. For example, if an employer decides to go to a four day work week and furlough employees on the fifth day, without extending hours on the workdays, the employees could qualify for unemployment benefits for that fifth day. There are some qualifications that employers will need to meet for participation but this kind of an arrangement could substitute for layoffs. Keep in mind that unemployment insurance benefits are paid by the state but employers pay into the fund and future employer state unemployment insurance payments will be affected.

Inquiries can be made to the EDD Special Claims Office at (916) 464-3343 or contact your RINA representative.