Download
1 / 25
250 likes | 359 Views
SHARED-WORK On June 17, 2011, Pennsylvania Governor Corbett signed into law State Bill 1030, designated as ACT 6 of 2011. Act 6 of 2011 added Shared–Work, Article XIII, to the PA UC Law. What is the Shared-Work?.
E N D
SHARED-WORKOn June 17, 2011, Pennsylvania Governor Corbett signed into law State Bill 1030, designated as ACT 6 of 2011. Act 6 of 2011 added Shared–Work, Article XIII, to the PA UC Law.
What is the Shared-Work? • “Shared-Work” is an alternative method of unemployment insurance. Its goal is to reduce complete layoffs by paying partial unemployment benefits to employees who normally would not be eligible for regular UC. Under the partial benefit credit provision currently in the UC Law, a full-time employee whose hours are only slightly reduced generally would not qualify for benefits due to excessive weekly earnings.
Who can participate in the Shared-Work Program? All Pennsylvania Employers can participate as long as they meet the following three requirements: • The employer has paid all contribution, reimbursement, interest, and penalties due on their account. • Contributory employers have a positive reserve account balance. • The employer is current with all quarterly reports, and has paid wages for the last 12 consecutive calendar quarters.
The Shared-Work plan applies to one affected unit (a department, shift or other organizational unit of two or more employees that is designated by an employer to participate in a Shared-Work plan). • The following employees may NOT be participating employees: • An employee who has been employed in the affected unit for less than three months prior to the date the employer applies for approval of the shared work plan. • An employee whose hours of work per week (after the reduction of hours) are 40 or more hours per week.
Additional Shared-Work Plan Requirements • There are no fewer than two participating employees determined without regard to corporate officers. • As a result of a decrease in the number of hours worked by each participating employee, there must be a corresponding reduction in wages. • If any participating employee is covered by a collective bargaining agreement, the Shared-Work plan must be approved in writing by the collective bargaining representative. • The Shared-Work plan must not affect the fringe benefits of any participating employee not covered by a collective bargaining agreement. • The effective period of the Shared-Work plan must not be more than 52 consecutive weeks.
Additional Shared-Work Plan Requirements Continued • The effective period of the Shared-Work plan combined with effective periods of the participating employer’s prior Shared-Work plans must not equal more than 104 weeks out of 156-week period. • The reduction of work percentage shall be no less than 20% and no more than 40%. • The reduction of work percentage shall be the same for all participating employees. • The reduction of work percentage shall not change during the period of the Shared-Work plan unless the plan is modified and approved by the department.
A Shared-Work plan must include the following required information: • The employer’s assurance that it will provide reports to the Department relating to the operation of its Shared-Work plan at the times and in the manner prescribed by the Department and containing all information required by the Department, including the number of hours worked each week by participating employees. • The employer’s assurance that it will not hire new employees in, or transfer employees to, the affected unit during the effective period of the Shared-Work plan. • The employer’s assurance that it will not lay off participating employees during the effective period of the Shared-Work plan, or reduce participating employees’ hours of work by more than the reduction percentage during the effective period of the Shared-Work plan, except in cases of holidays, designated vacation periods, equipment maintenance or similar circumstances.
Required Information Continued: • During the requested effective period of the Shared-Work plan, the employer should list the week or weeks where the participating employees are anticipated to work fewer hours than the hours designated in the Shared-Work plan. • The employer’s certification that the implementation of a Shared-Work plan is in lieu of temporary layoffs that would affect at least 10% of the employees in the affected unit and would result in an equivalent reduction in work hours. • The employer’s assurance that it will abide by all terms and conditions of Article XIII of the Law, department rules, and the Shared-Work plan approved by the Department.
Shared-Work Plan • Benefit Eligibility Requirements for Participating Employees
Unemployment Compensation Benefit Payments Requirements for Participating Employees in a Shared-Work Plan: • Unemployment Compensation benefits shall be payable to all participating Shared-Work employees for the weeks within the effective period of an approved Shared-Work plan as long as the employees worked the number of reduced hours determined by participating employer. • The weekly benefit amount is reduced by the same percentage as the work hours. For example: if an employee’s/claimant’s hours are reduced by 20%, the employee would receive 20% of what would be their normal weekly benefit amount for UC if they were completely unemployed.
Except as follows: • The department shall not deny compensation to a participating employee for any week during the effective period of the Shared-Work plan by reason of the application of any provision of this act relating to active search for work or refusal to apply for or accept work other than work offered by the participating employer. • A participating employee satisfies the requirements of Section 401(d)(1) if the employee is able to work and is available for the employee’s normal weekly hours of work with the participating employer.
A participating employer may apply to the department for approval to modify an approved Shared-Work plan to meet changed conditions. What changes would require a plan modification? • Adding or removing participating employees from the active Shared-Work plan. • A change in the reduction of participating employee hours. • A change in the effective period.
What happens if my application to modify is disapproved? • Your previously approved Shared-Work plan will remain in effect (as long as it still meets the Shared-Work requirements). Can I appeal a modification disapproval decision? • No, these decisions are not appealable documents. When can I re-apply for a modification? • Right away. There is no waiting period to re-apply.
Who can terminate a Shared-Work plan? • The participating Shared-Work employer • The department
Termination of a Shared-Work Plan by the Employer How can I terminate my Shared-Work plan? • The participating Shared-Work employer has the right to terminate the active Shared-Work plan at any time by notifying the department in writing.
Termination of a Shared-Work Plan by the Department What would cause the department to terminate my Shared-Work plan? • The approved Shared-Work plan is not being executed according to it’s approved terms and conditions. • The participating employer fails to comply with the assurances given in the approved Shared-Work plan. • The participating employer or a participating employee violates any criteria on which approval of the Shared-Work plan was based.
Employers Responsibilities in a Shared-Work Plan • The Shared-Work employer is 100% responsible for the benefit charges for all participating employees. • Distribute all UC Applications to all participating employees. Instruct those employees to fill out the applications and return to the Shared-Work employer in a sealed envelope with their name written on the front of the envelope. • Collect all sealed envelopes from the participating employees and submit them to the department in one package on behalf of the employees. • Complete mail claim forms for benefits on behalf of the participating employees on a biweekly basis. • Notify the department of any plant shut downs, or resumption of business following a shut down. • Notify the department of any employment separation that involves a Shared-Work participating employee. • Notify the department in writing to terminate the active Shared-Work plan.
Shared-Work Forms Where can the employer find all of the necessary forms for shared-work? • All necessary forms associated with the Shared-Work program will be located on our website at www.uc.pa.gov.
Questions Where can employers and claimants find additional information on the shared-work program? • Our website at www.uc.pa.gov. • Call 1-877-785-1531
