Shared Work Compensation offers an alternative to employers facing a reduction in force. Instead of laying off employees, the employer reduces the hours of work each week among a specific group of employees. Wages lost to the worker as a result of reduced hours is supplemented by a partial unemployment benefit amount.
How Does the Plan Work?
An interested employer submits to the Commission a Shared Work Plan Application and Employee Participant List (PDF) by mail or fax. If the plan is approved, workers who qualify for unemployment benefits will receive both wages and Shared Work benefits. The workers will receive the percentage of their regular benefits that matches the percentage of reduction in the employer’s plan.
Benefits paid under shared work plans are charged back against employers’ accounts for use in computing general (experience) tax rates. Thus, they affect employers’ tax rates in the same manner and to the same extent as other chargebacks of benefits.
Sending Your Application
Send Shared Work Plan Application and Employee Participant List to:
Texas Workforce Commission UI Support Services 101 E 15th Street Austin, TX 78778