With the economy struggling to make a comeback and unemployment still level in Pennsylvania, many business owners are looking for ways to cut expenses without having to lay off employees. A new Pennsylvania program called Shared Work may be the answer for some businesses.
Under Pennsylvania’s Shared Work program, an employer must make application to participate. Once approved, the employer may temporarily reduce the hours of a group of employees. The employees, if otherwise eligible for unemployment compensation (UC) benefits, will receive a percentage of the weekly UC benefits while working reduced hours. Employers may reduce employee hours 20 to 40 percent under this program.
Some advantages of the Shared Work Program:
- Employers retain experienced workers
- Administrative and training costs of hiring new employees later is eliminated
- Employee morale can remain high
- More recently hired workers who would have been most susceptible to layoff are retained
- Employees retain skills and advancement opportunities
Some Disadvantages of the Shared Work Program:
- Valuable employees who are able to locate full-time employment elsewhere may do so
- Overhead costs may not be reduced proportionately to the reduction in worker hours.
- Work scheduling may be more difficult.
For a more thorough analysis of whether the Shared Work program is a good fit for your business, or for help with any other matter related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you. Contact us today at (412)765-0546 or firstname.lastname@example.org.