CT Law for Avoiding Layoffs Available to More Companies

According to State Labor Commissioner Sharon M. Palmer, the Shared Work Program allows a business to reduce the work schedule of permanent, full time employees during a temporary decline in business.  The affected employees receive partial unemployment benefits to help supplement their lost wages.

”Since the program’s inception in 1992, businesses considered as ‘contributing employers’ – those that pay into the state’s Unemployment Insurance Program – have been eligible,” Palmer explains.  “A legislative change enacted as part of Public Act 13-66 that took effect earlier this month, expands the state’s Shared Work program by allowing all Connecticut employers meeting certain criteria to participate.”                                           

Prior to the Oct. 1 expansion of this program, ineligible employers such as self-funded non-profits were often faced with the need to lay-off a percentage of their workforce when facing business downturns. The change will give these employers the option of temporarily reducing hours and corresponding wages of all or some employees in order to avoid layoffs, retain skilled workers, remain prepared for business upswings, minimize training costs, and increase employee morale.

The Shared Work Program administered by the Connecticut Department of Labor is made available to Connecticut companies through special eligibility regulations.  Participating companies must have at least four full-time employees, cannot eliminate or reduce employee fringe benefits, and hours and wages cannot be reduced by less than 20 percent or more than 40 percent.

“Approximately 275 companies are currently taking advantage of the program,” Palmer said.  “These companies value their workers, but at this time do not have enough current business to keep their employee base operating at full force.”

The Shared Work Program helps the participating company better position itself for the future once its economic situation has stabilized, allowing companies to avoid costly retraining expenses that would result if layoffs took place.

Employees taking part must be able to work and available for full-time employment with the participating employer, and they must meet all regular unemployment compensation requirements.

For additional information about the Shared Work Program or to obtain an application, visit the Connecticut Department of Labor’s website at www.ct.gov/dol and click on Shared Work Program. Inquiries can be made by emailing DOL.SharedWork@ct.gov or calling (860) 263-6660.

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