Avoiding Layoffs through Work Sharing

Let’s say you are an essential business trying to wade the rocky COVID-19 waters, and you are finding it is tough to keep all your employees on payroll. These are trained employees who are an asset to your company, and you are struggling with the concept of letting them go. Obviously, these employees would like to retain their jobs, and you would like to retain your employees. If this is sounding all too common, then Work Sharing may offer a viable solution for your business.

Here’s an example of how the program works:

An employer has 20 full-time employees in a unit, each of whom works 40 hours per week. Due to an unexpected reduction in business, the employer must reduce payroll by 25 percent. Instead of laying off 25% of the employees, the employer may apply for Work Sharing instead. If the Work Sharing plan is approved, then affected employees would receive 25% of their UI benefits while being paid for hours worked at the Work Sharing employer. When business improves, the employer has retained its trained workforce and may resume normal operations.

For companies facing a potential reduction in staff now or in the future, choosing a Work Sharing solution can help your business to make the best of a very difficult situation.

Work Sharing: Employer FAQ’s

Work Sharing: Employee FAQ’s

To learn more, visit the Work Sharing web page or email ui.worksharing@maryland.gov.