Responding to COVID-19: Possible Alternatives to Layoffs
As employers everywhere are looking at how to deal with the impending changes to their businesses, the Texas Workforce Commission (TWC) has developed a voluntary “Shared Work” program to potentially reduce the number of layoffs. This program offers employers the opportunity to reduce payroll costs while decreasing the loss in pay for the affected employees.
Under the Shared Work program, TWC will provide unemployment benefits to employees whose hours are being reduced per the employer’s TWC-approved plan. In other words, the employees will have their lost wages supplemented by unemployment benefits that would not normally be available to them.
To be eligible for coverage in the Shared Work program, the reduction in normal weekly work hours for employees in an affected unit must be at least 10% and no more than 40%.
The TWC offers the following information:
You may have more than one plan. Employers can have multiple plans within the organization if each plan covers two or more employees.
You can renew the shared work plan after it expires. When the plan expires, TWC will notify the employer to renew the plan by submitting a new application.
You can implement a Shared Work Plan for one or more departments, shifts, or units. A unit consists of two or more employees. You have the flexibility to specify affected areas.
You may return individuals or groups to work full time for a week or two and then continue the plan. You have the flexibility to stop or continue as needed.
You may lay off some workers who were originally in the plan and keep the remainder in the plan, as long as they continue to meet requirements for an approved plan. You may replace an employee who leaves for personal reasons.
You may modify the original plan after reporting any changes in writing to TWC. Substantial changes will be reevaluated for approval.
Employers will need to apply for participation in the plan and obtain TWC approval before the affected employees can receive the benefits offered.
For full information about TWC’s Shared Work Plan and a link on applying for participation can be found at https://twc.texas.gov/businesses/shared-work.
Please let me know if I can be of assistance as you look at how best to deal with the effect of COVID-19 on your workplace and employees.
Here to work with you,
David Quan
DISCLAIMER: The Law Office of David J. Quan provides this communication for general information only. This communication does not, nor does it intend to, provide legal advice or create an attorney-client relationship. Each legal problem is unique, and past performance does not guarantee future results. Persons with legal issues should consult their attorney for specific advice regarding their individual situations