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 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. This program is provided through the Texas Workforce Commission's Unemployment Insurance Department.
An interested employer submits to the Texas Workforce Commission a Shared Work Plan Application and Employee Participant List 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.
Additonal information on the Shared Work Program can be found by visiting the Texas Workforce Commission website.