EDD Work Sharing UI Program

SASSFA can assist you in enrolling this California program that allows for the payment of Work Sharing Unemployment Insurance benefits to individuals whose wages and hours have been reduced. The program is considered a temporary and practical alternative to layoffs.

Here's an example:

Due to an economic downturn, an employer with 100 employees finds it necessary to lay off 20 employees. However, rather than lay off these employees, the employer participates in the Work Sharing program. The employer keeps all 100 employees on the payroll but reduces their workweek from five days to four days, thereby achieving the same desired 20 percent reduction in payroll. All 100 employees continue to earn wages for four days and also are eligible for Work Sharing benefits for the fifth (nonworking) day. The employer retains all trained staff and, when business improves, the employees resume their fiveday work schedule.

Who Qualfies?

Any employer who has a reduction in production, services, or other conditions that cause the employer to seek an alternative to layoffs may participate in the Work Sharing program. Some of the specific requirements are:

• A minimum of two employees, comprising at least 10 percent of the employer’s regular workforce or a unit of the workforce, must be affected by a reduction in wages and hours worked.
• The reduction in wages and hours worked also must be at least 10 percent.

How Do I Apply?

Contact SASSFA's Business Services Department at (562) 633-9511 ext. 239 where one of our representaves can help guide you through the application process. You can also message us.

Additionally, you can find out more and apply on your own by visiting the EDD website.