Business Services

Shared Work Program: an alternative to layoffs

Group of professionals posing for picture

The Shared Work Program is an alternative to layoffs. Under an approved Shared Work program, workers who have their hours of work reduced may receive “short-time” Unemployment benefits for the lost hours of work, while continuing to work at reduced hours with a continuation of their health insurance, pension coverage, and other benefits.

An employer who has at least 10 employees may apply for approval to provide a Shared Work program. The purpose of such a program is to stabilize an employer’s workforce during a period of economic disruption by permitting the sharing of the work remaining after a reduction in total hours of work.

Log in to Employer Access to download the application form.
Complete the form with your employees' information and upload it via Employer Access.
If applicable, submit the Union Agreement via email to SharedWork@dol.nj.gov.

Helps employers continue to provide quality services by retaining skilled workers
Skilled, trained work teams can remain intact as business improves
Avoids the time and expense of hiring and training new employees
Helps maintain employee morale
For some employers, the Unemployment Insurance tax rate may be lower than if employees were totally unemployed

Workers keep their jobs and continue to earn wages
Workers retain their health insurance and retirement benefits
Reduction in pay is partially offset by Unemployment Insurance benefits
Employees maintain job skills

On January 17, 2014, the governor signed the Shared Work legislation, A4189, into law, P.L.2011, c.154 (C.43:21-20.3).

For more information, please call the Division of Employer Accounts at 609-633-6400, option 2, or email SharedWork@dol.nj.gov.

No, there is no fee to apply for this program.

Unfortunately, no. There must be 10 employees on your New Jersey payroll.

Not necessarily. Employers can apply for smaller work units, but each unit must have at least two participants. The same percentage reduction in hours must apply to all employees in the unit for all weeks.

Yes, but only after three months have elapsed, and only if approved by the Division. Employers must fill out another application for a Modified Shared Work Plan.

It is difficult to give an exact time frame. Regulations allow the NJDOL 60 days from receipt of the application to make a decision.

In lieu of ink signatures, employers can request electronic signatures, if possible. Otherwise, they can collect employee consent via email. Employers must retain all emails from employees affirming the Shared Work Program, and certify to the State that confirmation has been received from all remote employees.

There are no laws preventing employees to switch from collecting full unemployment benefits to participating in a Shared Work Program, but they cannot claim both. However, switching is a manual process, and with resources already strained, the payment of benefits would likely be delayed.