Shared Work Program Expanded to Help More Companies & Employees

Please see the following message from the Connecticut Department of Economic and Community Development:

Governor Lamont recently announced the expansion of the state’s Shared Work program to help companies navigate the economic impact of the COVID-19 pandemic.

The Shared Work program, managed by the Connecticut Department of Labor, helps employers reduce operating costs and avoid layoffs by temporarily reducing employees’ hours by 10-60%. Those workers receive a significant portion of those lost wages by receiving partial unemployment benefits.

In addition to reducing short-term costs, businesses benefit by avoiding the expense associated with recruiting, hiring, and training new employees when the economy recovers. Impacted employees benefit by retaining a connection to their employer (rather than being laid off), maintaining their health insurance and other benefits, and protecting the majority of their income.

Connecticut’s Shared Work program, which began in 1992, helps companies manage temporary downturns or lulls that can occur between contracts. It can also be used to help manage the impact of COVID-19.

Before the pandemic, Connecticut had approximately 290 companies enrolled in the program, protecting about 2,900 workers from layoffs. Since March, the program has benefited 1,340 companies and more than 24,300 workers.

 Key elements of the program include:

• Companies with two or more workers can qualify
• Employees' hours can be reduced up to 60%
• Shared work is available up to six months for each employee
• Companies can file for an extension at the completion of the six-month period
• The federal government will cover the unemployment costs traditionally covered by businesses until December 31, 2020.

Companies interested in participating in the Shared Work program may now apply with the Connecticut Department of Labor.

For more information and to begin the application process, click here.