Employers' Frequently Asked Questions - Work Sharing - Unemployment Insurance

Work Sharing Overview

1. What is Work Sharing (WS)?
It is a voluntary program that provides an alternative to layoffs for employers confronted with a sharp, temporary decline in business.

• Under the program, an employer may temporarily reduce employee work hours by 10% to 60% (either among a unit(s) or throughout the business).
• The employees working the reduced hours receive partial unemployment insurance (UI) benefits to supplement the lost wages. Employees may choose whether they want to participate in the WS program.
• WS may also be used to bring back a temporarily-laid off workforce (by rehiring former employees at reduced hours). See question #2 below.

To be considered for WS, an employer must apply (see question #6 below). For more, see the Work Sharing - A Layoff Aversion and Reopening Unemployment Insurance Program webpage.

2. If you laid off employees, can you re-hire them and then do WS?
An employer can re-hire its employees and use the WS program. For example, an employer may lay off employees during an economic downturn and become aware of WS after the layoffs.

Those employees can return to work under an approved WS plan. Any UI benefits the employees received will be adjusted based on the percentage of reduced work hours.

3. What is the difference between WS and just having my employees apply for partial unemployment?
There are situations in which an employee would not receive UI benefits without being covered by a WS plan. Utilizing a WS plan also encourages employees to remain employed with their current employers.

• To be eligible for regular UI benefits, a claimant cannot earn more wages in a week than their weekly benefit amount. A claimant refers to an individual who submits a claim for UI benefits.
  • That requirement does not apply to employees covered by a WS program (Maryland UI Law 8-1207.e).
• Claimants must be able, available, and actively seeking full time work to be eligible for UI benefits. Additionally, claimants are required to accept any offers of suitable work.
  • If there is a WS plan in place, WS employees are required to be available to work all of the hours that the WS employee has available for them. They do not have to meet work search requirements or accept suitable work from individuals other than the WS employer.

NOTE: WS UI benefit payments are charged to the employer and may affect the employer’s experience rating (see #11 below).

Plan Eligibility Requirements

4. What are the requirements to be approved for WS?

An employer must:

* Requirement can be waived with good cause.

5. What are the requirements for an employee to participate in WS?

An employee must have worked for the employer for at least three months and ordinarily work between 20 and 40 hours per week (including full-time, part-time, exempt/salaried, or hourly employees).

NOTE: Employees may choose whether they want to participate in WS. However, if an employee chooses not to participate in WS and then applies for regular UI benefits, the employee may not be eligible. This is because the employee declined available work by choosing not to participate in WS.

• Employees must also meet the eligibility requirements for regular Maryland UI benefits, with a few exceptions.
  • WS employees are not required to meet active search for work requirements and the requirement to accept offers of suitable work (other than from the WS employer).
  • If there is a WS plan in place, employees have to be able and available to work the hours that are provided to them by their WS employer.
• Seasonal and temporary workers are not eligible for WS.
  NOTE: Workers who live in a neighboring state and commute to Maryland may participate in WS (provided they meet all other eligibility requirements).
• Workers with hours that fluctuate by customer demand (sent home early on a slow night or asked to work late on a busy night) may participate in WS. The employer should ensure that when schedules fluctuate, that the employees’ reduction in hours still falls within the 10-60% range to be eligible for WS.

For more about employee requirements, see the Work Sharing Information for Employees FAQs.

6. Do I have to inform my employees that I am applying for WS?
Union Notice - Before applying for WS, an employer is required to receive written approval from any applicable collective bargaining agent. This approval (from the union's bargaining agent) must be submitted with the WS application.

Employee Notice - If the affected employees are not covered by a collective bargaining agreement, then advance notice of the plan must be provided to the employees who will be subject to the plan. If advance notice of the plan is not feasible, a detailed explanation as to why advance notice is not feasible must be provided.

NOTE: Participating employees must sign the WS application to acknowledge that they are aware of the plan and the reduction in their work hours.

Applying for Work Sharing

7. How do I apply for WS?

You can apply for WS by completing the application and participant list and returning them to ui.worksharing@maryland.gov.

Please submit these items seven to 15 calendar days before your requested WS start date. Applications will not be reviewed that have start dates more than 15 days in the future.

Plan Approval - A decision is often made within seven days of receipt of the completed WS application. You will be notified of the final decision, usually by email. If approved, an UI representative will contact you with details.

WS Plan Denied - If your plan is not approved, your decision will provide the reason. All decisions are final and may not be appealed. You may submit a new application for consideration 15 days after the first denial decision.

8. When does the WS plan begin?

On the WS plan application, you will specify the requested start date of the WS plan (which shall begin on a Sunday, no earlier than seven days after the plan is submitted).

You will also include an expiration date on the application (which is no more than 6 months after the effective date of the WS plan). The plan must end on a Saturday.

After the Work Sharing Plan is Approved

9. What do I need to do to ensure benefits paid to my employees?
WS benefits will not be released to an employee until the employer and the claimant certify the hours worked.

If approved, the employer is required to submit a Weekly Certification Claim form of hours worked to ui.worksharing@maryland.gov on a weekly basis. This will include the employee names, information, hours worked, etc.

NOTE: The employer is responsible for ensuring that participating employees in each affected unit work the same number of reduced work hours. The hours worked must correspond to the reduction in the approved plan. If the Division discovers inconsistencies with weekly reported hours, the plan will be reviewed and may be revoked.

10. Will the benefits my employees receive under WS be charged to my employer UI account?
Yes. WS benefits are charged against (experience-rated) employer accounts in the same manner that regular benefits are charged. For questions about tax rates, contact dluicdexperiencerating-dllr@maryland.gov or call the Employer Call Center at 410-949-0033 (Monday to Friday, 8:00 a.m. to 4:30 p.m.).

To learn more about UI benefit charges, see the Annual Tax Rate and Benefit Charge Information FAQs and the Employers’ Quick Reference Guide.

11. How are UI benefits calculated for the WS program?
Employees who are participating in WS will receive a partial weekly benefit amount (equal to the percentage that their work hours were reduced). For example, if an employee’s work hours are reduced by 30%, the employee will be eligible for 30% of their weekly benefit amount.

You will continue to pay regular wages equal to the number of hours worked each week.

12. What happens if there is paid time off during a WS week?
Paid time off is considered worked time for the purpose of calculating WS benefits when:

• The employee did some work during that week; and
• The employee worked all available hours.

13. Can I add additional units to my WS plan?
Yes, employers can add new units by either modifying an existing plan or submitting a new plan for approval.

14. Can my plan be discontinued?
Yes. You may stop your plan at any time. To restart your plan, however, you must submit a new WS application.

• You may return your employees to normal work hours and then return to WS status only one time during the plan. For questions, contact ui.worksharing@maryland.gov.
• At the discretion of the Division, the plan may be stopped if you are not following the agreement or if you are found to be out of compliance. The decision to rescind a plan is final and cannot be appealed.

For questions about WS, contact ui.worksharing@maryland.gov.