The State of Michigan is reminding businesses to use the state’s Work Share program as they begin to reopen amid the coronavirus outbreak. The program helps employers experiencing economic pain to retain their workforce and bring employees back.
The program allows employers to bring employees back with reduced hours while those employees collect partial unemployment. Employers can also utilize the flexible program. If business demand is down, employers participating in Work Share can preserve their workforce while reducing hours and wages by 10 – 60%.
Under the program, a worker gets a reduced salary but is given a percent of their state benefits – plus the extra $600 in federal payments. So, if a worker’s weekly wages are $1,000 but the employer needs to reduce their salary and hours by 30%, the work share program would give them 30% of their state unemployment benefits plus the extra $600 in federal money through July 2020. With Work Share, the employee would earn $1,408/week through July 2020 vs. $962 without Work Share.
Work Share Requirements:
· Employers participating in Work Share cannot modify employees fringe benefits.