A Shared Work Plan May Be the Best Plan for Getting Your Business Through COVID19
March 24th, 2020 by David Minces
As businesses are making tough employment decisions due to the economic repercussions of coronavirus, the Texas Workforce Commission (TWC) is encouraging them to consider using Shared Work programs. The Shared Work program is administered by the TWC and is a great alternative to layoffs. Essentially, the TWC will pay up to 16 hours (40%) of an employee’s wages per week, if the business must reduce employees’ hours.
Businesses are eligible if they meet the following criteria:
- At least 10% of the employees in an affected unit will have reduced hours.
- Employees’ hours must be reduced by 10-40% of their normal weekly hours.
- Employer must continue to provide any fringe benefits (health insurance, paid vacation, sick leave, etc.) already offered.
Employers can submit a Shared Work plan for approval from the TWC through the Employer Benefits Services website.
To complete a Shared Work plan application, employers will need:
- The company name, address, telephone number, fax number, and the contact information for an authorized representative with signature authority
- TWC Tax Account Number
- The union name, local union number, and the union official’s name for any union affected by the plan
- The names and Social Security numbers of all participating employees the employer would like to enroll in the plan
- An estimate of the number of employees who would be laid off if the Shared Work plan was not approved
More information about Shared Work plans and the application process is available here. As always, Minces PLLC is happy to help you navigate your business through this unprecedented time. If you have any questions about Shared Work plans or other COVID-19 related business concerns, do not hesitate to submit a contact form through our website here or book an appointment using our scheduling page so that we can set up an appointment to advise you.
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