Additional Expansion of Shared Work Program Approved

Change enables more small employers to participate

Last year, CBIA’s HR News reported on an expansion of the Connecticut Department of Labor’s Shared Work program. The expansion permitted nonprofit, reimbursing employers to participate, giving these employers the option of temporarily reducing hours and corresponding wages of all or some employees in order to avoid layoffs, retain skilled workers, remain prepared for business upswings, minimize training costs, and increase employee morale.

A further expansion of the program was predicted last month, and on May 27 the state legislature’s regulation review committee signed off on the change that will open up this valuable option for more smaller employers to remain flexible with their workforce and ride through temporary downturns in business while preserving employment of key employees.

Until this most recent change, employers had to reduce the hours of four or more employees in order to participate. The approved regulatory change, effective July 1, 2014, lowers the threshold to just two or more employees: meaning more small employers would be able to participate.