The California Employment Development Department (EDD) outlines the qualification and procedures for applying for the Work Sharing Program. An employer can apply for the Unemployment Insurance (UI) Work Sharing program as a temporary alternative to layoffs if a company’s work activity has been reduced.
Under Work Sharing, employees whose hours and wages have been reduced can:
- Receive UI benefits.
- Keep their current job.
- Avoid financial hardships.
To qualify for the Work Sharing program, an employer must meet all of the following requirements:
- Be a legally registered business in California.
- Have an active California State Employer Account Number.
- A minimum of two employees and at least 10 percent of your regular workforce, or a department of the workforce, must be affected by a reduction in hours and wages.
- Hours and wages must be reduced by 10 to 60 percent.
- Health and retirement benefits must stay the same as before, or they must meet the same standards as other employees who are not participating in Work Sharing.
- The employees’ bargaining unit must agree to voluntarily participate and sign the application for Work Sharing.
- Affected work units to be covered by the Work Sharing plan, and each participating employee, must be identified by their legal name and Social Security number.
- Employees must know in advance that you plan to take part in the Work Sharing program.
- Estimated number of layoffs to be avoided by participating in the Work Sharing program.
- All necessary reports and information are provided to the EDD.
All Work Sharing plans are approved for one year. Employers can apply for or renew a Work Sharing plan online.
If you need additional information on the Work Sharing Program, contact the EDD Special Claims Office at 1-916-464-3343.
If you are approved by your employer to participate in the Work Sharing Program and have questions about your claim, contact the EDD Special Claims office at 1-916-464-3300.
Work Sharing Program Homepage