What is Shared Work Compensation?
Shared Work Compensation offers an alternative to employers facing a reduction in force. Instead of laying off employees, the employer reduces the hours of work each week among a specific group of employees. Wages lost to the worker as a result of reduced hours is supplemented by a partial unemployment benefit amount.
How Does the Plan Work?
An interested employer submits to the Commission a Shared Work Plan Application and Employee Participant List by mail or fax. If the plan is approved, workers who qualify for unemployment benefits will receive both wages and Shared Work benefits. The workers will receive the percentage of their regular benefits that matches the percentage of reduction in the employer's plan.
Benefits paid under shared work plans are charged back against employers' accounts for use in computing general (experience) tax rates. Thus, they affect employers' tax rates in the same manner and to the same extent as other chargebacks of benefits.
Send Shared Work Plan Application and Employee Participant List to:
Texas Workforce Commission
UI Support Services
101 E. 15th Street
Austin, TX 78778
(512) 936-3250
For questions about submitting a Shared Work application call (512) 463-2999
Helpful Shared Work Plan Links
- Frequently Asked Questions
- Shared Work Plan Application and Employee Participant List (Word)
- Shared Work Plan Application and Employee Participant List (PDF)
IMPORTANT NOTICE: If your employee has an overpayment balance from a previous claim, all benefit overpayments must be repaid prior to payments being released to the employee. Any benefits the employee is eligible to receive will be applied to the overpayment until it is cleared.
Unemployment Compensation and Tax Information, a booklet sent to employers, provides detailed information on the Unemployment Insurance program. Please be sure to read this entire booklet so that you are aware of your rights and responsibilities regarding unemployment insurance.
