An Alternative to Layoffs - Shared Work
Rick Leibowitz, director of our North Country SBDC, recently shared this with me: http://www.labor.state.ny.us/ui/dande/sharedwork1.shtm This looks to be something that is worth investigating by some of our clients. It describes a NYS Department of Labor program that encourages employers to consider shifting staff to a four-day work week, with the employee earning qualified unemployment wages for the fifth day. It argues that rather than making wholesale layoffs, a company might be able to cope during a down period by essentially reducing its payroll by 20% for a given period of time. The theory continues that, once business improves, a company isn't faced with the costs of hiring and training additional staff. Has anyone had any experience with this, or had clients who've given it a try?