Understanding the Work Sharing Program - A Deep Dive into Workplace Law with Marco Lucido
Running a large business comes with its fair share of challenges, one of them being managing staff when business volume decreases. One option is to consider applying for the Employment Development Department’s Work Sharing Program, an alternative to mass layoffs. It allows employers to cut hours and wages, with the EDD paying employees partial unemployment benefits. The benefit of this program by the EDD is that it reduces overall business costs while retaining an already trained workforce for when business bounces back.
To be eligible for this program, companies must be legally registered in California with at least 10% of the regular workforce affected by a reduction in hours and wages. The reductions should range between 10% and 60%. The participating employees should still be provided with the same health and retirement benefits as before. The application for the program can be made either online or by mail. After approval, employers and employees are required to certify their eligibility with the EDD weekly. The work sharing plans are valid for a year but can be renewed if eligibility persists.
If you opt for layoffs instead of the work sharing program, you might be subject to federal and California Worker Adjustment and Retraining Notification Acts (WARN Acts). These laws demand that employers provide 60 days’ notice prior to the layoffs to several individuals, including affected employees, the Local Workforce Development Board, and the chief elected official of the city and county where the layoffs occur.
In conclusion, mitigating workforce challenges requires careful consideration of all available options. For any employer interested in learning more about the EDD work sharing program or if you are experiencing challenges with workforce reduction and layoffs, understanding how to get ahold of edd customer service can be essential. For a comprehensive guide, visit eddcaller.com for resources and tips on how to best contact EDD’s customer service department.