Work-sharing programs let businesses recall employees to satisfy Paycheck Protection Program rules without jeopardizing unemployment benefits.
Some entrepreneurs believe this creates a tough choice: Recalling workers from unemployment could foster ill will among workers who may make less money on the job; not doing so may tamper with loan forgiveness.Work-sharing programs — also known as short-time compensation programs — let entrepreneurs avoid those tradeoffs.
Instead of laying off workers to save money, business owners can reduce hours for a group of workers. The work-sharing program continues paying unemployment benefits at a proportionally reduced rate. This worker is likely making $962 a week on unemployment . That's more than the worker's $800 a week from a typical, 40-hour paycheck.
Under it, businesses are generally allowed to reduce employee hours by roughly 10% to 60%. And while Michigan is one example of a state permitting businesses to use the Paycheck Protection Program and state work-sharing program in tandem, that might not necessarily be the case for all states, experts said.
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