Department of Labor & Workforce Development

Shared Work Program: An alternative to layoffs

a woman sitting alone on a conference table at an office

On January 17, 2014, the governor signed the Shared Work legislation, A4189, into law, P.L.2011, c.154 (C.43:21-20.3). The Shared Work Program is an alternative to layoffs.

An employer who has at least 10 employees may apply to the division for approval to provide a Shared-Work program. The purpose of such a program is to stabilize an employer’s workforce during a period of economic disruption by permitting the sharing of the work remaining after a reduction in total hours of work.

Under an approved Shared-Work program, workers who have their hours of work reduced may receive “short-time” Unemployment benefits for the lost hours of work, while continuing to work at reduced hours with a continuation of their health insurance, pension coverage, and other benefits.

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