State Sen. Julie Lassa, D-Stevens Point, has introduced a work-share plan designed to ease the economic impact of layoffs.
Under the plan, presented Jan. 17 to the Unemployment Insurance Advisory Council, workers with reduced hours would receive partial unemployment checks to supplement lost income. Under existing law, workers are ineligible for unemployment benefits unless they are available for full-time work.
Lassa cited the example of a company that must reduce its workforce by 20%. The plan would give the company the option to reduce workers’ hours by 20%, rather than lay off 20% of its workers. Workers would then be eligible to claim unemployment insurance for their lost hours, plus keep their benefits.
She called work-share programs, now in effect in 25 states, a winning proposition for businesses, which retain skilled workers and can ramp up production more quickly when conditions warrant; employees who hold onto jobs, income, and benefits; and local economies, which retain purchasing power.
The Unemployment Insurance Advisory Council, which advises state government on unemployment compensation matters, intends to submit the proposal for review to the U.S. Department of Labor.
