For Immediate Release
March 5, 2012
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McIlhinney Shared-Work Proposal Approved by U.S. Department of Labor

Layoff prevention program to be implemented immediately

HARRISBURG – The U.S. Department of Labor recently approved the state's proposal to create a new shared-work program to help employers prevent future layoffs.

The new program, which was introduced in the General Assembly by Sen. Chuck McIlhinney (R-Bucks and Montgomery), would allow employers who are facing the prospect of layoffs to implement a temporary shared-work program. The program would allow employers to reduce employee hours and allow employees to receive unemployment compensation benefits for their lost time.

Pennsylvania Secretary of Labor and Industry Julia Hearthway recently indicated that her Department would begin accepting shared-work program applications immediately. More information on the new program is available by calling the Pennsylvania Department of Labor and Industry at 877-785-1531.

"Since the beginning of the recession, too many employers have had no other choice but to let go of quality workers, leaving many families without a long-term source of income," McIlhinney said. "This program will keep more of our region's skilled and dedicated employees in the workforce instead of the unemployment line."

Under a shared work program, employers can reduce normal weekly hours by 20 to 40 percent. The total shared-work plan cannot exceed 52 weeks, and no employer will be permitted to take part in shared-work plans for more than 104 weeks out of a 156-week period.

The shared-work plan will be voluntary for employers and must comply with all applicable federal labor laws. Participating employers must also agree to not lay off employees during the term of the plan and not hire or transfer new workers into an affected unit.

The program was created by Act 6 of 2011.

CONTACT: Heather Cevasco (215) 489-5000