As more companies cut hours, many are beginning to run out of their Work Share funds.
Last November, 22.3% of companies participating in the Work Share program were notified that they would soon be running out of their funds.
Before 2009, only one or two companies would experience that problem each year and quit the program, the Employment Department says. The program is meant to prevent layoffs by providing unemployment benefits for employees whose hours are reduced.
Each business pays a certain amount in taxes each year based on a variety of factors, and the tax money is stored for every company individually in case any employees need unemployment benefits.
But when companies stay on the program for an extended period of time — and they have been, [Employment Department spokesman Craig Spivey] said — it can drain the employer’s fund. If that happens, and employees are still receiving unemployment checks from a company’s empty fund, the company must reimburse the state for any extra money spent.
Read the full story at The Bulletin.
{biztweet}Oregon Work Share{/biztweet}
