California amends Work-Sharing Program, accepts electronic applications

California has enacted legislation (Assembly Bill 1731) that makes a number of changes to the existing work-sharing program operated by the Employment Development Department (EDD) to help increase use of the program by employers. The changes are effective immediately, but will be repealed at the end of 2023, unless extended.

Background:

The work-sharing program gives employers the option of reducing employee hours during an economic downturn to avoid layoffs by providing the employee prorated unemployment benefit payments to replace the loss in wages.

Assembly Bill 1731:

Under Assembly Bill 1731:

• The EDD is required to create a portal on its website for the provision and receipt of the applications to participate in the state's work-sharing program.
• The EDD is required to accept an application to participate in, or renew participation in, the work-sharing program that is submitted electronically.
• Applications submitted by eligible employers between September 15, 2020 and September 1, 2023, to participate in, or renew participation in, the work-sharing program, upon approval by the EDD, are deemed approved for one year, unless a shorter plan is requested by the employer and approved by the EDD.
• The EDD is required to mail eligible employers a claim packet for each participating employee within five business days following approval of the application.
• For an employer that submitted a work-sharing-plan application online, the EDD must make online claim forms available to the approved employer for each participating employee within five business days following approval of the application.
• After the participating employer and employees complete and submit the documents in the claim packet, the EDD must establish an unemployment insurance claim.
• Participating employers and employees must meet the required unemployment insurance claim filing and weekly certification requirements.
• Employers are responsible for the completeness and integrity of each work-sharing certification form issued to a participating employee.

Compliance Recommendations:

Employers that wish to participate in the work-sharing program should visit the EDD website for eligibility rules and other information. Please contact your dedicated service professional with any questions.