The Texas Shared Work program allows employers to reduce employee hours instead of laying off workers during economic downturns. Affected employees work reduced schedules while receiving partial unemployment benefits to supplement their reduced wages. Texas employers may use Shared Work to retain trained workers, maintain productivity, and avoid the costs of rehiring when conditions improve.
How Shared Work Operates
Under the Texas Shared Work program, employers submit a plan to the Texas Workforce Commission proposing reduced hours for a group of employees. Approved employees work their reduced schedule and file for partial unemployment benefits to make up a portion of lost wages. The employer retains the workforce, and employees keep their jobs and benefits.
Key Requirements
- Hour reduction: 10% to 40% of normal weekly hours
- Minimum participants: At least 10% of the affected workforce unit or 2 employees, whichever is greater
- Benefits continuation: Employer must maintain health insurance and other benefits during the Shared Work period
- Plan duration: Plans may be approved for up to 12 months
Benefits for Texas Employers
Shared Work helps employers avoid layoff costs including severance, rehiring, and retraining expenses. Employees maintain their skills and institutional knowledge, and the business is positioned to ramp up quickly when conditions improve. The program does not increase the employer's unemployment tax rate beyond what a full layoff would cause.
How to Apply
Texas employers can submit Shared Work plans through the Texas Workforce Commission. Plans require information about the affected workforce unit, proposed hour reductions, and the expected duration of the reduction. TWC typically processes applications within 2-3 weeks.
Find More Programs for Your Business
The Shared Work Program for Texas Employers is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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