skip to main content

California

These resources – like the public health crisis itself – are constantly evolving and are only current as to the date of publication. This page was last updated on September 25, 2020.

For more up-to-date information on the relief programs available in California, we recommend that you visit the Secretary of State's website or the California COVID-19 portal.

resource search icon

Description of Program and Relief

Unemployment Insurance Work-Sharing Program

The Unemployment Insurance Work Sharing Program is part of California’s ongoing state benefits programs. The Work-Sharing program allows businesses, including businesses impacted by COVID-19, to retain workers by reducing hours and wages no more than 60% and partially offsetting wage loss with unemployment insurance benefits.

Government or Lead Agency

State of California, Employment Development Department

Dates Available

Ongoing

Eligibility Requirements/Restrictions

To participate, employers must meet all of the following requirements:

  • Be a legally registered business in California.

  • Have an active California State Employer Account Number.

  • At least 10 percent of the employer’s regular workforce or a unit of the workforce, and a minimum of two employees, must be affected by a reduction in hours and wages.

  • Hours and wages must be reduced by at least 10 percent and not exceed 60 percent.

  • Health benefits must remain the same as before, or they must meet the same standards as other employees who are not participating in Work Sharing.

  • Retirement benefits must meet the same terms and conditions as before, or they must meet the same as other employees not participating in Work Sharing.

  • The collective bargaining agent of employees in a bargaining unit must agree to voluntarily participate and sign the application for Work Sharing.

  • Identify to the Employment Development Department: (1) the affected work units to be covered by the Work Sharing plan and (2) each participating employee by their full name and Social Security number.

  • Notify employees in advance of the intent to participate in the Work Sharing program.

  • Identify to the Employment Development Department the number of layoffs that will be avoided by participating in the Work Sharing program.

  • Provide the Employment Development Department with any necessary reports or documents relating to the Work Sharing plan.

Leased, intermittent, seasonal, or temporary service employees and corporate officers or major stockholders with investment in the company may not participate in the program. The program may not be used as a transition to a layoff.

Application Deadlines (If Applicable)

N/A

Contact for More Information

Employment Development Department Special Claims Office: (916) 464-3343

List of Additional Information

Work Sharing Program (including application materials): https://www.edd.ca.gov/unemployment/Work_Sharing_Program.htm

Coronavirus 2019 FAQs # 20: https://www.edd.ca.gov/about_edd/coronavirus-2019/faqs.htm


© 2021 Paul, Weiss, Rifkind, Wharton & Garrison LLP. This does not constitute legal advice and does not create an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. Past representations are no guarantee of future outcomes.

© 2024 Paul, Weiss, Rifkind, Wharton & Garrison LLP

Privacy Policy