On April 26, 2013, Colorado Governor John Hickenlooper signed into law an extension of the Colorado Work-Share Program. Created in 2010, the program was due to expire this month; however, despite being in effect for three years, the program remains relatively obscure and unknown to most Colorado businesses and employees. What does this program do for the employees of struggling businesses in the state? Also, why did it take the state DOL three years to begin promoting this program?
The Colorado Work-Share Program is designed to assist employees of struggling businesses who find their work hours reduced. Under normal circumstances, an employee cannot begin the process of filing for unemployment insurance until after the employee’s relationship with the employer is formally terminated through no fault of their own. However, under the Work-Share Program an individual can remain employed at the business and work a reduced schedule while at the same time collecting prorated unemployment benefits for up to 26 weeks to offset the lost work hours. In order to qualify, the employee’s normal work hours must be reduced by at least 10 percent and no more than 40 percent. The state’s unemployment insurance fund is unaffected by this program as the state is reimbursed by the federal government.
When the program was first authorized in 2010, the state DOL had no funds available to promote it. According to the Society for Human Resource Management (SHRM), Colorado was recently allowed to access federal grants which will, in turn, allow the state DOL time and resources to begin promoting and supporting the program.