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AIM Legislative Alert – Shared Work Unemployment Compensation Program

Associated Industries of Missouri’s (AIM) mission is to “promote a favorable business climate for business, manufacturing and industry.” To that end, we urge your support of Senate Bill 844, sponsored by Senator Bob Dixon (R-Springfield).

The legislation received preliminary passage in the Senate this week.

SB 844 makes changes to the Missouri Shared Work Unemployment Compensation Program that are necessary to comply with federally mandated changes to that program. Without these necessary changes, Missouri employers will no longer be able to participate in the Shared Work Program.

The Shared Work Program allows Missouri employers that are faced with a potential layoff to reduce the work hours of many employees in a work group rather than laying off one or more individuals. This allows the employer to spread the layoff hours among the workgroup so that a complete layoff of any particular employee may be avoided.

There are advantages to this approach for employers and for employees, as well as the state. Employers are charged the same unemployment charges as they would have been if they had completely laid off an equivalent number of workers, but they are able to simply reduce the hours of workers, allowing them to retain experienced workers. Employees often see the value in accepting reduced hours versus one of their own (or themselves) being completely laid off. And the state realizes the value of keeping individuals in the habit of working at their jobs.

Missouri businesses used this program to successfully navigate the unusual economic downturn in recent years and we need to preserve the ability to use the program in the future.

AIM calls on its members to continue to let your State Senator hear about your support for SB 844.

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