Wednesday, February 1, 2023

Now Permanent: California’s Streamlined Work Sharing Program Process

Initially a temporary fix to a COVID-19-related economic slowdown, the Employment Development Department’s (EDD) online, streamlined Unemployment Insurance (UI) Work Sharing program process is officially permanent.

As a temporary alternative to layoffs during a reduction in production or services, employers have, for decades, had access to the UI Work Sharing program, which allows them to reduce employee work schedules and have affected employees collect partial unemployment benefits for the time reduced.

To take advantage of the program, however, employers had to mail a paper application — the Work Sharing Unemployment Insurance Plan Application (DE 8686) — to the EDD.

Program Changes

In 2020, in response to the COVID-19 pandemic, Governor Gavin Newsom approved changes to this program on two separate occasions:

• On April 15, 2020, the Governor signed Executive Order (EO) N-50-20, which directed the EDD to establish an electronic means of expediting access to the work sharing program and gave the EDD discretion to suspend certain application requirements for that purpose.

• On September 28, 2020, Newsom signed legislation (CalChamber-supported AB 1731; Boerner Horvath; D-Encinitas) that allowed employers to submit and be approved for work sharing plan programs completely online, further streamlining the process.

But AB 1731 included a January 1, 2024, sunset date for the program’s online application process. So, during this legislative session, Assemblymember Tasha Boerner Horvath (D-Encinitas) introduced AB 1854 (also supported by CalChamber), which extends the provisions under AB 1731 indefinitely, and requires the EDD to accept electronic signatures on all work sharing plan documents.

Sunset Date Repealed

On July 19, 2022, Newsom signed AB 1854, repealing that sunset date and effectively making the new online process permanent.

“EDD’s work sharing program helps employers keep employees on the payroll and be in a better position to recover once conditions improve,” Boerner Horvath said in a press release. “AB 1854 simply ensures that employers can continue to make use of the streamlined online application to retain their talent.”

Employers can access the EDD’s Work Sharing Program, including requirements and restrictions, online.

Staff Contact: Jessica Mulholland

Jessica Mulholland
Jessica Mulholland
Jessica Mulholland joined the CalChamber in September 2017 as a senior editor and was promoted to a managing editor in January 2020. She leads production of the HRCalifornia Extra and California Employer Update newsletters, for which she also writes. She co-edits the California Labor Law Digest and the HR California website, edits the HR Quick Guide for California Employers, writes for the HRWatchdog blog, and edits CalChamber’s Sexual Harassment Prevention Training course. Mulholland has a B.A. in journalism from California State University, Chico, and a Master of Legal Studies from the University of Arizona James E. Rogers College of Law.

Related Articles

Compliance During Emergency Conditions

In Episode 168 of The Workplace podcast, CalChamber employment law expert Matthew Roberts sits down with CalChamber Labor Law Helpline expert Ellen Savage to discuss what has affected every Californian over recent weeks —...

Governor’s Budget Plans for Uncertain Economy

Governor Gavin Newsom presented a balanced budget this week with no new general tax increases. He identified a $22.5 billion “shortfall” between previously expected revenues and programmed spending, and addressed this gap with a...

Adopted Budget Includes Targeted Tax Benefits, One-Time Increases

This week the Legislature passed, and the Governor signed a $300 billion state budget that includes a number of targeted tax benefits for businesses, plus one-time increases in other areas. The budget also included a...