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Facing layoff/furlough decisions? You may want to consider the ’Kansas Department of Labors Shared Work Program . Through the program, employers can reduce the hours of regular, full-time or part-time employees, who can then collect partial unemployment benefits to replace a portion of their lost wages. Even better, the federal government will cover up to $100M in shared-work benefits through the end of the year. Normally rated employers have to pay all benefits back to the state when their laid off employees collect benefits, but this gives you a break. You can retain skilled staff while having a little breathing room to develop a long-term financial strategy. Even if you're not facing layoffs, it may be a helpful program to publicize to businesses in the community, since the shared-work option is available to public and private businesses.  Instead of “Unemployment Insurance” think of this program as “Employment Insurance.”  

This Employment Insurance program is a true WIN-WIN-WIN:
·         Employers WIN - Offers immediate economic relief while communicating and demonstrating a strong commitment to your employees while preserving your training investment and business continuity/knowledge
·         Employees WIN - Minimize economic concerns, uncertainty, frustration
·         Kansas Communities WIN - Keeps employees attached to the local labor market with more certainty


Employee Pay / Workshare Examples*:
No Workshare:
    $15.00 X 40 work hours = $600.00 (gross wages) - equates to $120.00 per day

20% KDOL Shared Work reduction:
     *$488 (maximum weekly KS UI benefit amount) X 20% = $97.60 (1 work day OR 20% hours reduction - partial UI payment)
+   Partial compensation/payment from Employer:  $15.00 X 32 work hours = $480 (gross wages)
=   $97.60 + $480.00 = $577.60 (gross)

OR

40% KDOL Shared Work reduction:
     *$488 (maximum weekly KS UI benefit amount) X 40% = $195.20 (2 work days OR 40% hours reduction - partial UI payment)
+   Partial compensation/payment from Employer:  $15.00 X 24 work hours = $360 (gross wages)
=   $195.20 + $360.00 = $555.20 (gross)

*To calculate daily workshare amount:
Employees will divide their 2019 Total Gross Wages (or most recent 4 calendar quarters of wages reported for each employee)
divided by 52 (weeks)
multiplied by .6 (60% - statutory)
divided by 5 (work days)
equals Daily WS Amount (daily partial UI payment)


Helpful forms:
· Shared Work Plan Application
· Printable PDF of information for Employers (K-BEN-P 050)
· Printable PDF of information for Employees (K-BEN-P 052)


KDOL Confirms Unemployment Fraud Reporting
The Kansas Department of Labor has confirmed standard Unemployment fraud reporting guidelines will be enforced during the COVID-19 pandemic. Unemployment fraud is the willful misrepresentation of information by an individual for the purposes of collecting UI benefits; anyone who collects UI while knowingly doing something that makes them ineligible. Fraud occurs when a claimant receives benefits:
·         while refusing suitable work and failing to report this;
·         while working and not reporting (correct) earnings;
·         operating their own business;
·         knowingly misrepresenting they're able and available for work.

The penalty for unemployment fraud is disqualification from receiving any unemployment benefits for five years plus a 25% penalty on subsequent payments; you are required to repay any benefits you receive that you are not entitled to. All allegations of fraud are investigated, and anyone can report suspected fraudulent activity by:
·         The printable fraud form
·         The electronic fraud form
·         The Job Refusal Statement - Employer
·         Email: KDOL.Fraud@ks.gov
·         Phone: 785.581.7300
·         Fax: 785.296.5779
·         Mail: UI Fraud Investigations Unit, Kansas Department of Labor  |   401 SW Topeka Blvd., Topeka, KS 66603-3182

Find additional information and FAQ regarding KDOL UI fraud .


For full program details, check out the KDOL Shared Work Program website .

Feel free to direct any members and/or local business that may have questions to me with specific questions/concerns.

Happy to help,
Phil
316.619.7864 - cell