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Companies Keep People to Be Fired With State Work Share

Bloomberg (01/10/13) Lorraine Woellert

Some states are paying workers to remain in their jobs using work share programs, also known as layoff aversion or short-term compensation, in which employees are given shortened work weeks instead of dismissal notices, with partial unemployment benefits making up their lost wages. Companies benefit from the programs because they can retain skilled and trained workers, and workers benefit from maintaining their skills and remaining employed while searching for new jobs. With federal funding for work share programs approved by Congress in 2012, 25 states and the District of Columbia now have such programs in place. The U.S. Department of Labor says nearly 460,000 jobs have been saved since 2008 because of these programs.