HB 1266 Summary

• Creates a voluntary Shared Work Unemployment Compensation Program allowing employers to reduce employee hours by 20-40% instead of implementing layoffs, with affected employees receiving partial unemployment benefits.

• Increases the maximum duration of shared work benefits from 26 to 52 calendar weeks during the 12-month period a shared work plan is in effect.

• Requires employers to submit written shared work plans for division approval, identifying affected units of at least 3 employees, and certifies the plan replaces temporary layoffs affecting at least 10% of unit employees.

• Establishes eligibility requirements for participating employees including serving a waiting week, working reduced hours with corresponding wage reduction, and being otherwise entitled to regular unemployment insurance benefits.

• Specifies that shared work benefits are calculated as the regular weekly benefit amount multiplied by the percentage of hours reduction, with all benefits charged to the participating employer's account.