SPECULATION: Can Oregon Work Share Benefit Both Employers and Employees As an Alternative to Layoffs Under COVID-19?

Oregon has had a Work Share program as an alternative to unemployment since 1982. (Yes, I'm old I remember when it was created).

This is a VOLUNTARY program that requires the EMPLOYER to file an application.  The bonus for the employer is reduced wage expenses and skilled worker retention and the bonus for the employee is retention of fringe benefits. 

Oregon's guidelines are HERE and require the completion of just a few simple forms by the employer.

The Federal Department of Labor issued some new guidelines on April 4 HERE that MIGHT impact the appeal of Work Share for Oregon employers and employees.  

QUICK guidance from the Oregon Employment Department would help provide  clarification and insure that employees in Work Share agreements receive the maximum possible benefits under the COVID-19 unemployment provisions. 

The DOL guidelines appear to ME to allow qualified employees under Work Share

1. To collect between 60% to 80% of their wages (Oregon's program allows a work reduction between 20% to 40%). 
2. To collect between 20% to 40% of their base unemployment benefit for 39 weeks
3. To collect 100% of the $600 supplemental unemployment insurance for up to 17 weeks 

The combination of these income streams MIGHT replace most and perhaps more than the workers full time earnings for those 39 weeks. 

The picture pasted below has MY draft calculations that show that for a full time worker with annual wages of $43,040 could receive a total of 131% ($42,157) of their FULL time wages for that same 39 week period ($32,280) via a combination of reduced wages and unemployment benefits.  That percentage will decline IF the work sharing plan is approved so that less than the 17 weeks of bonus unemployment benefits are available.

Initial Thoughts on What is QUICKLY needed
In light of the new DOL guidance the Oregon Employment Department needs to QUICKLY clarify:

1. IF work sharing will adversely impact the employers future unemployment costs, and if so are those costs the same as what the employer would have if employees were instead laid off? 
2. Can the employer terminate an approved work share plan at any time; is there any required advance notice required?
3. IS their a minimum or maximum base income that would qualify an employee for base level unemployment benefits that would then trigger eligibility for the $600 supplemental UI benefit?
4. IF there is a delay in Work Sharing employer plan approval is the key date the date that employer submits the application so that the employee can qualify for as many of the 17 weeks of $600 supplemental benefits as possible? 
5. What does the employee need to do before OR after the employer submits the work sharing application?
6. The status and dates of approval of any COVID-19 compliant Work Sharing plans (and any new employer testimonials). 

Originally created and posted on the Oregon Housing Blog,