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February 5, 2026

Navigating Business Challenges? Keep Your Team Strong with the New York State Department of Labor’s Shared Work Program

Article provided by Margaret Enzien, Workforce Programs Specialist | Shared Work at New York State Department of Labor

In today's dynamic business environment, temporary slowdowns are a reality for many industries. While these periods can present challenges, they also offer an opportunity to implement strategies that protect your most valuable asset: your employees. The New York State Department of Labor's Shared Work Program is a powerful tool designed to help businesses avoid layoffs, retain skilled talent, and emerge stronger when conditions improve.

What is the Shared Work Program?

The Shared Work Program offers a flexible alternative to layoffs during short-term periods of reduced business activity. Instead of cutting staff, businesses can reduce the hours of their employees. While their work hours are temporarily reduced, eligible employees can receive a portion of their unemployment insurance benefits. This helps offset lost wages, providing a crucial financial bridge for employees.

So how does it work?

Employers can apply to participate in the Shared Work Program and determine which employees are enrolled.  Once approved, the program allows employers to reduce employee hours by a certain percentage (between 20% and 60%) while the employees collect a portion of their unemployment benefits for the lost hours. This helps employers retain their trained workforce and avoid the costs associated with layoffs and rehiring. Employees, in turn, maintain their jobs, benefits, and a portion of their income.

For employers, the benefits are substantial. Participating in the Shared Work Program can lead to significant cost savings by reducing overall payroll expenses during slower periods. It also allows businesses to retain trained and experienced employees, ensuring they are ready to contribute when business picks up, and spares you the considerable expenses of recruiting, hiring, and training new staff. This program positions businesses for a quick recovery, able to ramp up operations swiftly as demand returns. The flexibility to adjust work hour reductions weekly ensures the program can adapt to a business's evolving needs. Crucially, it helps employers avoid layoffs, maintaining a stable and productive workforce and fostering a sense of security. This demonstration of commitment to employees during challenging times can  boost morale, enhance loyalty, and cultivate a positive work culture.

Employees also find considerable advantages through the Shared Work Program. It provides job security, allowing workers to remain employed and alleviating the stress and uncertainty of layoffs. Employees can maintain a more consistent paycheck through a combination of reduced wages and unemployment benefits, contributing to a stable income. The program also facilitates a better work-life balance by offering shorter work schedules during slowdowns. Employees can continue to build and maintain their expertise within the company, preserving their valuable skills. They will be ready to resume full working hours promptly when business activity increases, ensuring a quick return to normal operations. A key benefit for employees is that they are not required to actively search for other employment while on the program, and their benefits remain unchanged unless adjusted for all employees.

Don't let temporary slowdowns impact long-term success. Explore the New York State Department of Labor’s Shared Work Program today and keep teams engaged and ready for what's next. For more details, visit the New York State Department of Labor’s website, complete our GET MORE INFORMATION online form, or call (518) 457-2315.

For media inquiries, please contact the New York State Department of Labor Press Office at (518) 457-5519 or by email at PressOffice@labor.ny.gov.