AB 1731 Offers Much-Needed Reforms To California's Work Sharing Program

Signed into law on September 28, 2020, AB 1731 moves California's work sharing program into the 21st century by mandating an online application process and specific deadlines for delivering claim forms. Work sharing is an unemployment insurance (UI) benefit program that gives employers the option of reducing employee hours during an economic downturn in lieu of layoffs. The employee receives a prorated UI benefit to replace the loss in wages.

Many economists believe that work sharing offers better options than layoffs. Participating employers get to keep trained employees and can recover more quickly when business financial conditions improve. Work sharing also avoids the costs associated with recruiting, hiring, and training new employees after layoffs. Employees get a prorated UI benefit and continued health and retirement benefits without having to look for other work.