The magnitude of Indiana not having a work share program during the pandemic was revealed yesterday in new research from the Brookings Institution. The national group said Indiana could have saved as many as 34,000 jobs during May through October and missed out on as much as $116 million in federal funding to pay for unemployment claims. The latter figure, Brookings cautions, could continue to grow to as high as $200 million by the end of September if the General Assembly does not pass work share this session.
Currently, 28 states have work share laws in place. Under the program, employers can keep skilled employees on their payroll through reduced hours during an economic downturn instead of being forced to impose complete layoffs. Employees retain their work-based benefits like health care and retirement while receiving partial unemployment benefits. The state avoids having to pay full unemployment to workers who would otherwise be laid off entirely. Then, when the company’s economic situation improves, employees can return to full-time status.
The Indiana Chamber of Commerce has pushed the General Assembly to adopt work share previously but no House or Senate floor votes have occurred. President and CEO Kevin Brinegar says the Brookings data “should be a loud wakeup call” for the state.
“It’s time to have a genuine discussion on the merits of the policy. Though Indiana has missed the boat on work share so far, we still have time to change course and get the program paid for.
