(INDIANAPOLIS) — Indiana has failed to enact work share legislation multiple times in recent years. Now, with Washington throwing a lifeline to states that failed to act previously, the state is saying no once again – to the program and the federal funds and economic stimulus that comes with it.

“Our state government leaders are showing exemplary leadership in guiding the state’s health and economic recovery from COVID-19,” says Indiana Chamber of Commerce president and CEO Kevin Brinegar. “Choosing not to implement work share, however, is a missed opportunity to assist Hoosier employers and their employees.”

Work share is a voluntary and cost-effective alternative to traditional unemployment. Instead of laying off a number of employees entirely during an economic downturn, an employer can retain those workers and instead reduce the hours of all employees or those of a particular group or department. Those employees then draw a partial unemployment compensation benefit based upon the hours reduced.

Twenty-eight states today have successful work share programs. Workers in those states are able to receive the partial unemployment benefits AND the $600 per week in extra federal support that is available through July 31. Additional dollars will be circulating in the economies of those states – but not in Indiana.

“Work share allows workers to maintain employment, provides employers with the opportunity to retain a skilled workforce and benefits the state economy in multiple ways,” Brinegar adds. “Without work share, it’s less money for employees, reduced flexibility for companies and additional depletion of the state’s unemployment insurance trust fund in a time of most severe need.”

If Indiana had already adopted a work share law, the federal government – through the CARES Act – would be paying 100% of all work share benefits from now until the end of 2020. The current “lifeline” provision allows non-work-share states like Indiana to participate and receive federal funding for 50% of work share benefits for the remainder of the year.

In addition, the CARES Act appropriates $100 million for non-work-share states to pay for the costs of developing computer systems and other administrative costs of establishing a work share program.

Many Hoosier companies are using work share effectively for their operations in other states. Brinegar says it’s most unfortunate that they do not currently have that opportunity in Indiana, and he hopes that the state reconsiders its position in the coming months, before the Indiana General Assembly reconvenes, in order to be better prepared for future economic downturns.

###

The Indiana Chamber partners with 25,000 members and investors – representing over four million Hoosiers – to achieve the mission of “cultivating a world-class environment which provides economic opportunity and prosperity.”