CHAPTER 215. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM

LABOR CODE

TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT

SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT

CHAPTER 215. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 215.001. DEFINITIONS. In this chapter:

(1) "Affected unit" means a unit of two or more employees,

including a department or shift, designated by an employer to

participate in a shared work plan.

(2) "Fringe benefit" means health insurance, a retirement

benefit received under a pension plan, a paid vacation day, a

paid holiday, sick leave, or any other similar employee benefit

provided by an employer.

(3) "Normal weekly hours of work" means the number of hours in a

week that an employee ordinarily works for a participating

employer or an average of 40 hours per week over a two-week pay

period, whichever is less.

(4) "Participating employee" means an employee who works a

reduced number of hours under an approved shared work plan.

(5) "Participating employer" means an employer who has a shared

work plan in effect.

(6) "Shared work benefit" means an unemployment compensation

benefit that is payable to a participating employee.

(7) "Shared work plan" means a plan for reducing unemployment

under which employees who are members of an affected unit share

the work remaining after a reduction in their normal weekly hours

of work.

(8) "Shared work program" means the shared work unemployment

compensation program.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

42, Sec. 1, eff. May 19, 2009.

Sec. 215.002. SHARED WORK UNEMPLOYMENT COMPENSATION PROGRAM.

(a) The commission, under a voluntary shared work unemployment

compensation program designed to reduce unemployment and

stabilize the work force, shall allow participating employees

shared work benefits.

(b) The commission may adopt rules and establish procedures

necessary to administer the shared work program.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER B. SHARED WORK PLAN

Sec. 215.021. APPROVAL REQUIRED FOR EMPLOYER PLAN. (a) Before

an employer may participate in the shared work program, the

commission must approve the employer's shared work plan. The plan

must be submitted in writing to the commission.

(b) If an employee who participates in a shared work plan is

covered by a collective bargaining agreement, the collective

bargaining agent must approve the plan in writing.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.022. REQUIREMENTS OF SHARED WORK PLAN. (a) The

commission may approve a shared work plan if:

(1) the plan:

(A) applies to and identifies a specific affected unit;

(B) identifies the employees in the affected unit by name and

social security number;

(C) reduces the normal weekly hours of work for an employee in

the affected unit by at least 10 percent but not more than 40

percent;

(D) applies to at least 10 percent of the employees in the

affected unit; and

(E) describes the manner in which the participating employer

treats the fringe benefits of each employee in the affected unit;

(2) the employer certifies that the implementation of a shared

work plan and the resulting reduction in work hours is in lieu of

temporary layoffs that would:

(A) affect at least 10 percent of the employees in the affected

unit; and

(B) result in an equivalent reduction in work hours; and

(3) the employer agrees to furnish the commission reports

relating to the operation of the plan as requested by the

commission.

(b) A shared work plan may not be implemented to subsidize a

seasonal employer during the off-season or to subsidize an

employer who traditionally has used part-time employees.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.023. APPROVAL OR DENIAL OF SHARED WORK PLAN; NOTICE.

(a) The commission shall approve or deny a shared work plan in

writing not later than the 30th day after the date the commission

receives the plan.

(b) If the commission denies the plan, the commission shall give

the employer the reasons for denial.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.024. EFFECTIVE DATE OF SHARED WORK PLAN; EXPIRATION OR

TERMINATION. (a) A shared work plan takes effect on the date

the commission approves the plan.

(b) A shared work plan expires on the last day of the 12th

calendar month beginning after the effective date of the plan.

(c) The commission may terminate a shared work plan for good

cause if the plan is not being executed according to the terms

and intent of the shared work program.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.025. MODIFICATION OF SHARED WORK PLAN. (a) An

employer may modify a shared work plan to meet changed conditions

if the modification conforms to the basic provisions of the plan

as approved by the commission.

(b) Before implementing a proposed change, the employer must

report the change in writing to the commission.

(c) The commission shall reevaluate a plan that is proposed to

be substantially modified.

(d) If a proposed plan modification is substantial, the

commission may approve the modified plan according to the

requirements of Sections 215.022(a)(1) and (2) or shall deny the

modification subject to Section 215.023.

(e) Approval of a modified plan does not affect the plan's

original expiration date.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.026. PARTICIPATING EMPLOYER'S REPORT ON PLAN OPERATION.

A participating employer shall:

(1) monitor and evaluate the operation of its established shared

work plan as requested by the commission; and

(2) report the findings to the commission.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER C. SHARED WORK BENEFITS

Sec. 215.041. EMPLOYEE'S ELIGIBILITY FOR SHARED WORK BENEFITS.

(a) Notwithstanding any other provision of this subtitle, an

individual is unemployed for the purposes of this subtitle in a

week in which the individual works under an approved shared work

plan in effect for that week for less than the individual's

normal weekly hours of work.

(b) An individual is eligible to receive shared work benefits

for a week in which:

(1) the individual is employed as a member of an affected unit

subject to a shared work plan that was approved before that week

and is in effect for that week;

(2) the individual is able to work and is available for

additional hours of work or for full-time work with the

participating employer; and

(3) the individual's normal weekly hours of work have been

reduced by at least 10 percent but not more than 40 percent, with

a corresponding reduction in wages.

(c) The commission may not deny shared work benefits for a week

to an otherwise eligible individual because of a provision of

this subtitle that relates to:

(1) availability for work;

(2) active search for work; or

(3) refusal to apply for or to accept work with an employer

other than the participating employer.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.042. SHARED WORK BENEFITS FORMULA. (a) The commission

shall pay an individual who is eligible for shared work benefits

a weekly shared work benefit in an amount equal to the

individual's regular weekly benefit amount for a period of total

unemployment multiplied by the nearest full percentage of

reduction of the individual's wages under the employer's shared

work plan.

(b) The commission shall round to the next highest dollar a

shared work benefit that is not a multiple of one dollar.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.043. LIMITATIONS ON BENEFITS. (a) An individual is

not entitled to receive shared work benefits and regular

unemployment compensation benefits that exceed the maximum total

benefits payable to the individual in a benefit year as provided

by Section 207.005.

(b) An individual who receives shared work benefits is not

entitled to receive benefits for partial unemployment under

Section 207.003 for any week in which the individual works as a

participating employee.

(c) The commission may not pay an individual shared work

benefits for a week in which the individual performs paid work

for the participating employer that exceeds the reduced hours

established under a shared work plan.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 215.044. EXTENDED BENEFITS. An individual who has received

all of the shared work benefits and regular unemployment

compensation benefits available in a benefit year is an

individual who has exhausted regular benefits under Section

209.042 and is entitled to receive extended benefits under

Chapter 209 if the individual is otherwise eligible under that

chapter.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.