Business

TX Workforce Commission Offers “Work Sharing” Instead of Layoffs

HOUSTON The Texas Workforce Commission has been overwhelmed by thousands of Texans who are claiming unemployment benefits due to layoffs and reduced hours due to COVID-19.

TWC said it experiences “extremely high” call volumes and wait times on its Tele-Center telephone linesand urged people to connect.

The TWC waives the job search requirements for all applicants and the waiting week for applicants affected by COVID-19. According to the Department of Labor, federal law allows “great flexibility” for states to provide unemployment insurance (UI) services related to COVID-19.

Even online, people have encountered error messages, prompting the TWC to remind people that its staff are working around the clock to help those whose pay checks have been affected by COVID-19.

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The TWC urged employers to enroll in a work-sharing program as an alternative to dismissal.

Here is how the TWC defines the “Work-Sharing” program:

Work-sharing allows employers to supplement the wages of their employees lost due to reduced working hours with partial unemployment benefits.

Under the program, employers can reduce the normal weekly working hours of employees in an affected unit by at least 10% but not more than 40%.

Unemployment benefits for work-sharing are payable to employees who are eligible and participate in an approved work-sharing plan. Workers can choose not to participate. Eligible employees will receive both wages and unemployment benefits for work-sharing.

The employer can only use the shared work plan for employees whose hours have been reduced. Work-sharing benefits can only be paid for wages lost due to a reduction in employees’ regular hours. Normal hours should not exceed 40 hours. An employee who normally works overtime may not receive shared benefits for reduced overtime.

Tammy Morales is one of the people who should benefit from a work-sharing program.

After 15 months as a temporary receptionist at D.B. Schenker, she was laid off and said she would still be employed when the company’s business resumed.

She was laid off during a conference call while the company was practicing social distancing.

“I was in tears,” she said. “It was very upsetting. It was my only income.”

Morales is looking for work so that she can pay her bills, such as credit cards, car payments and rent.

Thousands of Texans are in the same position. Rich Rosso, director of financial planning for RIA Advisors, said his clients were calling to ask him how to manage their budget.

“It falls like dominoes. People get notices, are on leave, and they come to me and don’t know what to do,” said Rosso.

Rosso advised asking the credit card companies to lower your interest rates. He also advised to keep costs as low as possible during your absence.

Morales spent Saturday going to grocery stores looking for a job.

“I live from paycheck to paycheck, so if I can’t find a job quickly, I’m in trouble,” she said.

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