One in six workers in California had filed for unemployment since the start of the COVID-19 pandemic. Due to the increasing number of businesses closing, a lot of workers are losing their jobs.

However, economists are saying that there are better ways for businesses to face the issues brought by the COVID-19 pandemic. They suggest that for businesses to keep their employees, they can reduce the time they report for work and make use of unemployment benefits to fill their lost wages.

This strategy is called work sharing. It can be a helpful way to prevent layoffs during the incidents of recessions.


Work Sharing in California

Many business owners are finding the application process for the work sharing program in California a bit outdated. Also, some workers want to know when they will see the outcomes of the program.


Customization 

The program is suitable for companies like Marketing Innovations International, also known as MII, a Pacoima-based business that outsources products from Asia and makes products specifically for a client.

The business customizes products such as key chains, compact mirrors, and any other products that are customizable.

Due to the COVID-19 pandemic, MII's business had been hit hard. The company is in the process of shifting to sell protective gear for businesses and other organizations that want to equip their workers with facemasks and other necessary supplies to protect them from the novel coronavirus.

MII's workers are going to work. One of its graphic designers, Nestor Escobar, is following social distancing rules alongside his co-workers in their large office and warehouse. They are also wearing face coverings and use hand sanitizers as additional protection from SARS-CoV-2, the virus that causes COVID-19.

Due to the COVID-19, Escobar's hours at work were cut by more than half of his regular working hours. However, he is grateful for being able to retain his job, but he has bills to pay and that his savings are deteriorating.


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Plan to Help Employees 

MII has a plan to help its employees. It is in the process of applying for the 'Work Sharing' Program through the Employment Development Department in California. Employment Development Department is the agency that manages unemployment claims.


One of the States that Employs Work Sharing Program

California is one of the states in the country that employs a work sharing program for businesses. The concept behind work sharing is that it allows an alternative for companies that are left with no other choice but to conduct mass layoffs.

Employers who get approval for work sharing can reduce the hours of their employees up to 60 percent. This strategy helps the business save up a significant amount of payroll costs. This is applicable only if the companies keep their employees and continue to give their benefits.

The work sharing program makes use of unemployment benefits to replace the lost wages of the employees partly.