An Act To Implement a Maine Unemployment Insurance Work-sharing Program
Maine Legislature, Session 125, LD 0269
Committee: Labor, Commerce, Research and Economic Development
Sponsors: RUSSELL
Amends: 26 MRSA §1198

Legislative Document 
No. 269 
H.P. 222 
House of Representatives, February 1, 2011 
An Act To Implement a Maine Unemployment Insurance Work-
sharing Program 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative RUSSELL of Portland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §1198 is enacted to read: 
§1198.  Work-sharing benefits 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Affected unit" means a specified plant, department, shift or other definable unit 
consisting of 2 or more eligible employees to which a work-sharing plan applies. 
B.  "Commissioner" means the Commissioner of Labor or the commissioner's 
designee. 
C.  "Eligible employee" means an individual who usually works for the eligible 
employer submitting a work-sharing plan. 
D.  "Eligible employer" means a private employer: 
(1)  Who has had contributions credited to the private employer's account; 
(2)  To whose account benefits have been chargeable; and 
(3)  Who is not delinquent in the payment of contributions or reimbursements or 
in the reporting of wages. 
E.  "Fringe benefits" includes, but is not limited to, health insurance, retirement 
benefits, paid vacation and holidays, sick leave and similar advantages that are 
incidents of employment. 
F.  "Intermittent employment" means employment that is not continuous but may 
consist of intervals of weekly work and intervals of no weekly work. 
G.  "Seasonal employment" means employment in seasonal industries within the 
determined seasonal period or periods. 
H.  "Seasonal industry" means an industry in which, because of the seasonal nature of 
the industry, it is customary to operate only during a regularly recurring period or 
periods of less than 26 weeks in a calendar year and any seasonal industry under 
section 1251, subsection 1. 
I.  "Temporary layoff" means the layoff of workers in an affected unit for an 
indefinite period expected to last for at least 2 months but less than 6 months. 
J.  "Usual weekly hours of work" means the normal hours of work each week for an 
eligible employee in an affected unit when that unit is operating on a full-time basis, 
not to exceed 40 hours and not including overtime. 
K.  "Work-sharing benefits" means benefits payable to eligible employees in an 
affected unit under an approved work-sharing plan. 
L.   "Work-sharing employer" means an eligible employer with an approved work-
sharing plan in effect. 
M.  "Work-sharing plan" means a plan submitted to the commissioner by an eligible 
employer under which there is a reduction in the number of hours worked by the 
eligible employees in the affected unit in lieu of temporary layoffs of some of the 
employees. 
2.  Criteria for approval of a work-sharing plan.  An eligible employer wishing to 
participate in a work-sharing program under this section must submit a signed work-
sharing plan to the commissioner for approval. The commissioner shall approve a work-
sharing plan if the following requirements are met: 
A.  The work-sharing plan identifies the affected unit or units and specifies the 
effective date of the plan; 
B.  The work-sharing plan identifies the eligible employees in the affected unit or 
units by name, social security number, usual weekly hours of work, proposed wage 
and hour reduction and any other information that the commissioner requires; 
C.  The work-sharing plan certifies that the reduction in the usual weekly hours of 
work is in lieu of temporary layoffs that would have affected at least 10% of the 
eligible employees in the affected unit or units and that would have resulted in an 
equivalent reduction in work hours; 
D.  Under the work-sharing plan the usual weekly hours of work for eligible 
employees in the affected unit or units are reduced by not less than 10% and not more 
than 50% and the reduction in hours in each affected unit is spread equally among 
eligible employees in the affected unit; 
E.  The work-sharing plan specifies the manner in which the fringe benefits of the 
eligible employees will be affected; 
F.  In the case of eligible employees represented by a collective bargaining agent, the 
work-sharing plan is approved in writing by the collective bargaining agent that 
covers the affected eligible employees. In the absence of a collective bargaining 
agent, the work-sharing plan must contain a certification by the eligible employer that 
the proposed plan, or a summary of the plan, has been made available to each eligible 
employee in the affected unit; 
G.  A statement that the work-sharing plan will not serve as a subsidy of seasonal 
employment during the off-season or of intermittent employment is included; and 
H.  The eligible employer agrees to furnish reports relating to the proper conduct of 
the work-sharing plan and agrees to allow the commissioner or the commissioner's 
designee or authorized representatives access to all records necessary to verify the 
plan prior to approval and to monitor and evaluate application of the plan after 
approval. 
3.  Approval or rejection of the work-sharing plan.  The commissioner shall 
approve or reject a work-sharing plan in writing. The commissioner's decision is final and 
not subject to appeal.  The eligible employer may submit another work-sharing plan for 
approval, and a determination must be made based upon the new information submitted 
by the eligible employer. 
4.  Effective date and duration of the work-sharing plan.  A work-sharing plan 
takes effect on the date specified in the plan or on the first Sunday following the date on 
which the plan is approved by the commissioner, whichever is later. It expires at the end 
of the 12th full calendar month after its effective date or on the date specified in the plan 
if that date is earlier, unless the plan is previously revoked by the commissioner. If a plan 
is revoked by the commissioner, it terminates on the date specified in the written order of 
revocation. 
5.  Review; revocation of approval.  The commissioner shall review the operation 
of each approved work-sharing plan at least once during the period the plan is in effect to 
ensure that it complies with the work-sharing plan requirements under subsection 2.  The 
commissioner may revoke approval of a work-sharing plan for good cause. 
A.  The revocation order must be in writing, state the reason for revocation and 
specify the date the revocation takes effect.  The revocation order is final and not 
subject to appeal. 
B.  Action to revoke the work-sharing plan may be taken at any time by the 
commissioner on the commissioner's own motion, on the motion of any of the 
affected unit's eligible employees or on the motion of a collective bargaining agent 
that covers the affected employees. 
For the purposes of this subsection, "good cause" includes, but is not limited to, failure to 
comply with assurances given in the work-sharing plan, unreasonable revision of 
productivity standards for the affected unit, conduct or occurrences tending to defeat the 
intent and effective operation of the plan and violation of any criteria on which approval 
of the plan was based. 
6.  Modification of the work-sharing plan.  An operational approved work-sharing 
plan may be modified by the eligible employer with the consent of a collective bargaining 
agent that covers the affected employees, if any, if the modification is not substantial, 
conforms with the plan approved by the commissioner and is reported promptly to the 
commissioner by the eligible employer.  If the hours of work are increased or decreased 
substantially beyond the level in the original plan or any other conditions are changed 
substantially, the commissioner shall approve or disapprove the modifications without 
changing the expiration date of the original plan.  If the substantial modifications do not 
meet the requirements for approval under subsection 2, the commissioner shall disallow 
those modifications in writing. The decision of the commissioner is final and not subject 
to appeal. 
7.  Eligibility for work-sharing benefits.  After serving a waiting period as 
prescribed by the commissioner, an eligible employee is eligible to receive work-sharing 
benefits with respect to any week only if the commissioner finds that, in addition to 
meeting other conditions of eligibility for regular benefits under this Title that are not 
inconsistent with this section: 
A.  During the week, the eligible employee is employed as a member of an affected 
unit under an approved work-sharing plan that was approved prior to that week and 
that is in effect with respect to the week for which work-sharing benefits are claimed; 
and 
B.  The eligible employee is available and able to work the normal workweek with 
the work-sharing employer. 
Notwithstanding any other provisions of this chapter, an eligible employee is deemed 
unemployed in any week for which remuneration is payable to that eligible employee as 
an eligible employee in an affected unit for less than that eligible employee's normal 
weekly hours of work as specified under the approved work-sharing plan in effect for the 
week. 
Notwithstanding any other provisions of this Title, an eligible employee may not be 
denied work-sharing benefits for any week by reason of the application of laws and rules 
relating to the availability for work and active search for work with an employer other 
than the work-sharing employer. 
8.  Work-sharing benefits.  This subsection governs the payment of work-sharing 
benefits under this section. 
A.  The weekly work-sharing benefit amount is the product of the regular weekly 
benefit amount, including any dependents' allowances, multiplied by the percentage 
reduction in the eligible employee's usual weekly hours of work as specified in the 
approved work-sharing plan.  If the weekly work-sharing benefit amount is not an 
exact multiple of $1, the weekly work-sharing benefit amount must be rounded down 
to the next lower multiple of $1. 
B.  An eligible employee may not receive a total of work-sharing benefits and regular 
unemployment compensation in any benefit year that exceeds the maximum 
entitlement established for unemployment compensation, nor may an eligible 
employee be paid work-sharing benefits for more than 52 weeks in any benefit year 
pursuant to an approved work-sharing plan. 
C.  The work-sharing benefits paid must be deducted from the maximum entitlement 
amount established for an eligible employee's benefit year. 
D.  If an eligible employer approves time off and the eligible employee has 
performed some work during the week, the eligible employee is eligible for 
work-sharing benefits based on the combined work and paid leave hours for that 
week.  If the eligible employer does not grant time off, the question of availability 
must be investigated by the commissioner. 
E.  If an eligible employee was sick and consequently did not work all the hours 
offered by the work-sharing employer in a given week, the employee must be denied 
work-sharing benefits for that week. 
F.  Claims for work-sharing benefits must be filed in the same manner as claims for 
unemployment compensation or as prescribed in rules by the commissioner. 
G.   Laws and rules applicable to unemployment compensation claimants apply to 
work-sharing claimants to the extent that they are not inconsistent with the 
established work-sharing provisions. An eligible employee who files an initial claim 
for work-sharing benefits, if eligible for work-sharing benefits, must be provided a 
monetary determination of entitlement to work-sharing benefits and must serve a 
waiting period of one week. 
H.  If an eligible employee works in the same week for a work-sharing employer and 
an employer other than the work-sharing employer, the eligible employee's work-
sharing benefits must be computed in the same manner as if the eligible employee 
worked solely with the work-sharing employer, except that if the eligible employee is 
not able to work or is not available for the normal workweek with the work-sharing 
employer, work-sharing benefits may not be paid to that eligible employee for that 
week. 
I.  An eligible employee who does not work during a week for the work-sharing 
employer and is otherwise eligible must be paid the full weekly unemployment 
compensation amount. That week is not counted as a week for which work-sharing 
benefits were received. 
J.  An eligible employee who does not work for the work-sharing employer during a 
week but works for another employer and is otherwise eligible must be paid benefits 
for that week under the partial unemployment compensation provisions of this 
chapter.  That week is not counted as a week for which work-sharing benefits were 
received. 
K.  Nothing in this section precludes an otherwise eligible employee from receiving 
total or partial unemployment benefits when the eligible employee's work-sharing 
benefits have been exhausted. 
9.  Benefit charges.  Notwithstanding any other provisions of this Title, work-sharing 
benefits are charged to the account of the work-sharing employer.  Employers liable for 
payments in lieu of contributions must reimburse the Unemployment Compensation Fund 
for the full amount of work-sharing benefits paid to their employees under an approved 
work-sharing plan. 
10.  Extended benefits.  An individual who has received all of the unemployment 
compensation or combined unemployment compensation and work-sharing benefits 
available in a benefit year is considered an exhaustee for purposes of extended benefits, 
as provided in section 1043, subsection 5, paragraph B, and, if otherwise eligible under 
that paragraph, is eligible to receive extended benefits. 
SUMMARY 
This bill creates a work-sharing program that provides an alternative to layoffs during 
a temporary slowdown in business.  Under a work-sharing plan, an employer elects to 
avoid layoffs by reducing the number of regularly scheduled hours of work for all 
workers in a specific unit or department or the business as a whole.  Unemployment 
insurance benefits for the reduced hours of work are then payable as a proportion of the 
benefit amount for a full week of unemployment. 
A work-sharing plan is voluntary on the part of the employer.  A plan must be 
approved by the Commissioner of Labor or the commissioner's designee and, if the 
employees are unionized, by their collective bargaining agent.