COLUMBUS — State Senator Bob Peterson today urged members of the Senate Commerce & Labor Committee to support his legislation that would create a shared work program, also known as short-time compensation. Peterson is sponsoring Senate Bill 25 with Senator Frank LaRose (R- Copley).
In his testimony, Peterson noted that a shared work program provides employers and workers an alternative to layoffs. Rather than eliminate positions, a plan is adopted to reduce the hours worked of all employees. Under this scenario, workers would continue to earn their normal pay per hour, but also collect prorated unemployment for the hours the no longer work. If enacted, Ohio would join 25 other states in establishing a shared work program.
“Creating a shared work program in Ohio will give companies such as the Kenworth Trucking Company in Chillicothe an additional tool to retain skilled workers instead of losing them through layoffs, and then having to find and retrain new employees,” Peterson said. “In addition, my proposal is designed to be budget neutral, as any employer who chooses not to participate will retain their option for layoffs.”