What’s Happening Today:

1. Arizona’s Shared Work ProgramA program to help both employers and employeesA program to keep Arizona working and to avoid layoffs

2. What’s Happening Today: This session is to explain the Shared Work program and to answer general questions about it. We also hope that you will take the opportunity to complete these forms today: • Shared Work Application • UI Certification of Understanding • Tax Election Form

3. The Shared Work Program: • It is an alternative to employers who are facing reduction in work force. • It allows employers to divide the available work hours among affected employees in lieu of a lay off. • It allows employees to receive a portion of their Shared Work benefits while working reduced hours.

4. How it works … Step 1 • When demand for goods/services increases, companies hire; when it decreases, they lay off workers. • Shared Work allows companies to spread the available work among employees, cutting regular working hours by 10% to 40%. • Those employees can then receive a corresponding 10% to 40% of their Unemployment Insurance benefits for their reduced hours.

5. How it works … Step 2 – Employers The employer submits a Shared Work Plan to the Arizona Department of Economic Security, including: • The names of employees participating in Shared Work; • Certification that the employees have been employed for at least 6 months and have received at least $1,500 in wages. • Indication that the employees named agree to “share the work,” rather than be laid off.

6. How it works … Step 3 – Employees: • Must establish an Arizona Unemployment Insurance Claim; • Must serve a waiting week: benefits are not payable for the first or waiting week; • Have their normal weekly work hours reduced by at least 10%, but not more than 40%, for each week claimed. Reduced hours must be for lack of work with the Shared Work employer; • Have alien registration, if it is applicable; • Cannot refuse work from the Shared Work employer.

7. Shared Work is like Unemployment Insurance, but there are some differences. Under Shared work, employees: • Are not required to seek work with other employers; • May refuse work offers from other employers; • May work for other employers without affecting their Shared Work benefits.

8. How benefits are computed: • An Unemployment Insurance claim is established for a 52-week period. • A maximum of 26 weeks can be paid during the 52-week period. • Weekly benefits range from $60 to $240. And these considerations apply, too … • If there is an existing Arizona UI claim, the weekly benefit and total award will not change for the remainder of the benefits year. • If a new claim is being established when you file for Shared Work, a wage statement will be sent by US mail.

9. Sample of possible benefits if the UI Weekly Benefit is the maximum of $240 Your partner for a stronger Arizona

10. Two things to consider … Child Support Issues US and AZ Taxes Unemployment Insurance benefits are taxable: Shared Work participants have the option to have taxes deducted from their weekly benefits or not. A 1099G will be sent to all Shared Work participants early in the next calendar year. Court-ordered Child Support payments are deducted from Shared Work benefits. • Contact the Division of Child Support Enforcement and explain that UI benefits are being paid. In Maricopa County, call 602/252-4045 or Statewide 1-800/882-4151 • For more information, visit their website, http://www.azdes.gov/dcse

11. What happens next? • A yellow pamphlet on UI (A Guide to UI Arizona Benefits) and a Tax Election Form will be mailed to you. If you complete the Tax Form today, you may disregard it, but please read the pamphlet carefully. • A Wage Statement will be mailed to you; please review it for accuracy. If there are discrepancies, please call 602/364-2722 to follow up. • Your employer will submit bi-weekly claims to the UI Shared Work Unit after participating employees have signed to verify the hours they worked and to certify that no work from Shared Work was refused. • Payments are usually paid every two weeks to an assigned debit card, unless you elect to have them directly deposited in a bank account.

12. If you are laid off while participating in the Shared Work Program, you must file a regular Unemployment claim and register with Employment Service! For more information, see www.azui.com

13. Summary • To Qualify for Shared work benefits: • Hours worked must be reduced by 10% to 40% (you must work 24 to 36hrs/week.) • Must serve a mandatory waiting week • Cannot refuse work from the Shared Work Employer • Must be employed for at least 6 months and have earned at least $1500 in wages. • Your employer will submit bi-weekly claims to the UI Shared Work Unit. • Payments are paid every two weeks to an assigned debit card, unless you elect to have them directly deposited in a bank account. • To Participate, please complete and submit the Application and required forms to your HR representative as soon as possible.

14. Q & A Now is the time to ask any general questions, but it’s not the only opportunity: your own Human Resource department will stay in close contact with us for any issues that arise.

15. Thank You!