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Alternatives To Employee Layoffs


It’s easy to make a rash decision to eliminate jobs, but the long-term consequences can be significant to a business.

Now, the California Employment Development Department has issued a “Guide For Worksharing Employers” – an alternative to employee layoffs. It’s an Unemployment Insurance program, which allows certain employers to reduce employee hours while the employees collect partial unemployment insurance benefits.

The program may help employers with cost-cutting as well as keep key employees. and avoid the mad hiring dash later.

An employer may be able reduce the employee workweek from five days to four – which results in a 20% reduction. The employees would be eligible to receive 20 percent of their weekly unemployment insurance benefits—and are spared the hardship of full unemployment.

There are qualifiers – but this is a good example of yet another alternative that should be considered when contemplating employee layoffs.


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Dave Berkus is an accomplished speaker, author and angel investor.  He provides common sense advice to all businesses through his blog, Berkonomics. His recent post deals with the frustrations of busi

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