Governor Newsom signs bill extending California Work Sharing program

SACRAMENTO – A California Assembly Bill was signed Tuesday, July 19 by Gov. Gavin Newsom, which will make it easier for California employers to retain their employees and avoid layoffs during economic hardship.

During the pandemic and the resulting economic uncertainty, many employers have been faced with the difficult decision of laying off employees in order to stay in business. The California Employment Development Department’s Work Sharing program helps keep Californians fully employed while relieving some of the payroll burden of their employers.

The program allows for the payment of Work Sharing Unemployment Insurance benefits to employees with reduced wages or work hours, ensuring employees are fully compensated, but allowing employers to make necessary reductions in payroll to weather difficult economic times – while retaining those valued, skilled workers.

Assemblymember Tasha Boerner Horvath’s (D-Encinitas) AB 1854 repeals the January 1, 2024, sunset date for the program’s streamlined, online application process. Since the establishment of the program in 1978, applications were required to be sent by U.S. mail to be processed. This bill effectively makes the new online process permanent and encourages more employers to make use of the vital program.

“EDD’s Work Sharing program helps employers keep employees on the payroll and be in a better position to recover once conditions improve,” Boerner Horvath said.

“AB 1854 simply ensures that employers can continue to make use of the streamlined online application to retain their talent. Thank you to Governor Newsom for signing this important legislation that helps California workers keep their jobs during tough times.”

The new, streamlined online application process was established through another of Boerner Horvath’s bills, AB 1731, which was signed into law in September 2020. This brought EDD’s Work Sharing program application process into the 21st century, making it easier than ever before for employers to get enrolled quickly and retain skilled employees.

Assemblymember Tasha Boerner Horvath represents the 76th District, which encompasses Camp Pendleton, the Sleeping Indian area of Fallbrook, Oceanside, Vista, Carlsbad, and Encinitas. You can learn more about Assemblymember Boerner Horvath at a76.asmdc.org.