Layoff Prevention Program Expanded In CT, Lamont Announces

CONNECTICUT — Connecticut is expanding its state Shared Work Program, which helps employers retain employees who otherwise may be laid off during tough economic times.

The program helps cover between 10 and 60 percent of an employee’s wages if hours are temporarily reduced. Prior to the coronavirus pandemic it had mainly been used by manufacturers who saw temporary downturns in business. The program enabled manufacturers to retain their skilled employees who are already hard to come by.

Gov. Ned Lamont said the program can be used by businesses like restaurants and movie theaters who haven’t seen a full return to business due to the pandemic. Lamont visited Pegasus Manufacturing in Middletown Wednesday. The manufacturer is using the program.

“This program has helped many companies over the years, and expanding it will allow these workers to keep their jobs, continue earning a paycheck, and help these Connecticut-based companies grow,” Lamont said in a statement.

Employers who have two or more workers and have had to reduce hours within 10 to 60 percent of normal are eligible for the program so long as the hours lost aren’t related to seasonal reductions. The program runs for a maximum of six months for each employee.

The program helped around 288 companies and 2,900 workers in the year prior to the pandemic, said state Department of Labor Deputy Commissioner Daryle Dudzinski. Another 1,340 companies have signed up since March and the program is now helping 24,000 workers retain their jobs in Connecticut.

The big benefit for employers outside of retaining employees is that it doesn’t increase charges for regular unemployment insurance.

Pegasus President and CEO Chris DiPentima said the company does both commercial aerospace and submarine work. In a way it’s a microcosm of the Connecticut manufacturing economy, he said. Some manufacturers are busy with military contracts, while others have seen a downturn in commercial business due to the pandemic.

“When you look around the country there are very few states that have this type of program. It’s a dynamic program that allows employers like Pegasus to dial back hours and keep their skilled workforce,” he said during a news conference.

Shelton-based OEM Control is participating in the program and it has become vital to the company, said Co-president Sam Simons.

“It enables us to keep our highly skilled workforce employed with their benefits,” he said in a statement. “We’ve used this program during economic downturns and come out better and stronger – preventing layoffs and allowing us to continue the design and manufacture of our products.”