Shared-work compensation (SWC) can provide a method whereby layoffs and unemployment may be avoided by reducing all workers' time. As compensation, workers receive a comparable percentage of their unemployment insurance benefits. Although Western European countries have used work-sharing programs and Canada has implemented an experimental SWC program, the United States has had limited experience with SWC. Each of the groups--labor, business, and government (taxpayers)-- that could in some way be affected by SWC have an interest in and concerns about the program. Their unresolved questions are of two broad types: those relating to administrative and operational considerations and those relating to program impacts on the various interest groups. To learn about SWC in a real-world context, a demonstration should be planned as a comprehensive, voluntary, entitlement program replicated in several sites. A suggested demonstration design is based on a state model. Regulations would be required in three areas--employer eligibility, employee eligibility, and benefit calculation and payments procedures. A minimum of four sites would be chosen to provide variation. Evaluation should include an analysis of the process of implementation and operations and a quantitative participation and impact analysis for the respective groups. (YLB)