Following the 2008 financial crisis, several U.S. states implemented work-sharing arrangements to avoid mass layoffs at companies whose business suddenly dried up. Instead of laying off a portion of workers, companies reduced hours for several workers by 20 to 40 percent. The local government then compensated those workers for a certain percentage of their lost wages, often 50 percent. This approach worked well in some places, saving employees and companies the disruptions of firing and rehiring at the whim of the business cycle.
