‘Work Sharing’ Offers Lifeline to Companies Eyeing Virus Rebound

A little-used tool to avert layoffs called “work sharing” that lets employees tap into jobless benefits when their hours are reduced could gain traction when businesses gradually reopen.

Also called “short-time compensation,” the federally authorized program allows workers in at least 26 participating states to receive partial unemployment insurance to cover hours they’re no longer working instead of being laid off. The program has been used for decades to keep workers at least semi-employed during recessions.

Congress recently poured money into the program as part of the federal stimulus package, anticipating it could be used to combat layoffs ...