Pretty common. Typically the company will lay someone off, so there would be unemployment one way or the other. The only difference is it allows some workers to choose it who want it, rather than forcing it upon folks without any choice.
Where my wife works, one of the cooworkers goes to visit her daughter a 1/2 a country away for 2-4 weeks every winter. She does it on this layoff time. Instead of 4 people getting laid off for a week each, this one gal gets 4 weeks of layoff, the other workers get to keep their full pay. All 4 are happy. Makes no difference to the comany or to unemployment - going to be the same amount of claims either way.
Lot of seasonal type of jobs around here, so unemployment for a few months with rolling layoffs, followed by overtime for the same employees for a few months is common. Here.
What you describe sounds like a normal job 'here', nothing ilegal or unusual about it. The company needs 25% reduction in workforce for a month or 3 - options are to take some vacation or layoff - if their are not enough who volinteer to do so, then it is rotated through the remaining employees who didn't volinteer. Every year. In fall, you end up working 50, 60, sometimes 70 hours a week on time & 1/2. Same job.
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