Due to lack of work we are asking all of our employees to use vacation time. When the vacation time is expended and we have no work for the men can we tell them to "just stay home and wait" when we have work we will call them back? Or do we need to do temporary layoffs so that the employees are eligible for unemployment?

To be fair about it to the employees they should be laid off. There is a one week waiting period when no benefits are paid out to the workers. But week 2 they will be eligible for benefits. This way should the company need people in case things do pick up, the employee won't be sitting at home not earning anything while waiting.

Also the benefit is for one year and then the one week waiting period starts all over again. This way when they are "laid" off again, they don't have to wait to get benefits, just filing the paperwork.

I'm in Ohio and some of the companies even years ago would do this for their employees. These companies would essentially shut down over the Xmas holidays for 3 weeks or other slow times. They are in the auto parts industry. The workers were glad to have the time off with pay (even if only half pay) and have a job to go back to when called back.

Of course, some employees may take the time to seek employment elsewhere when they are laid off, but not all will do this.

Much better PR for the company and better morale if you ask me.