Use when a graph is a connected graph where "layers" L0 … Lk partition the vertices. Do not use with a layered graph drawing. If you have any doubts then don't use this tag.
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Definition: (NIST)
A connected graph where "layers" L0 … Lk partition the vertices. Each edge, which has a nonnegative integral weight, connects only vertices in successive layers. The width is the greatest number of vertices in any layer, i.e., MAXi=0k |Li|.
References
Layered Graphs: Applications and Algorithms (pdf)