During periods of economic downturns or fluctuations in the economy, employers may consider furloughs as an option to control costs. For example, at the height of the COVID-19 pandemic, furloughs rose as companies experienced slowdowns or reductions in their business operations and resulting economic challenges.

This Littler Mini-Guide addresses some of the common issues employers may face when considering furloughs, such as whether to reduce the days or hours of work or reduce full weeks of employment; the impact of furloughs on the exemption status of employees; whether federal or state WARN statutes are triggered; continuation of benefits during furloughs; the availability of unemployment compensation; alternatives to furloughs; and more.

Also included in this Mini-Guide are practical materials employers can tailor for their workplace, including a Notice Not to Work During Furlough, Notice regarding Reduction in Pay/Hours/Reclassification, 50 State Survey on Unemployment Eligibility During Furlough.