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Littler Mini Guide - How to Handle Furloughs


Littler Mini Guide - How to Handle Furloughs

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.