The Difference Between Furlough and Layoff

Furloughs and layoffs are actions taken by an employer. Typically, these actions are taken to ease the pressure of short-term financial burdens on the employer’s business. Employers may decide to use either a furlough or a layoff depending on various factors related to unfavorable financial circumstances or due to a lack of available work. For employees who are either furloughed or laid-off, the distinctions between the two are important to know.

Layoff
Generally, a layoff is a separation of employment which may be either permanent of temporary. In the case of a layoff, the worker no longer on the company payroll, but may be rehired sometime in the future.

Furlough
A worker that is furloughed remains an employee of the company. However, the worker is typically forced to take a break from work without pay or take a reduction in the hours that worked.

Do I Need an Attorney if I am Furloughed or Laid-Off?
There are many legal considerations surrounding labor and employment. Here, it’s important that employers handle a layoff or furlough appropriately. Also, recent emergency orders that you may not be aware of may impact the nature of any furlough or layoff. If you feel that you have been furloughed or laid-off inappropriately or are unsure if you have been appropriately laid-off or furloughed, you should consult with an attorney that is experienced with labor law.

As an Employer, Do I Need an Attorney Before I Layoff or Furlough an Employee?
To avoid costly exposure to liabilities, as an employer, speaking to an experienced and qualified labor attorney could save your company time and money. Here, it’s always better to get the right advice to avoid a potential legal issue than to deal with a legal issue after an inappropriate layoff or furlough.


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