A furlough is a temporary leave of absence imposed by an employer, often due to financial constraints, economic downturns, or emergency situations. Unlike layoffs, furloughed employees remain employed but are not actively working or receiving pay. In California, furloughs must comply with state labor laws, including wage, benefits, and unemployment rights. This blog post explains what furloughs are, how they affect employees, and legal protections under California law.
What Is a Furlough?
A furlough is a temporary suspension of work where employees remain on the company’s payroll but are not actively working.
Key Characteristics of a Furlough
- Employees are not permanently terminated.
- Employers may implement reduced hours or unpaid leave.
- Employees may still receive benefits like health insurance.
- Furloughs can last days, weeks, or months, depending on the employer’s needs.
Employee Rights During a Furlough
1. Unemployment Benefits
- Furloughed employees can apply for unemployment benefits in California.
- The amount depends on past earnings and work history.
- Employees should apply through the California Employment Development Department (EDD).
2. Health Benefits
- Employers may continue to provide health insurance benefits during a furlough.
- Employees should confirm coverage status with their employer.
3. Final Paycheck and Accrued Vacation
- Unlike layoffs, employers are not required to pay out accrued vacation or final wages unless the furlough becomes permanent.
- If an employer misclassifies a layoff as a furlough, they may violate California wage laws.
Employer Responsibilities Under California Law
Employers implementing furloughs must:
- Comply with wage and hour laws, including exempt employee salary requirements.
- Provide proper notice if furloughs affect a large number of workers under the WARN Act.
- Not discriminate against employees when selecting who is furloughed.
A furlough is a temporary leave of absence that allows employers to manage costs while keeping employees on payroll. If you are furloughed, you may be eligible for unemployment benefits and continued health insurance. If you believe your employer misclassified your furlough or violated labor laws, Law Advocate Group, LLP can help. Contact us today for expert legal guidance on employment rights.
