In today’s unpredictable economic climate, many companies are faced with the difficult decision to furlough employees. But what does it really mean to be furloughed, and how does it affect your rights as an employee?
For many employees, the uncertainty of a furlough can be confusing and stressful. It is important to understand your rights and protections during this time, and when it might be necessary to seek legal counsel.
What Happens During a Furlough?
A furlough is a temporary, unpaid leave of absence initiated by an employer. Unlike a layoff, it does not sever the employment relationship. Instead, furloughed employees remain on the company’s payroll, with the expectation of returning to work once conditions improve. However, during a furlough, employees do not receive their usual salary and are typically not required—or allowed—to perform work for the employer.
While furloughs are intended to be temporary, they can last weeks or even months. Employers often use this measure to avoid permanent layoffs while reducing operational costs. Although a furlough can be less severe than a layoff, it still has significant impacts on employees, including potential loss of income and uncertainty about the future.
Common Questions Employees Might Have About Furloughs
When faced with a furlough, employees often have several pressing questions. Here are some of the most common ones:
What rights do I have during a furlough?
Employees retain certain rights while on furlough, such as the right to return to work when business resumes, but specifics can vary based on employment status, company policies, and federal or state laws.
Employees are protected from discrimination in furlough decisions, and those with employment contracts or union agreements may have additional rights. While job security during a furlough is not guaranteed, employees often retain their status and seniority.
Employers are generally not required to allow the use of PTO, but some may offer it as an option.
Am I entitled to unemployment benefits while furloughed?
In many cases, furloughed employees are eligible for unemployment benefits, even if they are only partially furloughed (e.g., reduced hours). Factors like your prior income, the length of your employment, and your state’s specific guidelines will determine the benefits you receive.
The North Carolina Division of Employment Security (DES) and South Carolina Department of Employment and Workforce (DEW) manage unemployment claims and can assist furloughed employees with benefits.
Can my employer require me to work while I am furloughed?
If you are officially fully furloughed, your employer cannot require you to perform work-related tasks. Doing so could lead to wage-and-hour violations.
Is my employer obligated to continue my health insurance or other benefits?
This can vary depending on the company’s policies, but employers in North Carolina and South Carolina are not legally required to maintain health insurance for furloughed employees. However, the federal COBRA law usually allows furloughed employees to temporarily continue their health coverage at their own expense if the employer stops coverage.
Was Discrimination Involved in Your Furlough?
It is important to consider whether your furlough was implemented fairly or if it was influenced by discrimination. Employers are prohibited from making employment decisions, including furloughs, based on protected characteristics. If you suspect that you were furloughed due to your age, race, gender, or disability status, it may be a violation of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), or the Americans with Disabilities Act (ADA).
Furloughs should be applied evenly across the workforce, without unfairly targeting specific groups. If you have concerns that discrimination played a role in your furlough, documenting your experience and speaking with an employment lawyer is a crucial first step in protecting your rights.
Is Your Employer Complying With Labor Laws?
Furloughs must comply with a range of federal and state labor laws. For example, under the Fair Labor Standards Act (FLSA), employers cannot ask furloughed employees to work without proper compensation. Non-exempt workers must be paid for any hours worked, even if they are on furlough. Additionally, exempt employees—those paid a salary rather than an hourly wage—must be compensated for any workweek in which they perform any duties, even answering emails or attending brief meetings.
How An Employment Lawyer Can Assist
Other than clarifying your rights, an employment lawyer at The Noble Law can assist you in filing complaints with the appropriate agencies, such as the Department of Labor and the Equal Employment Opportunity Commission (EEOC). If necessary, your lawyer can guide you through the process of pursuing a lawsuit against your employer for damages stemming from wrongful furlough practices.
In some cases, disputes can be resolved amicably without going to court. Our employment lawyers are skilled negotiators who will advocate on your behalf to reach a settlement that addresses your concerns, such as compensation for lost wages or lost benefits or entitlements.
Contact Us For A Consultation
Furloughs are intended to be a temporary solution during difficult times, but they can also come with complex legal concerns. If you are uncertain about your rights or believe your employer is not adhering to the law during your furlough, reach out to The Noble Law to schedule a consultation with an experienced employment attorney today.
We listen, understand, and provide trusted counsel for workplace disputes, giving you the support you need during these challenging periods.
About The Noble Law Firm
The Noble Law is a women-owned employment law firm with offices in North Carolina and South Carolina, founded by Laura Noble in 2009. Specializing in wrongful termination, workplace harassment, workplace retaliation, workplace mediation, and neutral third-party investigations, the firm is committed to leveling the playing field for employees. Their focus is on delivering positive outcomes with empathy and integrity, while also driving societal change in employment law.
The firm emphasizes diversity, collaboration, and innovation, fostering a balanced work environment that values the personal lives of its staff. With a strong commitment to technology and efficiency, The Noble Law provides personalized attention to a select group of clients, handling cases involving harassment, discrimination, retaliation, and more. The team’s extensive litigation experience allows them to deliver thorough and assertive representation.
