April 17, 2020

2020 – 04/15 – What are the key distinctions between layoffs and furloughs?





As businesses across the country grapple with the economic fallout from the coronavirus (COVID-19) pandemic, many are facing the difficult choice of whether to lay off employees or furlough them. Layoffs are the ostensibly permanent termination of employees, while a furlough is a mandatory or voluntary suspension from work without pay for a specified period. Before furloughing workers, investigate whether you need to remit a “final” paycheck and how medical coverage is affected under COBRA and the Affordable Care Act. If you’re a midsize employer thinking about layoffs, be sure to comply with the Worker Adjustment and Retraining Notification Act.

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