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Workplace Word: March 2009 - Furloughs Are a Potential Alternative to Layoffs

03/20/2009

In today's economic climate, employers are looking for ways to reduce their labor costs without terminating their valued employees. One potential way to do that is to implement a furlough: a temporary, but mandatory, unpaid leave for employees. Furloughs are grabbing headlines in this economic environment. Perhaps one of the most prominent instances occurred recently in the public sector when Governor Arnold Schwarzenegger mandated unpaid furloughs for many of California's state employees. The private job sector appears to be following suit. While furloughs can be an attractive option for employers looking to reduce payroll expenses, they can also present a host of legal complications for employers. Careful consideration is advised for employers looking to implement this latest cost cutting measure in the workplace.

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