Even temporary layoffs may trigger COBRA notice requirements as most fully-insured group health plans provide that eligibility for coverage ceases as of the end of the month in which the layoff occurs. Employers with union employees should refer to their collective bargaining agreement to determine whether a layoff is a termination and other obligations when implementing layoffs of union employees. Whether a layoff is a termination will depend on the circumstances, such as whether the layoff is of a limited duration. In many cases, a layoff is a termination that may give rise to paying earned, but unused vacation/PTO, issuing a COBRA notice, and entitling employees to unemployment benefits. Many clients ask if a layoff is a termination. Employers can implement furloughs without giving employees notice.Ī layoff can be temporary or permanent involving continuous week(s) off. Furloughs can be paid (i.e., by the employer with continuing payroll or by requiring employees to use vacation) or unpaid (for non-exempt employees only if less than the entire workweek and for exempt employees only if the furlough is a full and entire workweek). Furloughs are typically of limited duration with the understanding that the employee is still actively employed. For non-union and non-government employers there is no legal significance to the term “furlough.” In practice, a furlough is reducing days an employee works. The most common question is whether there is a legal distinction between a furlough and layoff. Businesses are considering all options in the face of such economic uncertainty. There is no question that the COVID-19 pandemic upended business with lightening speed. Taking the Long View: Furloughs, Layoffs, And Reducing Wages While every work environment may be different and the risks may vary to some extent, we have prepared guidance to answer some commons questions that clients are asking. So much has happened that we updated our guidance, which can be found here.Īs employers receive more information about the COVID-19 pandemic, they have important questions about how to keep their employees safe at work and what are their legal obligations to do so. Last week, we issued guidance to assist employers with navigating the impact of COVID-19 on the workplace. Our complete analysis of the FFCRA can be found here. It contains sweeping emergency paid sick leave and paid FMLA requirements for employers with less than 500 employees, as well as government employers. The much anticipated Families First Coronavirus Response Act (“FFCRA”) is now law and goes into effect April 2, 2020. The Families First Coronavirus Response Act Pritzker issued a Stay-At-Home Order requiring individuals living within the State of Illinois to stay at home and to leave only for health and safety for necessary supplies and services for outdoor activities and to perform work for an essential business. On March 20, 2020, Illinois Governor J.B. In this edition of the Fast Laner, we discuss the most pressing issues facing employers right now. What a few days it has been! Only a week ago we were answering questions about how to handle an employee who has symptoms of COVID-19 and encouraging clients to create preparedness plans.
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