Furloughs, Layoffs, Reducing Work Hours During Economic Uncertainty

In this episode of The Workplace podcast, CalChamber Associate General Counsel Matthew Roberts, Senior Employment Law Counsel Erika Barbara and Employment Law Subject Matter Expert Vanessa Greene discuss employers’ questions about furloughs, layoffs and reducing employees’ work hours to manage workforces during times of economic uncertainty while still being able to conduct business.

When making these decisions, employers need to be aware of not only California law but also local and federal laws. It can get complicated!

On the podcast, our employment law experts tackle questions that include:

• Can employers reduce an employee’s work hours and if so, what notice is required?
• What to consider when reducing exempt or salaried employees’ work hours?
• If an employer keeps employees on their payroll but temporarily reduces their work hours to zero — known as a furlough — what should they be aware of?
• Is there a time limit for when a furlough becomes a layoff?
• What are the rules around layoffs?
• Are employees entitled to be rehired after they’re laid off?

Navigating economic downturns can be challenging for employers so it’s important to be thoughtful and measured when evaluating and implementing different actions, to make sure not to inadvertently create compliance issues. Employers need to be aware of their wage and hour obligations as well as meeting any final pay requirements.

It’s also important to think about how employers are communicating changes to their teams because it can have an impact on the company’s morale. Trying to be empathetic, being honest with workers about what’s happening and giving employees as much advance notice as possible are just a few things to do.

CalChamber Preferred Members and above can reach out to our Labor Law Helpline for any compliance questions, including furloughs, layoffs, reducing work hours and more. Not a member? See how CalChamber can help you.