{"id":357792,"date":"2020-04-03T08:56:38","date_gmt":"2020-04-03T13:56:38","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/losing-a-job\/can-you-get-unemployment-if-you-re-furloughed.html"},"modified":"2024-05-22T15:41:24","modified_gmt":"2024-05-22T20:41:24","slug":"can-you-get-unemployment-if-you-re-furloughed","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/losing-a-job\/can-you-get-unemployment-if-you-re-furloughed.html","title":{"rendered":"Can You Get Unemployment if You’re Furloughed?"},"content":{"rendered":"\n
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Can You Get Unemployment if You're Furloughed?<\/h1>\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

When a disaster strikes, companies and small businesses may be forced to shut down temporarily. In such cases, not all employers are financially able to ask you to work from home or give you paid time off. Instead, they may have mass layoffs or offer unpaid leaves of absence \u2014 or what is otherwise called a furlough \u2014 for a specific period.<\/p>\r\n

Unemployment laws can change during times of national emergency and economic hardship. The federal government sometimes steps in to enable furloughed employees to receive unemployment benefits. This happened, for instance, during the height of the COVID-19 pandemic.<\/i><\/p>\r\n

What Is a Furlough?<\/h2>\r\n

Furlough is a temporary pause in work for a specified period of time. Employers and employees often arrange for employees to take unpaid leave of absence during the furlough period. For instance, an employer may ask an employee who works 40 hours per week to take a five-day furlough during the first week of July. Once the period ends, the employee can return to work under a regular schedule.<\/p>\r\n

What Are the Two Types of Furloughs?<\/h2>\r\n

According to the U.S. Office of Personnel Management (OPM)<\/a>, there are two types of furloughs: administrative and shutdown.<\/p>\r\n

An administrative furlough is a strategy implemented by a company or an agency to manage reductions caused by insufficient work, downsizing, reduced funding, or any financial constraints not due to a lapse in appropriations. Furloughs caused by budget cuts fall under administrative furlough.<\/p>\r\n

Meanwhile, a shutdown or emergency furlough happens when funding is not approved. It can occur at the beginning of a fiscal year without an approved budget. It can also happen if no appropriations law or new resolutions exist, even after a continuing resolution. When this happens, the agencies affected should stop all activities. Often, agencies have minimal time to prepare for a shutdown furlough.<\/p>\r\n

What is the Difference Between a Layoff and a Furlough?<\/h2>\r\n

When a company lays off an employee, their employment permanently ends. Their health insurance, paid time off (PTO)<\/a>, and other employment benefits also cease. For laid-off employees, the employer-employee relationship ends, and this lasts indefinitely.<\/p>\r\n

Conversely, a furlough only lasts for a certain period. Employees often return to their regular schedules once the furlough period ends. A furloughed employee still counts as an existing company employee and retains their health insurance and employment benefits. Although the duration of the furlough period varies, it often lasts from a few weeks to six months. During a furlough, employees usually keep their seniority and return to the same pay level they once were.<\/p>\r\n

Do You Get Paid if You Are on Furlough?<\/h2>\r\n

Your employment status affects whether you get paid while on furlough. In the United States, laws classify employees as either exempt or nonexempt.<\/p>\r\n

Exempt or Salaried Employees<\/h3>\r\n

Under the Fair Labor Standards Act (FLSA)<\/a>, employers should pay exempt or salaried employees their full salary for any work week. This rule applies regardless of the work hours they spent that week. So, employers should furlough exempt employees in full weekly increments if they want to save costs.<\/p>\r\n

During that week, exempt employees under furlough should not work at all. Employers may even restrict them from using employer-issued devices or accessing work-related programs. Employers often take measures to ensure that exempt employees do not engage in any work during the furlough period. If exempt employees do not render work during that week, employers do not have to pay them.<\/p>\r\n

Nonexempt or hourly employees<\/h3>\r\n

Hourly or nonexempt employees have more flexible arrangements. Employers can reduce their work hours without the need to pay for a full week’s salary. This means the law allows hourly employees to work fewer hours per day or week. Employers should only pay nonexempt employees for the hours they worked during that week.<\/p>\r\n

What Are My Rights as a Furloughed Employee?<\/h2>\r\n

As a furloughed employee, you have the following rights:<\/p>\r\n