In the wake of the market disruption caused by the COVID-19
outbreak, many employers are considering employee furloughs as an
alternative to layoffs. Furloughs generally refer to a mandatory,
but temporary, cessation from work without pay, with the
expectation that the impacted workforce would return to work with
the employer in the future. This memorandum discusses key
considerations for employers and boards that are contemplating
furloughing employees.
Enhanced Unemployment Insurance
Employees who are furloughed, meet state-specific eligibility
requirements and timely apply for unemployment benefits will be
entitled to unemployment insurance benefits. In addition, the
Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES
Act), established federal funding for, among other things,
additional unemployment insurance benefits for covered individuals
in the form of up to 39 weeks of regular state unemployment
insurance benefits through December 31, 2020,
