Many companies and state governments are turning to furloughs as an alternative to laying off employees. Besides the obvious benefit of keeping workers employed, other potential benefits include not having to rehire and retrain employees when business improves; cutting overtime costs; avoiding the cost of paying severance; and avoiding potential legal risks associated with.
Furloughs are not without fault, though. Layoffs or other cost-cutting measures may still be needed, and employees may be disheartened by the loss of pay. It is important that you understand the payroll aspects of a furlough before rolling out the plan; otherwise, you risk violating the federal Fair Labor Standards Act ().
Pay for furloughed non-is straightforward. Non-exempt employees need only be paid for hours worked; they don't work, you don't need to pay them.
It's a bit more complicated when it comes to...(register to read more)