Employee Furloughs, Salary Reductions, and Voluntary Separation Programs: Questions for Employers Looking to Avoid More Layoffs Webinar

From state governments to Fortune 500 companies, employers are implementing mandatory employee furloughs to create immediate cost savings and avoid layoffs. Furloughs (leaves of absence imposed by employers on employees) can significantly reduce short-term costs; when mismanaged, however, they can also reduce "mission critical" productivity, quality control, and employee morale and can set the stage for costly employment litigation. Voluntary separation programs, while preferred by some employers, are similarly fraught with legal and practical problems.

Morgan Lewis's Labor and Employment Practice presented a one-hour webinar addressing significant questions employers should ask as they look to cut expenses quickly and effectively, including:

• Has a cost/benefit analysis of a companywide furlough plan versus a strategic reduction in force been conducted?
• Will the furlough or salary reduction jeopardize the exempt status of employees? 
• Is there an operational strategy and communications plan in place to explain these changes to both internal and external audiences before these measures are implemented? 
• How does the presence of a union bargaining agent impact the implementation of these measures? 
• How do furloughs and salary reductions affect employee benefits? 
• Do state laws differ with the terms of a furlough arrangement? 
• How can an employer implement a voluntary separation program without incurring liability?