Mandatory Furloughs Present Long List of Legal Concerns for Employers

To avoid layoffs, many employers are instituting mandatory furloughs as a means of cutting costs during the current recession. Mandatory furloughs, which require employees to take time off without pay, are occurring more frequently in recent months across several industries and employers, including the states of California and Maryland. Littler Mendelson's Alison Hightower discusses the complicated legal issues involved in furloughs, such as the impact on salaried employees, vacation time and 401(k) plans.