Furlough Agreement Requirements

Furlough Agreement Requirements: A Guide for Employers and Employees

The COVID-19 pandemic has caused unprecedented disruption to the global economy, and many businesses have had to furlough their employees as a result. If you are an employer or an employee who has been affected by furlough, it`s important to understand the legal requirements of a furlough agreement.

What is a Furlough?

A furlough is a temporary leave of absence from work, usually without pay. Furloughs are often used by employers in times of economic hardship or when there is a lack of work available.

A furlough is different from a layoff, which is a permanent separation from employment. Furloughed employees are still technically employed by their employer, but are not working and are not receiving pay.

Furlough Agreement Requirements for Employers

If you are an employer who is considering furloughing your employees, there are a few important requirements to keep in mind:

1. Provide Written Notice: Employers are required to provide written notice to their employees before implementing a furlough. This notice should include the reason for the furlough, the expected duration, and other relevant details.

2. Comply with State and Federal Laws: Employers must comply with all state and federal laws related to furloughs, including those related to wage and hour laws, benefits, and unemployment insurance.

3. Consider Alternative Options: Before implementing a furlough, employers should consider alternative options such as reduced work schedules, job sharing, or telecommuting.

4. Communicate with Employees: Employers should maintain open communication with their employees throughout the furlough process, including providing updates on the status of the furlough and any changes to the expected duration.

Furlough Agreement Requirements for Employees

If you are an employee who has been furloughed, there are also requirements that you should be aware of:

1. Understand Your Rights: Furloughed employees are still considered employees of their employer and are entitled to certain rights, such as access to unemployment benefits and the ability to be called back to work.

2. Follow the Terms of the Furlough Agreement: Furloughed employees are typically required to follow certain terms of the furlough agreement, such as not working for another employer during the furlough period.

3. Stay in Communication with Your Employer: Furloughed employees should maintain open communication with their employer throughout the furlough period, including providing updates on their availability and any changes to their contact information.

4. Prepare for the End of the Furlough: Furloughed employees should prepare for the end of the furlough period, including staying up to date on any updates from their employer and preparing to return to work if called back.


Furloughs can be a difficult and uncertain time for both employers and employees, but understanding the legal requirements of a furlough agreement can make the process smoother and more manageable. Employers should provide written notice and comply with state and federal laws, while employees should understand their rights and follow the terms of the furlough agreement. With open communication and preparation, the furlough period can be navigated successfully.

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