What Is the Difference Between Layoff and Furlough?

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What Is the Difference Between Layoff and Furlough?

Employment “at-will” represents a legal doctrine that states both employers and employees have the right to terminate an employment relationship at any time, and just about for any reason. Every state has enacted some form of the employment-at-will doctrine, with the most notable exception being some states do not apply the employment-at-will doctrine to public sector employment relationships. For example, Louisiana has established the employment-at-will doctrine for private sector relationships, but not for public sector employment relationships. Another exception concerns illegal acts, such as discriminating and retaliating against workers. Employment at-will employment relationships do not cover the illegal acts committed by an employer.

Although employment at-will concerns terminating employment relationships, does the same legal doctrine apply to furloughed and laid-off workers? Despite the many differences between layoff and furlough, both types of employment actions also qualify as employment-at-will arrangements. This means an employer does not need a reason to lay off or furlough a worker, as well as not having to provide notice of implementing each type of employment action. Your employer can furlough you or lay you off at any time, for any legally valid reason.

This brings us to the central question of what is the difference between layoff and furlough. One type of employment action is considered a temporary maneuver that typically buys a company time to get labor costs under control. On the other hand, the other type of employment action is considered more of a long-term, even permanent employment action taken to adjust to a rapidly changing labor market. Whether you receive a furlough or your employer lays you off, you should know the answer to the question, “What is the difference between layoff and furlough?”

At Morgan and Morgan, our team of employment attorneys has spent more than 35 years educating clients about the differences between layoff and furlough. We explain the implications of both types of employment actions, as well as determine whether an employer followed the employment-at-will legal principle when issuing either type of employment action. As with termination, an employer cannot furlough or lay you off for discriminatory and/or retaliatory reasons.

Schedule a free case evaluation to decide whether your employer violated labor law by issuing a furlough or by laying you off.

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