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RPJ Law: Considerations for Employers Contemplating Employee Furloughs or Reductions in Force

Many employers are rightfully concerned with how best to manage the business and financial impact and implications of the COVID-19 outbreak and resulting closures and dislocations. Some are considering temporary furloughs of workers as an alternative to terminations or reductions in force (“RIFs”).

RPJ is here to counsel clients on employment and business matters in response to this crisis, and they have drafted THIS (full) MEMORANDUM containing a general overview of these employer options and laws that are implicated to be a helpful tool in decision-making, including:

  • Differences between furloughs and RIFs, and other alternatives
  • Continuation of health insurance coverage
  • Legal notices required to be provided in advance of furloughs or RIFs or on termination
  • Unemployment insurance
  • Use of vacation time
  • Use of sick time, short-term disability benefits and FMLA, including discussion of new leave laws passed at the federal level and in New York
  • Implications of furloughs or RIFs for employees on leave
  • Employment contracts, handbooks and policies
  • Remaining compliant with wage and hour laws during a furlough
  • Considerations for foreign workers

RPJ’s memorandum is a general discussion of these matters only and is not to be considered legal advice or relied upon without direct attorney guidance concerning any particular situation. We focus on federal and New York law, which are both evolving on a frequent if not daily basis.

Please feel free to contact RPJ Law if you have questions or need further guidance. The attorneys of their Employment Practice Group would be happy to assist.

Compliments of Reavis Page Jump LLP – a member of the EACCNY.