Furloughs Are Wage and Hour Traps?

Some employers are trying to avoid layoffs by using furloughs as a cost-saving measure that allows them to retain their employees. Instead of working five days a week, employees are furloughed for a day, which means they’re only paid for four days.

As the New York Times reports, furloughs aren’t working out so smoothly. Everyone knew there would be a problem for employees who worked on days when coworkers were furloughed. There would be the same amount of work with fewer employees to do it. Other problems perhaps weren’t anticipated.

Because employees fear they may eventually laid off, some work on furlough days even though they’ve been specifically directed not to. These employees think their employers will take note of their dedication and be spared when it’s finally decided that layoffs are necessary. It’s not just the added fear factor these employees must endure, it appears that some of them aren’t being paid for furlough days even when they’re working. An employee who’s trying to impress his employer by showing up on a furlough day for work isn’t likely to complain about not being paid.

The problem is, of course, that the failure to pay these employees for days they work may very well be a violation of the Fair Labor Standards Act (FLSA). If the employees are non-exempt, they must be paid for the hours worked, including any overtime hours. If an employer tells furloughed non-exempt employees not to work on certain days but then allows them to, that’s an FLSA violation. State laws may also come into play. If these employees do eventually lose their jobs, they’re then likely to report the employer to the U.S. Department of Labor or a state agency.

If you’re going to use furloughs to avoid layoffs, use them lawfully. There’s no need to cut off your nose to spite your face.