A Coronavirus Reality: Furloughs

Last Updated on March 18, 2020 by G. T. HR

Employer COVID-19 Concerns

A Coronavirus Reality: Furloughs

With the reality of the COVID-19 pandemic literally “hitting home,” a number of employers are considering , or already have begun, the process of placing large numbers of their employees on furlough or terminating employment altogether.

As we monitor the situation, new information will continue to surface and we will try to keep you informed. Employers moving through this process must work with their HR professional and legal counsel to respond to the myriad issues raised by furloughs or layoffs.

We know that employers currently don’t want to lose their talent, but many are in a situation they can’t pay them due to lack of work. They may be electing to put them on a furlough. There are a few things that are important to know.

  • If an employer wants to continue the benefits for employees and not offer COBRA, they may need to make amendments to their Health Plans due to the employees no longer meeting the plan’s definition of a “full-time” employee. These changes would also need to be approved by the company’s insurer.
  • An employee on furlough may still file for unemployment.

In addition to these points, we found this  helpful article for further information and things to keep in mind.