Advice on 'furloughs' and health insurance during COVID-19

Q         We are concerned we may need to furlough several employees in the upcoming weeks. What considerations should we be aware of when furloughing employees?

A   In the collective bargaining context, a “furlough” generally refers to a temporary layoff in which employees have certain recall rights, but the term has no legal meaning outside that context. A “furlough” is no different from a layoff; it's simply a separation from employment or termination. In the current COVID-19 environment, however, many employers are using the term to refer to employees being placed on a sort of temporary unpaid leave of absence, which in some cases may involve the continuation of certain benefits such as health insurance.

Some employers are allowing their employees to use vacation or paid time off (PTO), even intermittently, to continue their pay for as long as they can while on furlough. Some employers aren't allowing that option, but if an employee were to quit while on furlough, most states, including Louisiana, would require the employer to pay out her unused vacation and PTO.