Q - A: 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?

Outside the collective bargaining context in which a "furlough" generally refers to a temporary layoff in which employees have certain recall rights, the term has no legal meaning. A "furlough" is no different from a layoff; it's simply a separation from employment or termination. However, in the current COVID-19 environment, 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 like health insurance. Some employers are allowing these 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.