While unemployment has skyrocketed as the United States aims to contain the coronavirus pandemic, many Americans are asking what resources are available to them if they are furloughed by their employer. This isn’t the same as being laid off or fired. Because of this, the steps you would have to take afterward are different.
We thought we’d take a look at what exactly a furlough is, what it means and what benefits consumers are eligible for should they become furloughed. Here’s what you need to know:
Furloughs 101
When a worker is furloughed, they still technically remain an employee of that company, but they’re not paid and can’t work for the duration of the furlough time. However, when the furlough period ends, the employee will return to the company. Though employees are not paid during their furlough, they may still receive health benefits, however that is up to the specific employer.
Just think of a furlough as an unpaid leave of absence, however it’s not up to the employee to determine their return date. A layoff, conversely, is normally an involuntary permanent loss of employment that often results from an employer cost-cutting or downsizing.
Furloughs are more common with seasonal workers, but they’ve become a popular way for employers to slash costs as their businesses have temporarily closed or slowed, yet make every possible effort to ensure that their workers will have a job to return to when things stabilize. In some cases, a furlough may turn into a layoff, but generally if an employer is opting to furlough rather than layoff workers, it’s a sign that they believe such cost-cutting measures are sufficient.
If I’m Furloughed, Can I Collect Unemployment?
The answer to this question is “yes,” and if you have been furloughed as a result of the pandemic, you’ll receive state-specific benefits based on your previous earnings for up to 39 weeks thanks to the $2 trillion CARES Act that was recently passed by Congress. The benefits for furloughed workers also includes the extra $600 per week through July. Even if your employer is maintaining your benefits during your furlough period, you can still claim unemployment benefits.
If you’re furloughed, you can also look for other work. However, if you’re able to secure employment elsewhere during your furlough period, you may see your unemployment benefits adjusted accordingly. If you believe your furlough is going to be short-term, and the unemployment benefits you’ll receive are enough to live off of in the meantime, be sure to assess whether or not it’s worth it to seek other employment.
It’s estimated that up to half of all American businesses are either laying off or furloughing employees during this crisis, so it’s important that you know the difference between the two and what you’re eligible for should you face either. The good news is that Congress has taken historical steps to help financially bolster American workers during these unprecedented times. And in the hope that the economic impact is sharp and brief, here’s to being optimistic that America can get back to work much sooner rather than later.
