With millions of workers unemployed and more likely to come during this economic shutdown, companies have been deciding between placing their employees on furlough or laying them off. Many retail companies like Macy’s, Kohl’s, Gap and Nordstrom as well as some in the hospitality industry such as Marriot and AMC Theatres have opted to furlough thousands of their employees instead of laying them off. But what exactly does being furloughed mean, and how does it differ from being laid off?<\/p>\n\n\n\n
What is a furlough?<\/strong><\/p>\n\n\n\n A furlough is a temporary, company-mandated, unpaid leave from work. Employers usually opt to furlough employees as a cost saving measure which could last a few weeks or a couple of months. During this period, a furloughed employee remains more likely to be entitled to receiving employment benefits such as health insurance and 401(k) contributions.<\/p>\n\n\n\n