Covid-19 Forces Employers to Weigh Layoffs Versus Furloughs

Businesses on the verge of cratering during the coronavirus pandemic are faced with the difficult decision to either lay off workers or provide furloughs as they try to manage the uncertainty of the weeks and months to come.

Marriott International, Virgin Atlantic Airways, and Delta Air Lines have all announced plans to furlough tens of thousands of employees—effectively sidelining them with no pay, but keeping them on the payroll. Others are cutting ties with workers altogether, citing uncertainty about if or when they will be able to put employees back on the payroll.

Business attorneys say there’s often little ...