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Employers Weigh Layoffs Versus Furloughs Amid Covid-19 Pandemic

March 25, 2020, 10:56 AM

Employers are already shedding payrolls in response to the coronavirus pandemic, leaving many businesses faced with the difficult decision between layoffs and furloughs.

New Consequences: Layoffs may trigger required notice and severance payments, as well as earned vacation and benefits payouts. Furloughs—or temporary layoffs—leave open similar questions, as well as uncertainty about health care obligations, Fatima Hussein reports.

Worker Protections: Employees who have their jobs eliminated or hours reduced generally have the right to unemployment insurance benefits, regardless of whether it’s temporary or permanent.

CORONAVIRUS UPDATES

  • Since the first U.S. case of the new coronavirus was reported on Jan. ...

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