Furloughs can be paid (i.e., by the employer with continuing payroll or by requiring employees to use vacation) or unpaid (for non-exempt employees only if less than the entire workweek and for exempt employees only if the furlough is a full and entire workweek). However, while there are no set legal restrictions attached to how long you can furlough, there are several matters of best practices that you should keep in mind when asking this question. For example, the Illinois Wage Payment and Collection Act requires payment upon “separation,” which is not implicated by a furlough. But these moments of high stress are the ones that matter most. 751, and may be subject to criminal prosecution and institution disciplinary action. Suite 300, Rolling Meadows, Illinois 60008 Businesses should consult with their banks regarding availability of lines of credit and other needs. Employers can implement furloughs without giving employees notice. Some exceptions apply. Fax: 847-253-8822 A furlough may also implicate other employment laws such as the Fair Labor Standards Act, which, amongst other things, provides for the circumstances where employees may be exempt from overtime pay. Chicago employees may use paid sick time to care for children and adults. It can be easy to make mistakes and run afoul of the law or sound business practices when you feel rushed to take action, especially when it seems like there is a new federal law or municipal order being released every day. These tools allow us to track new or past website visitors and help us to understand how users move around our website. Your company reputation is important, so saving face and only using furloughs for reasonable periods of time can go a long way in allaying employee fears, staving off anger, and maintaining your reputation. Make hand sanitizer and tissues available. While other states may vary, Illinois requires that employers pay out any accrued but unused vacation time or PTO once an employee is terminated. We recommend assembling a management team to determine best next steps and implement an emergency plan. Illinois state laws have a more conservative view of which employers should have to comply with the WARN Act: “The Illinois WARN Act requires employers with 75 or more full-time employees to give workers and state and local government officials 60 days advance notice of … Is an employer that lays off or furloughs employees because of COVID-19 subject to Illinois’ mini-WARN law requirements? The material is for informational purposes only and does not constitute legal advice. during a furlough. In 2001, Tellabs faced a severe econimic downturn and one of the options it selected to stem the crisis was to require all employees to take certain furlough days. If not available, consider allowing employees to borrow vacation time and whether such borrowing of vacation time should be subject to a repayment agreement. Estimates differ, but news sources largely reported that hundreds of thousands of government employees were furloughed during this period. (a) An inmate who violates the conditions of a furlough may be considered an escapee under 18 U.S.C. New Year, New Name… LET’S CHART A NEW COURSE TOGETHER! Notably, the Illinois employee must be offered, in writing, 21 days to think over signing the agreement, regardless of the employee’s age. And the answer is likely yes. So, if you want to institute a proper furlough, make sure you communicate to your employees that absolutely no work is to be done during its duration. As you assemble your personalized eBriefcase, you may drag to reorder or delete items. The coronavirus pandemic is creating quite a lot of chaos within the labor and employment world. In the event of a furlough, employers need to be careful that they do not assign any work and that employees do not perform any work such as checking emails, client follow up, etc.