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Nov25

Unemployment Compensation for furlough?

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Our company is looking for options regarding layoffs for exempt employees. If we enforce a mandatory unpaid leave of absence (or furlough) for one week for each exempt employee, is that employee entitled to unemployment compensation for that week? We are in Pennsylvania.

In Pennsylvania as in most states, there is a one-week waiting period for unemployment benefits. Employees do not qualify for unemployment benefits during that week. So you can impose a one-week furlough or mandatory unpaid leave of absence for exempt employees, without triggering unemployment benefits.

An exempt employee need not be paid for any week in which he or she does no work at all.

Many employers are using this strategy in an attempt to avoid layoffs. If the company finds it necessary to save more money, we recommend two separate fugloughs, each one week long. Employees can collect unemployment for part of a two-week furlough, but not for a one-week furlough.

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This entry was posted on Wednesday, November 25th, 2009 at 11:08 am and is filed under
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One Response to “Unemployment Compensation for furlough?”

  1. Unemployment Compensation for furlough? | India BPO Says:
    November 25th, 2009 at 2:31 pm

    […] here: Unemployment Compensation for furlough? […]

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