What are California’s Furlough Laws?
California implemented laws around furloughing an employee in the workforce. Here’s everything you need to know about California furlough laws.
Furlough, or “layoff,” varies in legal processes, which employers and employees must understand. During the pandemic, furloughs became more relevant.
Defining Furlough in California
California defines furlough as a specific employee’s temporary leave of absence related to an employer’s needs. An employer’s needs center around the economy.
Furlough vs. LayOff in California
If an employer misidentifies an employee’s furlough, places one on indefinite employment leave, and/or terminates employment, the employee may seek legal proceedings.
California’s Final Paycheck Requirements
If a California employer terminates employment, the employee can receive a final paycheck at the time of termination, amounting to earned wages, bonuses, and unused vacation hours.
If the employer delivers the final paycheck late, an employee may recover waiting time penalties, determined by the employee’s average daily wage for 30 days.
If a furlough becomes an employment termination without the proper process, the employee may receive waiting time penalties and their final paycheck.
Related: California Employment Discrimination FAQs
California WARN Act
California’s WARN Act protects employee rights for those who have lost their jobs due to furloughs and layoffs. An employer must write a notice within 30 days when it lays off 50 or more employees. An employer must complete aWARN Act obligation when calling a “mass layoff” as a “temporary furlough.”
An employer may become liable if they do not provide written notice. Employers can take three civil actions:
- Civil penalty amounting to $500,
- Payment for every employee’s lost wages, benefits, or medical expenses due to lost medical insurance,
- The employee’s attorney fees.
Either factor determines the duration of pay an employer may receive:
- A maximum of 60 days, or
- Half of the days the employee worked.
Whichever period is shorter is the chosen period of pay.
Related: California Exempt Employee Laws: Explained
FAQs About California’s Furlough Laws
Do I need to consult a lawyer when dealing with an improper furlough process?
A lawyer may be a beneficial asset when determining whether a furlough circumstance should be legally pursued. If the case is brought to court, lawyer representation must be sought.
Have California’s furlough laws changed because of COVID-19?
Yes, Governor Newsom made temporary changes to furlough laws due to COVID-19. You can find the temporary changes and specific processes to follow as a result of the pandemic here.
Contact Us
If you or a loved one would like to learn more about California Furlough Laws, get your free consultation with one of our Employment Attorneys in California today!