18 Mar 2009 12:00 AM

Mandatory Furloughs Present Long List of Legal Concerns for Employers


In an attempt to avoid layoffs, many employers are instituting mandatory furloughs as a means of cutting costs during the current recession. Mandatory furloughs, which require employees to take time off without pay, are occurring more frequently in recent months across several industries and employers. Alison Hightower, a shareholder at San Francisco's Littler Mendelson, who authored a recent report on the topic for her firm, said furloughs are becoming increasingly popular despite several complicated legal issues.