Save Money
Furlough vs. Layoff: What Should You Know About Your Benefits?
It’s been a rough couple of months for millions of Americans and while some companies have been able to shift to work from home policies, others have had to furlough or lay off employees during this pandemic. In order to fully understand your benefits, let’s take a minute to learn the differences between a furlough and a layoff.
Both involve not working, but a furlough is meant to be temporary while being laid off is permanent. In some insistences of a layoff, your employer may offer you a severance package—though there is no requirement for them to do so. Severance packages can help financially ease you into a layoff.
They can include a sump sum cash payout or COBRA payments that help you remain on your employer’s health insurance plan until you find another job or obtain your own health insurance. Being laid off means you are no longer an employee and must look for other employment options or file for unemployment.
What Happens When You’re Furloughed?
When you’re furloughed your employer is picking an alternative to a layoff. Furloughs can come in many different forms. You are still employed, but being paid less or not at all. Furloughs and layoffs can happen in any industry to any position. You still have your health benefits in place, but you don’t receive a paycheck and you can’t contribute to benefits like a retirement plan or an HSA savings account.
What Are Your Rights When You’re Laid Off or Furloughed?
Unemployment benefits are available to people who are both furloughed or laid off. The CARES Act has ensured increased unemployment benefits to many Americans. Furloughed employees are allowed to work for other employers.
If you do find yourself furloughed or laid off, it’s important to remember it doesn’t have to do with your work performance. People are laid off or furloughed because the company is having problems Every situation is unique so we’d encourage you to reach out to our advisors to talk about your personal situation if needed.
Download Your Infographic Below:
Read the full article here
Apple Prepares a New AI-Powered Siri to Compete With ChatGPT
Resy: Restaurant Vibes Matter, Plus 2025’s Trending Cocktail
Gift Yourself a Sam’s Club Membership for $20
Customers Want More Than Just a Product — Here’s How to Keep Up
The best ETFs for retirees
The One Microsoft Design Tool Business Owners Shouldn’t Miss
The DOJ Reportedly Wants Google to Sell Its Chrome Browser
Holiday Savings: Get a MacBook Air for $250
This Founder Turned a Hangover Cure into Millions
Your Firsthand Experiences Shape the Way You Run Your Business — Here’s How Mine Shaped Me
Debt ceiling debate and its effect on the U.S. dollar
Debt ceiling default: Still no deal between parties
Stovall: If the U.S. defaults on its debt, all S&P 500 sectors will likely fall
What China's weaker-than-expected economy could mean for U.S. markets
A ‘Big Short’ investor sees financial disaster brewing in housing markets — again
-
Passive Income6 days agoThe One Microsoft Design Tool Business Owners Shouldn’t Miss
-
Side Hustles4 days agoThe DOJ Reportedly Wants Google to Sell Its Chrome Browser
-
Side Hustles7 days agoHoliday Savings: Get a MacBook Air for $250
-
Investing5 days agoThis Founder Turned a Hangover Cure into Millions
-
Investing6 days agoYour Firsthand Experiences Shape the Way You Run Your Business — Here’s How Mine Shaped Me
-
Side Hustles4 days agoHow to Create a Unique Value Proposition (With Tips & Examples)
-
Make Money7 days ago7 Common Retirement Planning Mistakes and How to Avoid Them
-
Investing7 days agoWant to Be a Better Coach? Focus on This One Overlooked Skill