CV-19: Benefits, Furloughs, and Layoffs, Oh My!
Our friends at FlexBank (now FlexBank/Navia) have posted a very informative FAQ-type explication of the differences between furloughs and layoffs, and what those differences may mean towards your (and/or your employees') health insurance.
For instance:
"Furloughs are meant to be temporary periods of leave for a defined and finite period. With furloughs, your employees will remain as employed during their time away. Unlike a furlough, layoffs are permanent with no expectation for the employee to return."
Okay, good to know, but what does that have to do with my benefits?
Well:
"With a furlough, employees remain with the company and generally stay on any benefit programs they were already enrolled in. With a situation like the coronavirus pandemic, the furlough timeframe is largely unknown. This makes it very difficult for companies to predict how long they can afford to offer benefits to individuals that have been furloughed."
Okay, that makes sense.
There are also some interesting, under-the-radar issues like 'Pre-payment' and 'Catch-up on return' that folks might find helpful.
Click here for the whole thing.
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