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May 14, 2020
What Does It Mean to Be Furloughed?
By Wendy H. Vogel, MSN, FNP, AOCNP®
Physician practices and hospital/health-care systems are experiencing declines in revenue and patient volumes. A recent survey by the Medical Group Management Association
(2020) of medical practices stated that 22% of practices surveyed laid off employees and 48% furloughed employees. These practices project that by the beginning of May 2020, 36% will lay off employees and 60% will furlough employees.
Furloughs are occurring among all medical professions, including advanced practitioners in oncology.
Definition of Furlough
The definition of a furlough is a planned, mandatory leave of absence from work without pay (U.S. Office of Personnel Management, 2020). It usually occurs due to negative economic conditions of the employer. Furloughs are generally involuntary and can last as long as the employer deems necessary. Furloughs may be an alternative to laying off employees. The employee
has the expectation of returning to work when called. However, neither the employer nor employee has any guarantee of this. Also, there is usually an expectation of when the employee would return to work; either a date or some
specific condition must occur. Some furloughs could be a reduction in work hours.
Benefits During Furlough
Benefits such as health-care insurance, life insurance, and others are usually retained, although this can vary by employer. Some employers will allow employees to accrue sick days and paid time off. The employee also has the usual employment rights during this time. This is notable in the government sector, where government employees cannot be fired or supplanted without due process. Even in the non-governmental sector, employees have the right to return to their original position if that position has not been eliminated.
Furloughed employees may apply for unemployment benefits. If the employee loses health-care insurance during the furlough, they may be able to apply for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage or an Affordable Care Act policy. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided expanded unemployment benefits for COVID-related job loss or furlough (U.S. Department of the Treasury, 2020). In addition to usual unemployment pay, this law provides up to an additional 13 weeks of benefits and $600 per week supplementary pay. People who are self-employed, without adequate work history, and those looking for part-time jobs qualify for unemployment benefits.
Employer Expectations
Furloughed employees are not allowed to work for the furloughing employer at all, even including answering emails. If the employee had an hourly position (nonexempt), the employer must pay for the time worked. If the salaried (exempt) employee works while furloughed, even for ten minutes, the employer must pay them their salary for the whole week. Because of this, employers will often deny access to emails, intranet, and work devices.
During a furlough, employees can look for another job or consider a temporary position. However, the employer may have policies against temporary employment or second jobs. Unfortunately, during the COVID-19
crisis, some health-care institutions are discouraging, if not forbidding, employees from taking another position, especially if the employee desires to offer assistance and work in an area greatly affected
by the coronavirus. At the minimum, the employee would be expected to self-isolate after returning from the COVID-19–active area. This could violate the expectation of the employer that the employee
be able to return to work with little to no notice. Employees should check with their employer before seeking other employment.
References
Medical Group Management Association. (2020). COVID-19 financial impact on medical practices. Retrieved from https://mgma.com/getattachment/9b8be0c2-0744-41bf-864f-04007d6adbd2/2004-G09621D-COVID-Financial-Impact-One-Pager-8-5x11-MW-2.pdf.aspx?lang=en-US&ext=.pdf
U.S. Department of the Treasury. (2020). The CARES Act works for all Americans. Retrieved from
https://home.treasury.gov/policy-issues/cares
U.S. Office of Personnel Management. (2020). Pay & leave furlough guidance. Retrieved from https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/
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