Career Question of the Day
CQ#55: Is it legal to mandate furloughs for full-time employees?
Quick Answer:
Ordinarily, an employer cannot reduce the salary of an exempt worker for an occasional lack of work without the employer risking having those workers be “converted” to hourly. This is called the “salary test.” (Exempt workers are those that are properly not entitled to overtime.) If the furloughs are scheduled in advance on fixed dates, however, they will likely be considered legal.
Longer Answer: See Full Article
Mandated Furloughs by Amy Semmel, Attorney at Law
This article is from WorkingWorld.com