Duston advises employers to consider issues under the Fair Labor Standards Act before implementing furloughs
"Employers Furlough Without Weighing Legal Risks", SHRM
Robert L. Duston, Co-Chair of the Labor, Employment and Employee Benefits Practice Group, was a source for this article about how employers are cutting costs in many different ways without considering the legal consequences.
The legal risks can run the gamut from wage and hour issues, possible unlawful discrimination, Worker Adjustment and Retraining Notification (WARN) Act requirements and possible labor relations challenges to benefits issues.
For example, he said, furloughs - when employees take time off for no pay - are "a ripe area for class-action" lawsuits under the Fair Labor Standards Act because many employers are not thinking about wage and hour issues before instituting furloughs.