Daniel Klein Quoted in Human Resource Executive Online
“Forcing Furloughs”

Daniel Klein was quoted in the May 26, 2009 Human Resource Executive Online article, “Forcing Furloughs.” The article reported on companies that are using work furloughs or other alternative means to cut costs instead of resorting to mass layoffs. As a result, these companies must be careful that they are not violating the Fair Labor Standards Act or other applicable state laws when implementing these programs. Dan noted, "It's getting popular to find cost-cutting measures and not have to lay people off, to minimize the number of folks being terminated. But employers have to careful, especially when using furloughs.”

The article also addressed how the laws are different for exempt versus non-exempt employees and the ability to use Paid Time Off (PTO) or vacation days during a furlough varies by state. The article noted that there has been an increase in both mandatory and voluntary furloughs and that they may still have an impact on employee morale. Dan commented, “Using furloughs could be a smart way to retain valuable workers, while also showing loyalty to the workforce by not resorting to layoffs.” He continued, “Of course, for employees suffering these fates, it's all very difficult. In many cases, employers are trying to avoid mass job cuts at all costs. They are trying to be loyal to their employees by keeping them employed."