Companies across the U.S. have furloughed workers due to the halt to the economy caused by COVID-19.
The novel coronavirus has hit all sectors of the economy. Companies as big as Virgin Atlantic, Marriott and J.C. Penney as well as many smaller firms are giving their employees mandatory, temporary, unpaid leave.
On the other hand, those who have been laid off, may get some severance pay, but otherwise will no longer receive income from their employer. A sign at a gas station alerts customers that a business in Queens, which has one of the highest infection rates of coronavirus in the nation, is closed on April 03, 2020 in New York City. Millions of workers have been furloughed across the country due to the widespread shutdowns.If an employee is furloughed, they can still do work for their employer. If the employees are covered by the Fair Labor Standards Act and are non-exempt their employer must pay them for that work, Sedey said.
"It is certainly a good thing for the economy, because one of the big issues in any recession is how quickly employers release employees and how quickly they bring them back," Hall toldDems Block $250 Billion in Small Business Aid, Accuse McConnell of 'Stunt'Yes, they do have the right to find other work and experts suggest that it might be a smart move. As Sedey said furloughed workers may be left without a job when the crisis is over.
However, Hall said that a furloughed worker had to carefully weigh up whether to cut ties with an old job before accepting a new one.
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