How to Prepare For a Work Furlough

Furlough at Work

A work furlough is a mandatory intermittent work schedule, taken without pay, due to a lack of funds to operate a business. As companies try to manage the slowing economy and reduced business they are turning to a policy of work furlough, instead of layoffs or downsizing. All employees can be subject to a furlough which is a temporary non-duty, non-pay status. The furlough could be for a certain period of time or be intermittent to reduce employee financial hardship. There are ways to prepare yourself financially and mentally for a work furlough.

Difficulty:

Challenging

Instructions

1. Find Out Your Company's Furlough Policy

   With continual layoffs looming, over three million in the last six months, there has been a turn to a furlough policy by many companies to keep their well trained employees. Employees should find out the specifics of the furlough policy for their company.
   • Will the intermittent nature of the furlough have an adverse impact on employee benefits?
   • Will the employee health coverage stay in effect during the furlough period?
   • Will employees be responsible for their normal contributions?
   • Will vacation accrual and sick leave continue at their current levels?
   • Can an employee use their vacation time to help offset the financial strain the furlough will create?
   • Which employees will be furloughed?
   • Is the furlough duration intermittent or continuous?
   • Can an employee request a certain time frame to be furloughed?
   • What happens when the furlough period ends?

   Knowing what may happen allows you to plan for the change in income and benefits.

2. Start Saving a Portion of Your Wages

   This may sound elementary but begin to put a portion of your wages aside to help offset the financial strain the furlough may cause. There are habits that can be set aside such as dining out or getting a latte in the morning before work that can assist in adding extra money to be set aside.

3. Is 'Furlough' the Same as 'Laid Off' for Unemployment Benefits

   Depending on the State you live in and the amount of hours you have worked you may be able to file a claim to receive unemployment benefits during your furlough. Unemployment-Benefits.org (http://www.unemployment-benefits.org/default.aspx) is not a government agency. It aims to help unemployed individuals get their questions answered and provides direct links to every State's unemployment web page

4. Activities to Accomplish During Your Furlough

   • Start on that project you have wanted to get at.
   • Go on a trip.
   • Set up a Freelance home based business with the skill set you have.
   • Start a home based business using what you like to do or know how to do.
   • Take courses to add to your skills or become proficient at another type of work.

5. Start a Home Based Small Business During the Furlough

   To stay mentally 'sane' when it is your turn for a furlough you will need to stay busy and feel useful to keep a level head. This is the time when you need to take inventory of your skills, hobbies, and interests and be creative with how you can turn them into revenue generating activities.
   • If you have a hobby turning clay pots make as many as you can and sell them online or at craft sales.
   • With your riding mower you can start a lawn care business and offer your services to neighbors and beyond, who are working, and do not have the time to mow, prune, rake, and edge.
   • Beautician, bicycle repair, gift baskets, cake decorating, scrapbooking, welding, cleaning, errand service, photography, small motor repair, manicurist, etc, etc.

Tips & Warnings

• Being prepared for a furlough will help you to take advantage of your time off and understand what happens after the furlough at your company.

Resources

• U.S. Office of Personnel Management - Guidance and Information on Furloughs