Furloughs And Reduced Hours: Cost-Cutting Strategies Other Than Layoffs December 2008

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Furloughs And Reduced Hours: Cost-Cutting Strategies Other Than Layoffs December 2008

In these tough economic times, many employers have been

compelled to let some employees go. Other employers need to cut

costs but are looking for lawful alternatives to layoffs.

Employers do have some other options, as long as they structure

those measures to avoid legal pitfalls. While employers may

consider reducing employee salaries prospectively as the easiest

way to save labor costs, such reductions often are rejected as too

demoralizing for the workforce. Mandatory furloughs and reduced

hours thus are the two most prevalent options considered by

employers seeking to reduce lab...

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