Can a company force you to use PTO for furlough?

Yes, generally, subject to the terms of the employer’s policy and any contractual limitation. An employer may require its employees to take paid leave during any period of shutdown or furlough, or it may allow its employees to choose whether or not to use their available paid time off.

What happens to PTO benefits during a furlough?

As for PTO benefits, the employer has greater flexibility and ordinarily can modify the policy statements unilaterally to extend coverage if desired. For employee relations reasons, employers should address this in advance. Of course, when reducing hours, employers may wish to reduce benefits, too.

Can an employer force employees to use PTO time?

Holidays and Inclement Weather. Federal, and in most cases state, law does not require that employers provide time off for holidays. An employer can, however, require that employees use PTO to cover days taken for holidays.

What to do if employee objects to mandatory furlough?

If your PTO policy or CBA is silent on the issue and an employee objects, you should seek legal advice regarding the specific situation and your policy. Some employers have asked whether it is possible to prevent an employee from using accrued and unused leave during a mandatory furlough or closure. This is a more difficult question.

Do you have to pay for a furlough for exempt employees?

However, if an employee does not have enough PTO available to fill the gap, the employer must pay for the time. An employer could have a full workweek furlough of exempt employees when the employees are unpaid.

Do you have to use PTO during a furlough?

Can employers require employees to use vacation time or PTO during furloughs? Yes. Ordinarily, employers can require employees to use PTO during business shutdowns. However, if employers plan to do so, they should have a written policy in place that provides for such compulsory use.