FAQs: Furloughs and temporary FTE reduction
Table of Contents
Last updated: February 10, 2025
Management of furloughs and temporary reduction in FTE
When can I discuss furloughs with employees?
You may discuss furloughs with employees after your furlough plan has been approved by UWHR. Contact your UW Human Resources Consultant.
May furloughed staff perform any work during the furlough period?
Not for their employing unit. Furloughed employees are not authorized to perform any work for the employing unit during the furlough period (including checking and responding to their work email and remotely accessing their workstation except for the purpose of receiving communications about the end or extension of the furlough) and may not volunteer to perform unpaid work for the employing unit. Furloughed employees may check and respond to email relating to their return-to-work date and their UW benefits.
May staff identified for furlough use paid time off instead of unpaid time off?
During furlough, employees cannot substitute paid time off for scheduled furlough time except to maintain employer-paid insurance in accordance with policy. Since an employee receives their full pay when using paid time off, having employees use paid time off during this period defeats the essential cost reduction goal of the mandatory furlough.
Will an employee whose furlough period includes a paid holiday be paid for the holiday?
Yes. Employees who are on furlough will be paid for the holiday even if they are in unpaid status the day before the holiday. Holiday pay received by an employee who is receiving unemployment benefits for that week will reduce the amount of the employment benefit received by the employee for that week. (See “How are unemployment benefits calculated?” below.) Holiday pay is not automatic – Holiday Taken Time Off (hours) must still be entered into Workday or Kronos to be paid for the holiday, as usual, to ensure holiday credit is not banked.
Furloughs don’t affect accruals, months of service toward a higher vacation accrual rate, progression start date, seniority, and time off and company service date. What transactions do I need to make to make sure this happens?
For furloughs, in Workday, a leave of absence for furlough (lack of funds or lack of work) “opens” unpaid time offs that do not impact progression or accruals for staff. As long as “Unpaid Time Off – Temporary Layoff (hours)” is transacted, accruals and progression will not be impacted. Using these time offs will ensure that seniority is not impacted if calculations are made at a later date. The dates will remain untouched.
For a temporary reduction in FTE, UWHR will perform a monthly audit to correct months of service, vacation and sick time off accruals, and progression adjustments at the conclusion of a temporary FTE reduction. Departments do not need to take any action.
What is the effect of furlough on retirement plan contributions and employer-paid insurance?
UW employer-paid insurance will continue during any month in which the employee is in pay status for at least 8 hours. Employees who would be off the payroll for a full calendar month or more because of furlough will be allowed to use 8 hours of eligible paid time off in the month to ensure employer-paid health care insurance continuation during furlough. Employees remain responsible for their contribution.
Retirement contributions will continue based on pay received by the employee, however a reduction in paid hours may impact the employee’s service credit accumulation. To learn more about how a retirement plan accumulates service credit, review information about your retirement plan.
When does the employee return to work from the furlough?
Employees on furlough are expected to return to work on the date specified in the furlough notice. Furlough notices will state that the employee should be prepared to receive a return-to-work notice before the anticipated end date, should circumstances allow.
If the employing unit is able or has an operational need to end a furlough earlier than anticipated, the employee will be notified of the return-to-work date as soon as it is known. Notice of early return to work should be made verbally and confirmed by email if possible. If verbal notification is not possible, notice may be provided by email.
What is the process for pulling back a furlough?
You may notify the employee in writing that the furlough has ended. Work with your HRC to return the employee from a furlough.
How do I process a greater FTE reduction or furlough someone on a temporary layoff FTE reduction?
Contact your HRC and complete the Temporary Layoff FTE Reduction Furlough Planning Template . Once approved, your unit will notify the employee in writing of the change to their temporary layoff.
How do I place an employee in a professional staff temporary position (PSTP) on a furlough?
Hourly PSTPs are not covered by the temporary layoff policy and may be separated or not scheduled to work.
Salaried PSTPs are covered by the temporary layoff policy and may be put on furlough, or their appointment may be ended.
Are there additional considerations when furloughing employees already on leave of absence?
Employees already on a leave of absence may be furloughed in accordance with the temporary layoff policy. Written notice to the employees should explain adjustments made to the use of paid time off during their leave.
The temporary layoff policy uses the term inverse seniority. What does that mean for temporary layoffs?
Inverse seniority means that temporary layoffs are based on the most recent date of hire (Company service date in Workday), starting with the newest employees first. This applies to probationary period employees first, followed by permanent employees from lowest to highest seniority. Departments must follow this approach for contract-covered and classified non-union staff.
Can I furlough an employee who is in their probationary period?
Yes, departments may choose to furlough an employee in their probationary period or can choose to initiate a probationary period rejection. Either option is available as approved by UWHR.
Unemployment benefits information
When a furloughed employee applies for unemployment compensation with the Employment Security Department (ESD), how do they indicate they have been furloughed?
ESD’s application for unemployment compensation asks the employee to choose a reason why they are separated from work. Furlough is not a listed option. Instead, for the question “Why did you separate from this employer?” select “Laid off” and for the follow-up question “Choose more information about this separation” select “Other reason not listed.”
What is standby? Does a furloughed employee need to request standby?
Standby is a status used by ESD to describe individuals who are temporarily unemployed but expect to return to work within two to eight weeks. When on standby, employers must approve or deny standby. Individuals on standby are not required to meet work search requirements.
How are unemployment benefits calculated?
If an employee who has been furloughed for at least a week applies and is qualified for benefits they should receive a weekly benefit anywhere from $215-$1079 (based on their regular income). Washington State ESD’s formula for calculating the regular weekly benefit amount is:
Weekly benefit (subject to the minimum and maximum noted above) = .0385 x the average of gross wages for the two highest quarters in an individual’s base year (the first four of the last five completed calendar quarters)
Examples of weekly benefit amount calculation
Average of two highest quarters |
Multiplied by .0385 weekly benefit |
Amount |
---|---|---|
$2,800 | $107.80 | $215 |
$4,000 | $173.25 | $342 |
$10,508 | $404.56 | $404 |
$19,480 | $749.98 | $749 |
The weekly benefit amount may be reduced if an employee has received pay during the claim week. For additional information, including an estimated benefit calculator, see the ESD Estimate Your Benefit web page.
Is there a waiting period for unemployment eligibility?
Washington State law requires an unemployed individual to be unemployed for a waiting period of one week before being eligible to receive unemployment benefits. See How to File Your Weekly Claims for more details.
What do I need to consider if a FLSA exempt employee is furloughed in the middle of the workweek?
FLSA exempt employees furloughed midweek must be paid on an hourly basis and treated as overtime-eligible for the entire Monday to Sunday FLSA workweek. If your unit furloughs an overtime exempt employee during a workweek that also includes partial days of work:
- Do not allow employees to work more than 40 hours in the FLSA workweek prior to their furlough
- Avoid having employees work an excessive number of hours prior to the furlough. Instead, balance hours worked in the week in alignment with the employee’s FTE (e.g., a 1.0 FTE employee should work no more than 8 hours per day each business day until the furlough).
Example to avoid: A 1.0 FTE employee works 40 hours on Monday, Tuesday and Wednesday in advance of a furlough that begins on a Thursday. If Thursday and Friday are entered as unpaid furlough days, the employee would be underpaid for the workweek, as they have already worked 40 hours.
Best practice example: A 1.0 FTE employee scheduled to be furloughed on Thursday should work 8 hours each day on Monday, Tuesday and Wednesday in advance of their furlough. When 8 hours of unpaid furlough time off is entered for Thursday and Friday, they will be accurately paid on an hourly basis for the workweek.
Furlough plans that don’t align with best practice should be evaluated so that we can ensure the employee is appropriately paid. Contact hrhelp@uw.edu if you have any questions.