What are the rules for layoffs and furloughs?

Layoffs and furloughs are a type of employment action that can be taken by an employer in the state of Texas. A layoff is an action in which an employee’s position or job is eliminated, while a furlough is a temporary leave of absence that can be unpaid or with reduced pay. When it comes to layoffs and furloughs, the Texas Labor Code does not require an employer to follow any specific procedure. This means that employers have considerable discretion when deciding whether to lay off or furlough employees. However, employers must comply with the applicable federal and/or state anti-discrimination laws. Discrimination on the basis of race, color, religion, sex, national origin, age, or disability is prohibited. The Texas Workforce Commission (TWC) provides guidance to employers, suggesting that employers consider the following criteria before implementing layoffs or furloughs: length of service, attendance records, discipline records, performance reviews, seniority, skills, and other non-discriminatory factors. Employers must also be aware of their obligation to provide employees with their accrued wages, holiday leave, vacation leave, and other benefits due at termination. Generally, employers must pay employees the wages they have earned within six days of termination. When considering layoffs and furloughs, employers in Texas must make sure to comply with all applicable federal and state laws in order to avoid potential issues.

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What are the rules for layoffs and furloughs?

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