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  1. #1
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    Oct 2020
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    Default Exempt Employee Furlough Guidelines California

    My question involves labor and employment law for the state of: California

    When furloughing exempt status in employees in california are there guidelines that must be followed? For example what triggers pay out of PTO? If you are furloughed for more than a week and it lowers your salary below the monthly exempt salary can they do that? Thanks for the help!

  2. #2
    Join Date
    Oct 2014
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    8,209

    Default Re: Exempt Employee Furlough Guidelines California

    Quote Quoting soccercoach
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    My question involves labor and employment law for the state of: California

    When furloughing exempt status in employees in california are there guidelines that must be followed? For example what triggers pay out of PTO? If you are furloughed for more than a week and it lowers your salary below the monthly exempt salary can they do that? Thanks for the help!
    Private employer or government agency?

  3. #3
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    Oct 2020
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    Default Re: Exempt Employee Furlough Guidelines California

    Private employer a university. Position is classified as exempt..they gave us 10 days notice and furloughed us for 2 weeks..my issue was the back to back weeks which lowers my pay below the minimum exempt salary for October. We also have two weeks schedule in 2021..everything I reads seems to say they can only furlough down to the 1040 in ca...other schools the way the furloughed triggered PTO but not the case at my school...so just want to understand and our HR is just so so on knowing stuff...Thanks!

  4. #4
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    Sep 2010
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    Default Re: Exempt Employee Furlough Guidelines California

    There's no rule that says they can't reduce your salary below the exempt limit, it just means you cease to be exempt at that point (hence, due overtime, etc...). If they're furloughing you, that's not something they're going to be concerned about.

    A decision from the California Labor Commission is that furloughs that last more than a pay period are indeed terminations and the "final paycheck" rules apply (including PTO payout).

  5. #5
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    Oct 2020
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    Default Re: Exempt Employee Furlough Guidelines California

    Thank you! Final question they furloughed us one pay period this year and one pay period next..we are paid bi-weekly..I am guessing since they did it in two different years it does not trigger PTO...So if it is two weeks furlough then after two weeks I return to being exempt? Thanks

  6. #6
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    Sep 2010
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    Default Re: Exempt Employee Furlough Guidelines California

    What "year" they are in is largely immaterial. If they were back to back, then it would seem they should be treated as a termination under the commissioner's decision.

    As for the transfer to exempt, it would largely depend on the numbers involved. The concession that this is an unpaid termination may work against you here.

  7. #7
    Join Date
    Oct 2020
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    Default Re: Exempt Employee Furlough Guidelines California

    Ok thanks..yes 2 weeks upcoming in a row and 2 weeks in May in a row is what they have scheduled. So there is no set length of a furlough that triggers PTO? The exempt status is not at issue here because they have given specific start and end dates? Thanks

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