I’m sure you’re not surprised that I’m getting a lot of questions these days about “what is a furlough”, “will I be furloughed”, “how will a furlough affect me?”.

First, what is a furlough? These days layoffs mean permanent loss of your job, while a furlough means you are still technically employed but not working and not being paid. In some fields it’s done regularly on a seasonal basis (and can therefore be regularly planned for), and in other cases it’s because of large economic events such as COVID-19.

But what exactly are the implications of a furlough as your particular company and situation can vary highly. The rest of the possibilities are all decided by your employer, and you’ll need to make sure you receive clarification on many important factors if you’re facing a potential or implemented furlough.

Usually seniority, original hire date, and other benefits tied to years of service are maintained for when you return to work, such as PTO accrual, pension, 403b/401k match, and parking privileges. But that’s not a blanket statement, make sure you know what standards your employer is using.

What about my medical insurance? Your employer may or may not keep you on their medical insurance plan while you are furloughed, again it’s up to them. If you’re furloughed, you’re eligible to keep your plan by paying COBRA rates, you will need to get the appropriate paperwork from your company’s HR department to apply for COBRA coverage.

Will I be furloughed? In order to avoid discrimination (which is not allowed), whole swaths of employees are usually furloughed. So being a top performer, old, young, etc, won’t save you from a furlough.

Can I hunt for another job while I’m furloughed? In most cases, yes. And many people will, because unemployment compensation, especially if you are a top performer in a higher income field, is a drop in your usual income bucket. Also, if your company was unstable enough to need to furlough employees, and other companies are still stable enough to be actively hiring, it’s often long term beneficial to change jobs in addition to the short term benefits. Or you may seek other part-time/short term work while furloughed, but beware potential implications on unemployment benefits, and beware you may be recalled to work at any time.

Can I apply for unemployment benefits while furloughed? Well, maybe. In Minnesota, you are only eligible to collect Unemployment Insurance if your hours fall below 32 per week. So you’ve got to be prepared to buffer yourself against that 20% pay cut without unemployment insurance.

Why would a furlough be avoided? Generally upper management is the highest paid, furloughing the rank-and-file employees is generally a small savings in comparison to the upper management who wouldn’t be furloughed. And you have all of the additional up- and down-shifting chaos if furloughs happen, and that’s expensive too. Finally, morale is usually impacted negatively by a furlough.

Also, furloughs may not be the only challenge you’re facing as an employee. Salary cuts and benefits cuts may go along with them.

What can I do? If you’re facing a furlough, as usual, knowledge and a well stocked emergency fund are power. But you can’t make your employer change their mind, and you can’t control whether or not (or when) you’re laid off. Take a deep breath (or two or three), and focus on your circle of influence.