Options to Reduce Costs for Employers Navigating Economic Uncertainty

Whenever employers face economic uncertainty, CalChamber’s Labor Law Helpline sees more questions related to reducing business expenses. And the first several months of 2025 have followed this pattern, as employers have been frequently calling with questions on layoffs, furloughs and reductions in hours. Below are some common questions, with options for employers that can help ensure their operations’ continued viability. Employers should consult with legal counsel when planning furloughs, layoffs or to reduce workers’ hours.

What’s the difference between a furlough and a temporary layoff?

From a legal perspective, there’s no difference. Employers who need to temporarily remove