How a Furlough Affects Your 401(k)
"You're fired" might be the most dreaded phrase in the workplace. But "You're furloughed" is quickly earning a bad reputation, too. In response to the coronavirus economic crisis, Macy's, Kohl's, Gap, Disney, and Marriott International have all announced large-scale employee furloughs. Hundreds of thousands of workers in retail, entertainment, and hospitality are affected.
A furlough is an unpaid leave of absence from work. It's similar to getting fired, in that you don't report to work, you don't get paid, and you may lose some of your benefits. The primary upside to a furlough is that it is intended to be temporary. Your employer does want you back at your post once the company's situation improves.
Image source: Getty Images.
Source Fool.com
