DECA Human Resources Management Practice Exam

What is a furlough?

1. A voluntary leave of absence with pay

2. A mandatory time off work with no pay

3. A temporary reduction in work hours

4. A job position eliminated due to budget cuts

The correct answer is: A mandatory time off work with no pay

A furlough refers to a mandatory time off work with no pay. This term is commonly used in situations where an employer needs to reduce labor costs temporarily, often due to economic downturns or budget constraints. Unlike a layoff, where an employee's position is permanently eliminated, a furlough is intended to be a temporary measure. Employees are expected to return to their jobs once the situation improves, making this an important distinction. In contrast, voluntary leave of absence with pay is not accurate as a definition of a furlough because a furlough does not typically include compensation during the time off. A temporary reduction in work hours might imply that an employee is still working part-time and receiving some pay, which differs from the nature of a furlough. Finally, the elimination of a job position due to budget cuts describes a layoff rather than a furlough, as it suggests a permanent end to employment rather than a temporary suspension. Thus, defining a furlough as a mandatory time off work with no pay captures its essence.