There are ways to reduce overhead without breaking labor laws. Instead of asking salaried employees to work without pay, companies might consider reducing wages temporarily. Companies can even have temporary layoffs. She says a weeklong layoff is legal everywhere except California, which mandates that layoffs be for at least a month. For this strategy to work, salaried employees must not work at all during the layoff period.
Companies can temporarily lay off a handful of people.
Often companies lay off their top earners temporarily for a significant boost. If they're all in their 40s and 50s, make sure no discrimination is involved. Companies in truly dire straits might also want to consider eliminating part or all of their benefits package until new funding comes through, say Hertan and Tabacopoulos. Many companies lay off salaried employees and then rehire them as independent contractors to save on benefits. While these moves are hard on workers and their families, they can save a lot of money in the short term.