HR Management & Compliance

FMLA Training Scenario: Reduction in Force During Leave

Here we present a leave-related workplace scenario—inspired by an actual court case—that’s intended to help HR professionals better understand an employer’s responsibilities under the Family and Medical Leave Act (FMLA).  In this scenario, an employer mistakenly violates its own internal policy of not laying off employees while they are on leave and eliminates the position of an employee on FMLA as part of a reduction in force (RIF).  What happens next?

reduction in forceFacts

Jeremy had worked for his company for many years and when his wife gave birth to their first child, he was eligible for and requested 12 weeks of FMLA leave. Due to economic losses over a 2-year period, the company implemented a multi-phase plan to downsize the workforce. Jeremy was included on a list of employees who were going to be terminated as part of the reduction in force (RIF).

There were two other employees on the list who were out of work on leave and their names were removed from the list—the company had an internal policy of not laying off employees while they were on leave. But Jeremy was not identified at the time as being on leave.

The RIF occurred while Jeremy was on leave and he was informed that his position had been eliminated and his employment terminated. After Jeremy contacted his supervisor, the company determined that Jeremy should not have been laid off during his leave and the company offered to reinstate him.

Prior to the offer of reinstatement, Jeremy filed a complaint alleging that the company had interfered with his right to FMLA leave by terminating his employment while he was out of work on leave. Jeremy did not challenge the layoff itself, only that he was laid off while on FMLA leave.

The Law

In O’Connor v. PCA Family Health Plan, Inc., 200 F.3d 1349 (11th Cir. 2000) (the case that inspired this hypothetical), the Court of Appeals for the Eleventh Circuit granted summary judgment for the employer on claims of interference with FMLA rights.

The FMLA provides eligible employees with 12 weeks of leave for a qualified reason during which time an employee’s employment status is protected. An employee has no greater right to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during the FMLA leave period. If an employee is laid off during FMLA leave, the employer’s responsibility to maintain group health benefits and restore the employee ceases at the time the employee is laid off.

Questions

1. Did the company have an obligation to delay Jeremy’s layoff until after he returned from FMLA leave?

In this case, Jeremy doesn’t seem to dispute that layoffs were necessary or that if he had not been on leave, he would have been laid off. His contention is that he had an absolute right to be reinstated at the end of his FMLA leave and that his rights were violated when he was selected for the RIF. The FMLA, however, does not provide any greater rights than Jeremy would have had if he had not been on leave. 29 CFR 825.216(a).

2. What about the internal policy by which two other employees were removed from the list? Did the failure to remove Jeremy’s name from the list violate the FMLA?

Jeremy was also upset that two other employees who were on leave were removed from the list, but he was not. The company’s voluntary adoption of a policy designed to avoid legal issues does not expand the scope of the FMLA or an employee’s rights under the FMLA. In fact, according to the court, the failure to remove his name from the list suggests that his FMLA leave did not play a role in his selection for termination.

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