When an employee fails to return from FMLA leave, for at least 30 calendar days, the employer may demand payment of its share of the health premiums paid during the leave. However, that may not be easy, and it may not be sensible.
Most state wage and hour laws do not permit an employer to collect such monies by withholding final paychecks and/or vacation pay. If the employee doesn’t voluntarily pay, an employer must proceed to court and sue the employee to recover its share of premium payments.
Unfortunately, a favorable court ruling will likely cost the employer more than it will recoup.
Furthermore, an employer is not entitled to recover its share of premium payments if the employee fails to return to work because of:
- The continuation, recurrence, or onset of a serious health condition of the employee or the employee’s family member that would entitle the employee to leave under the FMLA.
- Other circumstances beyond the employee’s control including, but not limited to, caring for a relative, such as a newborn infant or an individual (other than a covered relation) who has a serious health condition, or relocating because a spouse is transferred to a location more than 75 miles from the employee’s work site. Electing to remain home to care for children is not a circumstance beyond the employee’s control.
When an employee fails to return to work because of the continuation, recurrence, or onset of a serious health condition, thereby precluding the employer from recovering its share of health benefit premium payments made on the employee’s behalf during a period of unpaid FMLA leave, the employer may require medical certification of the employee’s or the family member’s serious health condition. Such certification is not required unless requested by the employer.
Comp and benefits for employees out on FMLA? Confusing at best—attend BLR’s June 28 webinar, Pay and Benefits Rules for Employees on Leave: Incentive-Based Comp, PTO, Insurance Premiums, and More
. Click here to find out more.
The employee is required to provide medical certification in a timely manner or within 30 days from the date of the employer’s request. If the employer requests medical certification and the employee does not provide it in a timely manner, or the reason for not returning to work does not meet the test of other circumstances beyond the employee’s control, the employer may recover 100 percent of the health benefit premiums it paid during the period of unpaid FMLA leave.
If the employer chooses to maintain other benefits (e.g., life insurance, disability insurance) by paying the employee’s co-payment during FMLA leave, the employer is entitled to recover only the employee’s share of the premiums for these benefits.
Furthermore, if paid leave is substituted for unpaid FMLA leave, the employer may not recover its share of health insurance or other nonhealth benefit premiums.
Handling comp for employees on leave—it’s never going to be easy, but fortunately there’s timely help in the form of BLR’s new webinar—Pay and Benefits Rules for Employees on Leave: Incentive-Based Comp, PTO, Insurance Premiums, and More. In just 90 minutes, you’ll learn everything you need to know.
Register today for this interactive webinar, and learn how to keep the feds and the attorneys at bay and your organization in compliance.
When an employee takes FMLA, unique compensation and benefits management issues come into play. You have to do more than administer the healthcare benefits plan and apply PTO.
When an employee comes back from leave, do you have to reinstate him to the same position? Are you ever allowed to dock an employee’s pay for family or medical leave-related absences? Are you still obligated to pay an employee for holidays when she is out on leave? Is paid sick leave mandatory?
HR and benefits professionals must know how compensation and benefits should be applied to employees who are out on family or medical leave. Don’t let confusion lead to conflict or costly fines. Get up to date NOW, and keep your processes and procedures legally sound.
In just 90 minutes, you’ll learn your various obligations to employees who are out on family or medical leave. Register now risk-free for this informative event.
Know the pay and benefits rules for employees on leave? Be sure—attend BLR’s new June 28 webinar Pay and Benefits Rules for Employees on Leave: Incentive-Based Comp, PTO, Insurance Premiums, and More. Practical, field-tested approaches. Guaranteed. Get info here.
Approved for Recertification Credit
This program has been approved for 1.5 recertification credit hours toward PHR and SPHR recertification through the Human Resource Certification Institute (HRCI).
By participating in this interactive webinar, you’ll learn:
- Holiday pay obligations when an employee is out on leave
- Examples of when docking pay is permissible and when it is not
- When an employee continues to accrue seniority and other benefits while on unpaid leave
- How to correctly calculate overtime and compensate exempt employees on intermittent or reduced schedule leave
- How to manage incentive pay for employees on leave
- When PTO should be counted toward the 12 weeks of leave entitlement
- State- and city-based obligations for paid sick leave
- How paid sick leave mandates interact with your FMLA obligations
- When you may require a doctor’s note when an employee calls in sick
- Medical documentation you may request
- When you can still require an employee to use PTO if a workers’ comp-related absence is designated as family or medical leave
- What you must do when designating a workers’ comp-related absence as family or medical leave
- Employee handbook policy drafting tips for PTO
- Your obligations to maintain medical, dental, life, and disability insurance for an employee who is out on leave
- If and when you can require an employee to pay a portion of healthcare premiums while on leave and other factors affecting premiums
- If an employee can take family or medical leave and receive short-term disability benefits at the same time
- When taking leave is a COBRA-qualifying event
- Your duty to restore healthcare benefits once the employee returns from leave if he didn’t elect coverage while out
- Your obligations to restore an employee to the same or equivalent position and how an equivalent position is defined
- And much, much more
Register now for this event risk-free.
Pay and Benefits Rules for Employees on Leave: Incentive-Based Comp, PTO, Insurance Premiums, and More
Thursday, June 28, 2012
10:30 a.m. to 12:00 p.m. (PST)
11:30 a.m. to 1:00 p.m. (MST)
12:30 to 2:00 p.m. (CST)
1:30 to 3:00 p.m. (EST)
Join us on June 28—you’ll get the in-depth Pay and Benefits Rules for Employees on Leave: Incentive-Based Comp, PTO, Insurance Premiums, and More webinar AND you’ll get all of your particular questions answered by our experts.
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It seems like a lot of employers just take the premiums as a sunk cost in these circumstances.