| FMLA - Family & Medical Leave Act |
| The Family Medical Leave Act (FMLA) is enforced by the Department of Labor (DOL). It provides eligible employees unpaid leave (and restores their job after the leave) during any 12-month period for any of the following reasons: for the birth and care of the newborn child, for placement with the employee of a child for adoption or foster care, to care for an immediate family member, or to take medical leave. |
| Who is covered under FMLA? |
| Reasons for leave under FMLA? |
| Eligible employee |
| As an employer, am I required to offer health insurance to employees out on FMLA? |
| Intermittent Leave |
| How it Works With A FSA Plan |
| The FMLA applies to all: 1) public agencies, including state, local and federal employers, local education agencies (schools) 2) private-sector employers who employee 50 or more employees in 20 or more workweeks in the current or preceding calendar year 3) Washington DC based employers with > 25 employees. |
| All covered employers must grant an eligible
employee up to a total of 12 work weeks of unpaid leave during any 12-month period for one or more of the following
reasons: 1) for the birth and care of a newborn child of the employee 2) for placement with the employee of a son or daughter for adoption or foster care and to care for the newly placed child 3) to care for an immediate family member (spouse, child, or parent, NOT an "in-law") with a serious health condition 4) to take medical leave when the employee is unable to work because of a serious health condition |
| To be eligible for FMLA benefits, an employee must: 1) work for a covered employer 2) have worked for the employer for a total of 12 months 3) have worked at least 1,250 hours over the previous 12 months 4) work at a location where at least 50 employees are employed at the location or within 75 miles of the location. |
| A covered employer is required to maintain group health insurance coverage for an employee on FMLA leave whenever such insurance was provided before the leave was taken and on the same terms as if the employee had continued to work. If applicable, arrangements will need to be made for employees to pay their share of health insurance premiums while on leave. In some instances, the employer may recover premiums it paid to maintain health coverage for an employee who fails to return to work from FMLA leave. |
| Intermittent/Reduced Schedule Leave - The FMLA permits employees to take leave on an intermittent basis or to work a reduced schedule under certain circumstances. |
| How FMLA Effects Your FSA Plan Employees on FMLA Leave have 4 Options: 1. Pre-Pay. This means means an employee who is on leave can can pre-pay on a pre-tax basis to continue participation in the plan 2. Pay-as-you-go Employees who select this option can pay the required "premium" while on leave. The payment can be made on an after-tax basis or pre-tax if they are still receiving income from the employer. 3. Catch-up. Employees can increase their deduction for the remainder of the plan year after they return from leave. 4. They can also drop coverage for the FMLA leave period, and the start coverage when they return with a pro-rata reduction in their election. They would not be permitted to send in expenses incurred during the leave. Employee can be required to continue coverage during leave if they are required to do so for non-FMLA leave. This can be a sticky topic, so please review the documents for more detail. Also don't forget to offer them the ability to enroll during your open season. |
| Department of Labor - FMLA |