Vol.2, No.2 Personnel Pointers

Summer 1997


To pay or not to pay on FMLA

 

Is leave taken under the Family and Medical Leave Act (FMLA) paid or unpaid leave? This is a question that is frequently asked and the answer is not necessarily a simple one.

Under the FMLA, employers are required to grant up to 12 weeks leave per 12 month period to eligible employees:

· for the birth of a son or daughter, and to care for the newborn child;

· for the placement with the employee of a son or daughter for adoption or foster care;

· to care for the employee's spouse, son, daughter, or parent with a serious health condition; and

· because of a serious health condition that makes the employee unable to perform the functions of the employee's job.

There is no requirement under the FMLA that this leave be paid but there are circumstances under which an employee can substitute paid for unpaid leave or the employer can require the employee to substitute accrued paid for unpaid leave.

If an employee has accrued sick leave, personal leave, vacation, or other such leave, the employee may substitute appropriate leave for unpaid leave. However, this does not give the employee the right to substitute paid leave that is inconsistent with the employer's leave policy. For example, if the sick leave policy allows use of sick leave for the employee's illness or the illness of the employee's child, the employee could use sick leave for his own or his child's serious health condition that qualifies for FMLA leave. If the same policy did not allow use of sick leave for the illness of a parent, the employer would still be required to grant FMLA leave for the serious health condition of the employee's parent but would not be required to grant paid sick leave in substitution of any or all of the employee's unpaid FMLA leave. The employee could still use other types of leave, such as accrued vacation, that would not be inconsistent with the employer's policies.

If an employee does not choose to substitute accrued paid leave for unpaid FMLA leave, the employer may require the employee to substitute accrued paid leave for unpaid leave. To ensure consistency of treatment of employees, the employer should only require an employee to substitute leave that is appropriate with the reason for the employee's FMLA leave.

If neither the employer or employee elects to substitute paid for unpaid leave, the employee remains entitled to any accrued leave the employee has at the beginning of unpaid FMLA leave.

If either the employer or employee elects to substitute paid for unpaid FMLA leave, the paid leave counts against the employee's 12 week leave entitlement under FMLA. The maximum obligation an employer has under FMLA is 12 weeks of leave per 12 month period either paid, unpaid, or a combination of both. To help protect the employer against an employee's possible entitlement to 24 weeks protected leave under FMLA, it is important that the employer choose a specific method of measuring the 12 month entitlement period (See the article en-titled "FMLA-What's Your Year" in Personnel Pointers vol. 1, no. 2 or call TAC's Personnel Assistance staff to get a copy).

While most paid leaves can be substituted for unpaid leave under FMLA, there is one type of leave that cannot be counted as part of FMLA leave. Under the Fair Labor Standards Act (FLSA) public sector employees can be paid for overtime in the form of compensatory time at one and one half times the overtime worked.

This earned compensatory time, however, cannot be counted against an employee's FMLA leave entitlement. For example, if an employee is out for an FMLA leave qualifying reason, he may elect to use FLSA compensatory time for the absence. In this situation, the employer cannot count the absence against the employee's FMLA leave and the employee is still entitled to his full 12 weeks leave under FMLA.

Full information on the requirements of the Family and Medical Leave Act is available from the U.S. Department of Labor's Wage and Hour Division.

 

Published by the Texas Association of Counties