Navigating and complying with federal and state leave laws can be confusing for employers and employees. A recent clarification by the U.S. Department of Labor (DOL) explains how the Family and Medical Leave Act (FMLA) rules work along with state and local paid leave programs.

Below are the key takeaways from the DOL’s latest opinion letter.

The FMLA Substitution Rule

The FMLA allows eligible employees to take unpaid, job-protected leave for reasons such as caring for a new child, dealing with a personal health issue, or helping a sick family member. To help employees during this unpaid leave, the FMLA includes a “substitution rule.”

Under the “substitution rule” employees can use their paid leave such as vacation or sick days during their FMLA leave to receive some income during their time off. This rule only applies if the FMLA leave is unpaid, and the employee is not being compensated through workers’ compensation or disability insurance. The DOL’s recent clarification extends to state and local paid leave programs.

The DOL’s Recent Clarification

The DOL recently clarified in their opinion letter that employers cannot force employees to use their paid leave if the employee is receiving compensation through a state or local family leave program. The letter explained that when employees are on paid leave through employer-provided disability plans, workers’ compensation, or state paid leave programs, the “substitution rule” will not apply.

Tips to Stay Compliant

Here are important tips to help you remain compliant:

  1. If an employee receives state or local paid leave benefits, employers cannot require the employee to also use their paid time off.
  2. Employers and employees can agree to let the employee complement their state or local paid leave benefits with paid time off to help the employee receive up to 100% of their usual pay during their leave.
  3. It’s critical for employers to review the paid leave laws in the state(s) they operate and/or have worksite employees in since they can vary significantly from one state to another.

 

Why Does This Matter?

With more states adopting their own paid family leave programs, it’s becoming more difficult for employers to manage leave policies. UniqueHR has been helping business owners with all topics related to HR for over 30 years. For a free consultation, please reach out to us today at 800.824.8367 and we’ll be happy to assist you.