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Will Submitting a Letter of Resignation with a Future Date Protect Employee Benefits

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  • 04-23-2015, 08:07 AM
    confusedinmichigan
    Will Submitting a Letter of Resignation with a Future Date Protect Employee Benefits
    My question involves labor and employment law for the state of: Michigan

    I have a bit of a complicated situation. My husband was offered a job in a different state that will start in mid-July so my employer has known that I have an end-date fast approaching. I'm also 8 months pregnant and I receive excellent health insurance through my employer. I qualify for FMLA, which I would like to use to cover the birth and until my husband begins his new job. Because my employer knows I will be moving and not returning to my position, she would like me to submit a letter of resignation with a future date (mid-July) so she can interview and fill my position.

    I am wondering whether if by submitting this letter my benefits will be in jeopardy. Both my manager and my HR reps have assured me verbally that they will honor my benefits if I submit a letter, but they will not put that in writing. Please advise!
  • 04-23-2015, 08:21 AM
    cbg
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    I do not know your manager or your HR Rep, so I have no way of knowing how trustworthy they are. There's no way I can tell you for certain that they will or will not keep their promise to honor the future date of your resignation or to keep your benefits in place until the date that is convenient for you. Since you have already given them unequivocal notice that you will not be returning, they are not required to continue your benefits.

    What I can tell you is that in the absolute worst case scenario you will be eligible for COBRA.
  • 04-23-2015, 08:28 AM
    budwad
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    Does it make sense to you OP that your letter of resignation is needed to interview and fill your position? They can do that with or without the letter.
  • 04-23-2015, 09:05 AM
    confusedinmichigan
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    I was told that it is the company's policy that they cannot interview/fill a position without a letter of resignation since FMLA would protect my place with the company. I suggested creating a different title/position for me and then they could fill my "old" position, but they said they couldn't do that either.

    - - - Updated - - -

    Hi cbg,

    Do you mean that because they know my husband has a job opportunity in another state that that equals unequivocal notice? I haven't put anything in writing about what my plans are... If you could clarify what you mean that would be great!
  • 04-23-2015, 09:16 AM
    budwad
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    They could surely interview and screen prospective candidates. Would there be any training necessary to fill your position? If so, there has to be an overlap of you leaving and a new hire.

    But I think the point is that once you submit a LOR the company would be free to terminate you at any time they want. They do not have to wait until the date you specify.
  • 04-23-2015, 11:55 AM
    cbg
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    Confused - your husband has definitely accepted the job? You are definitely moving out of state? Is this correct?
  • 04-23-2015, 12:46 PM
    confusedinmichigan
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    He has accepted the job and is moving out of the state. And yes, I will be joining him, but I never explicitly told my employer this. They just assumed I would be going with him and not returning. It's a fair assumption, but I've been purposefully vague in my conversations about my plans because I was worried they might not grant me my maternity benefits.
  • 04-23-2015, 12:47 PM
    chyvan
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    Don't submit the resignation. They can accept it early, and then you'll be sorry. The thing is July is a long time away. Read stories on the internet where people have moved cross country only to find out that when they go to start the job that the employer has changed their mind and there is no position anymore. Then you're out of work, probably left a job, and in a strange place with no support system anymore. Also, for all you know, you might find out that your husband is cheatting on you and want a divorce.

    The employer has every right to fire for whatever they feel like, and this "letter of resignation" business just sounds like they are up to something. You just quit when you're good and ready.
  • 04-23-2015, 12:56 PM
    COlandlord
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    What benefits are you talking about? Just health? From your post, you are not planning on returning after FML, correct? Be mindful that the employer has the right to come after you for health premiums (theirs and yours) paid on your behalf when you don't return.
  • 04-23-2015, 06:44 PM
    cbg
    Re: Submitting a Letter of Resignation with a Future Date - Protection of Benefits
    Whether you do or do not submit the letter of resignation is between you and your employer. I am not going to formulate an opinion on that.

    I want to reiterate that I do not know your manager and HR personnel. I am not telling you what they will do. I am telling what the law will allow them to do.

    It doesn't matter if you submit a letter of resignation now, or wait until the day before the moving van shows up to take you out of state. Since you are not returning to work, your employer CAN (I am not saying they WILL - I am saying they CAN) cancel your health insurance and require you to reimburse them for the premiums they have already paid during your leave. They can do this on day one of your FMLA or on the last day; it doesn't matter when you "officially" tell them you're not coming back. As soon as you do, and you will have to eventually, they have the option that the law expressly gives them - to cancel your benefits and require you to reimburse them for the premiums they paid on your behalf.

    This is not one of the things you'll see me explain that are legal because there isn't any law making it illegal; this is legal because the law specifically gives them permission to do so. Taken directly from the US DOL website:

    An employer's obligation to maintain health benefits under FMLA stops if and when an employee informs the employer of an intent not to return to work at the end of the leave period, or if the employee fails to return to work when the FMLA leave entitlement is exhausted. The employer's obligation also stops if the employee's premium payment is more than 30 days late and the employer has given the employee written notice at least 15 days in advance advising that coverage will cease if payment is not received.
    In some circumstances, the employer may recover premiums it paid to maintain health insurance coverage for an employee who fails to return to work from FMLA leave.


    The circumstances in the last sentence refer to a voluntary return; the employer may not recover premiums from those employees who are still medically unable to work at the end of their 12 weeks.
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