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  1. #1
    Join Date
    Oct 2008
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    5

    Default Can an Employer Request Reimbursement of Benefits

    My question involves labor and employment law for the state of: Nevada.

    After completing 12 weeks of FMLA (6 of which were paid short term disability) after the birth of my baby boy, I found out that my employer was planning to cut my hours, so I resigned. A few weekds after my resignation, I received a letter from them requesting reimbursement for 3 months worth of THEIR portion of my medical benefits (not my portion that usually came out of my check). I understand that they can request this, however I am wondering if this part of the law would apply to the 6 weeks of paid leave....

    "(d) When an employee elects or an employer requires paid leave to be
    substituted for FMLA leave, the employer may not recover its (share of)
    health insurance or other non-health benefit premiums for any period of
    FMLA leave covered by paid leave. Because paid leave provided under a
    plan covering temporary disabilities (including workers' compensation)
    is not unpaid, recovery of health insurance premiums does not apply to
    such paid leave."

    http://www.dol.gov/dol/allcfr/ESA/Ti...CFR825.213.htm


    Also, I never received any official paperwork from my employer stating my FMLA was approved or denied, other than an email verificaition of my submittal. I was told verbally that they may want to recover my usual premiums that came out of my paycheck, and I agreed to that, but nothing was ever mentioned about them recovering their portions until I got the letter.

  2. #2
    Join Date
    Jun 2006
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    Massachusetts
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    Default Re: Can an Employer Request Reimbursement of Benefits? Nevada

    The FMLA statute expressly gives the employee permission to require the employer to repay them for health insurance premiums incurred on their behalf if the employee voluntarily does not return after FMLA leave.

    You did not substitute paid leave (vacation or sick time) for any part of your leave; receiving STD benefits is not the same as paid leave.

  3. #3
    Join Date
    Mar 2005
    Location
    Michigan
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    28,906

    Default Re: Can an Employer Request Reimbursement of Benefits? Nevada

    I think you're both on the same page - and citing the same rule. The question appears to be whether the general rule (29 CFR 825.213(a)) applies to the entire leave, or if the employer is barred from recovering its share of health insurance premiums for the six weeks of paid leave (under a temporary disability plan), out of twelve weeks total (29 CFR 825.213(d)).

    I would interpret subsection (d) as prohibiting the employer from recovering its share of premiums for the six weeks of paid leave "Because paid leave provided under a plan covering temporary disabilities (including workers' compensation) is not unpaid", but not for the remaining unpaid weeks of leave where subsection (a) applies. I haven't tried to dig deeper, "you're the expert", and I've seen lots of cases where courts or administrative agencies don't share my interpretations, but to me, short term disability coverage sounds like "a plan covering temporary disabilities".

  4. #4
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    Massachusetts
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    Default Re: Can an Employer Request Reimbursement of Benefits

    There is a difference between "substituting paid leave" i.e. using vacation or sick leave, and receiving partial disability benefits while on unpaid leave, however.

    The statute refers to the first. The poster evidently had the second happen.

  5. #5
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
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    5,252

    Default Re: Can an Employer Request Reimbursement of Benefits

    cbg, I wonder why they would include WC as paid leave (not unpd. leave) but not STD. The actual FMLA statute says they can recover for any period of unpaid leave. . .
    *(no actual mention of what qualifies as pd. leave & what doesn't)*

    FMLA:
    29 U.S.C. Section 2614. Employment and benefits protection

    (c) Maintenance of health benefits

    (2) Failure to return from leave
    The employer may recover the premium that the employer paid for
    maintaining coverage for the employee under such group health
    plan ***during any period of unpaid leave*** under section 2612 of this
    title if -

    (A) the employee fails to return from leave under section
    2612 of this title after the period of leave to which the
    employee is entitled has expired; and
    (B) the employee fails to return to work for a reason other
    than -

    (i) the continuation, recurrence, or onset of a serious
    health condition that entitles the employee to leave under
    subparagraph (C) or (D) of section 2612(a)(1) of this title;
    or
    (ii) other circumstances beyond the control of the
    employee.

    I just never gave it much thought before.

  6. #6
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    Jun 2006
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    Massachusetts
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    Default Re: Can an Employer Request Reimbursement of Benefits

    Don't ask me. All I know is that from an HR standpoint, STD benefits are not considered paid leave; they are considered income replacement during a period of unpaid leave.

    But the poster is free to contact the US DOL and see if they agree with her.

  7. #7
    Join Date
    Oct 2008
    Posts
    5

    Cool Re: Can an Employer Request Reimbursement of Benefits

    Thank you for your responses.

    I will contact the DOL to see what they think. At the least, my ex-employer should have to re-calculate what they say I owe them. They quoted me a monthly rate and charged me 3 months. 12 weeks does not equal 3 months in my definition, so I think they should re-calculate it to a weekly charge. That would at least save me a few $$$.

  8. #8
    Join Date
    Apr 2007
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    Il.(near StL,Mo.)
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    Default Re: Can an Employer Request Reimbursement of Benefits

    Quote Quoting cbg
    View Post
    Don't ask me. All I know is that from an HR standpoint, STD benefits are not considered paid leave; they are considered income replacement during a period of unpaid leave.

    But the poster is free to contact the US DOL and see if they agree with her.
    Ok. As you know, I'm not in HR or never was but I was just wondering. WC is income replacement also if you're on "unpaid" FMLA leave. Maybe they just consider WC & STD different for some reason. Thanks.

  9. #9
    Join Date
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    Massachusetts
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    Default Re: Can an Employer Request Reimbursement of Benefits

    I think the difference may be that WC is the responsibility of the employer, regardless. If the employer were providing STD benefits as salary replacement, I'm sure that would be considered "substituting paid leave". But if Unum or Provident or MetLife is paying a percentage of salary while the employee is on an upaid basis, I've never heard of that being considered "paid leave".

  10. #10
    Join Date
    Apr 2007
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    Il.(near StL,Mo.)
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    Default Re: Can an Employer Request Reimbursement of Benefits

    That makes sense. I do believe they are probably talking about employer paid benefits - I was thinking employer pd. STD. I also doubt it would apply to a private STD policy.

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