Human Resource Blog

FMLA and benifit premiums

When an employee is taking FMLA or on STD disability can the employer require that the employee pay for the Health Insurance premium that would normally be deducted from their paycheck if they were recieving one? And if the employee refuses to pay their portion of their premium can the policy be terminated?

What would be the case if the employee was off due to a work comp injury as well? Are they still required to pay their Health Insurance premiums? And can the employer terminate it if they refuse.

(Michigan)

Thank You

Yes. A major provision of the federal FMLA is that the employees group health insurance must continue on the same basis as before. This means that if the employee was paying a portion of the premium in the past, the employee can be required to pay the same portion of the premium while on FMLA leave. An employees health insurance coverage can be cancelled if he or she fails to pay their portion of the premium on time.

Under FMLA, however, the employer must continue to pay any portion of the health insurance premium that the employer paid in the past.

Jessica is on FMLA leave. Employees at her company pay 60% of the total health care premium, or $75 per pay period. The employer can require that Jessica pay $75 per pay period. If she fails to do so, Jessicas health insurance can be cancelled.

Amys employer generously pays 100% of employees health insurance premium. While Amy is on FMLA, the company must continue to pay the entire premium for her health insurance.

A few companies will advance the premium to the employees, and deduct it once the employee returns to work. However, this is not required under FMLA, and most companies require that the employee send them a check, in advance, for the premium each month. Advancing the premium poses a problem in some states due to the deductions. If the company chooses this option, they should have a very clear signed agreement in place.

Neither disability laws nor Workers Comp law address employee health insurance directly. But usually an employee who is on Workers Comp is concurrently on FMLA.