Q. An employee went on , but we failed to specify the method in which he would pay his share of health insurance premiums. It’s now three months later, the employee has returned to work and he hasn’t paid a dime. We want to collect the premium. What can we do?—D.T., Texas
A. When employees go on leave, they’re entitled to continued participation in your group health insurance plan under the same terms that existed immediately before they left on leave. That means, for example, that if the employee normally pays 20 percent of his health care premiums, he must continue to do so while on FMLA leave.
Your predicament highlights the importance of specifying a payment method in advance of the FMLA leave. In your case, we suggest treating the employee’s unpaid contributions like any other debt to the company. Request that the employee sign a form authorizing you to make deductions from his payroll until he satisfies the debt.
Laws regarding payroll-deduction authorizations vary from state to state. But most states allow such deductions as long as they don’t cause the employee to earn less than minimum wage.
Bottom line: If your employee ultimately refuses or fails to repay the contributions, it’s time to drop the hammer!
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2705/use-payroll-deduction-to-collect-unpaid-premiums "
- Failing to follow call-in rules doesn't void FMLA claims
- What time off counts for the purpose of FMLA intermittent leave?
- Is probationary employee entitled to holiday pay?
- Cut health costs by dangling the right opt-out incentives
- Extremely small businesses may not be bound by FLSA minimum wage, overtime rules