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How does an employee’s FMLA leave status affect how we conduct a layoff?

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in FMLA Guidelines,HR Management,Human Resources,Leaders & Managers,Management Training

Q. I am the HR manager of a company with about 350 employees. I have just learned that the company is eliminating one product line and, as a result, there will be a layoff in that department. One of the employees who would be laid off is on FMLA leave. How do I handle this situation? Do we include her in the layoff even though she is not working? Or is she exempt from layoff because she is on FMLA leave? If she is included in the layoff, do we lay her off now or wait until her leave is over? If we lay her off now, do her insurance benefits stop or continue until the FMLA leave would have concluded?

If you don't comply with the new regulations, you're now guilty of "interfering" with another person's FMLA rights — and that's a class action suit waiting to happen.

Get your managers all the training they need to manage employees' claims under the new FMLA regulations during our half-day interactive webinar. FMLA Advanced Training: How to Comply with the New FMLA


A. Your question, of course, has several parts. First, an employee on FMLA leave has no greater rights than if she were still at work. So, if the employee on FMLA leave would have been selected for layoff if she were at work, then you can include her in the reduction in force. Otherwise, she would receive greater rights than if no leave had been taken.

Ensure that you can prove that she was properly included in the layoff. If questioned, the burden will be on you to establish the legitimacy of your decision.

The FMLA Advanced Training workshop offers practical advice on how to administer the new FMLA requirements — and how those new requirements work with the law that's been an administrative nightmare for more than 15 years. You'll learn how to apply the FMLA in the face of regulatory updates, statutory changes and new court rulings. FMLA Advanced Training: How to Comply with the New FMLA

The second part of your question involves the effective date of the layoff. Again, you can treat an employee on FMLA leave the same as if she were at work. Thus, if other employees are to be laid off on a certain date, she can be included even if this is before her leave would have ended.

Finally, while employees are generally entitled to continuation of health benefits while out on FMLA leave, that obligation ends if the employee is laid off and employment is terminated during the leave. Your obligation to provide insurance coverage under the FMLA, therefore, would end on the date of her termination and you would have no obligation to continue this coverage to the date her leave would have ended.

The employee would, of course, be entitled to the same COBRA notice as all other employees.

How well do you understand the legal complexities in the new FMLA regulations? Test your expertise with these questions:
  • Which of these people are covered by the FMLA? a) The spouse of a regular armed forces member. b) The child of an employee who has just received notice of active duty. c) The parent of a member of the National Guard. d) All of the above.
  • Under the new regs, what should your reaction be when an employee wants to discuss FMLA?
  • What now qualifies as "sufficient" notice of their FMLA rights?
  • How long of an absence is too long when a missing employee reappears and claims FMLA protection?
  • Will "Tweeting" the rights and responsibilities notice stand up in court?
The good news: You can get answers to these questions and more in our new half-day interactive webinar, FMLA Advanced Training.

Best of all, you'll be learning from the attorney who literally wrote the book on FMLA compliance, Matthew Effland, Esq. As a free bonus for attending, you'll receive a copy of his newly updated book, The FMLA Compliance Guide: Practical Advice on Managing Family and Medical Leave.
Register now for the FMLA Advanced Training webinar!

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