Hey, Warriors and Bosses!
On January 14, 2025, the U.S. Department of Labor (DOL) issued an Opinion Letter shedding light on the interplay between the Family and Medical Leave Act (FMLA) and state or local Paid Family and Medical Leave (PFML) benefits. This guidance is particularly relevant for employers navigating the complexities of leave policies.
Understanding the FMLA Substitution Rule
Under the FMLA, eligible employees are entitled to up to 12 weeks of job-protected leave for specific family and medical reasons. Typically, this leave is unpaid. However, the FMLA allows employees to “substitute” accrued paid leave—such as vacation or sick leave—for unpaid FMLA leave. This means the paid leave runs concurrently with FMLA leave, ensuring employees continue to receive income during their absence.
The DOL’s Clarification
The recent Opinion Letter addresses whether the FMLA substitution rule applies when an employee is concurrently receiving PFML benefits. The DOL clarifies that if an employee is receiving PFML benefits, the FMLA substitution rule does not apply because the leave is not unpaid. This aligns with existing regulations stating that when an employee receives payments through short-term disability or workers’ compensation benefits, the substitution rule is inapplicable. In such cases, the employee and employer may agree to use accrued paid leave to top up the partial benefits, but it’s not mandated.
Implications for Employers
Employers should review and, if necessary, update their leave policies to reflect this clarification. It’s essential to recognize that when employees are on FMLA leave and receiving PFML benefits, they cannot be compelled to substitute accrued paid leave. However, employers and employees can mutually agree to use accrued paid leave to supplement PFML benefits, ensuring the employee receives full wage replacement during their leave.
Navigating the labyrinth of leave laws can feel like trying to assemble a jigsaw puzzle in the dark. But with the DOL’s recent clarification, employers have one less piece to fumble with. Remember, when in doubt, always “leave” room for clarity!
Be Audit-Secure™!
Lisa Smith, SPHR, SCP
Note: This blog post is for informational purposes only and should not be construed as legal advice. Always consult with a legal professional for advice specific to your situation.
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Lisa Smith, SPHR, SHRM – SCP
Certified EEO Investigator (EEOC)
Lead Support and Content Chief – HelpDeskforHR.com
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