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Company policies determine obligation to pay employee on leave of absence

May 2024 employment law letter
Authors: 

Dana Dobbins, Holland & Hart, LLP

Q       We have an employee whose essential functions require the use of their hands. They have requested an accommodation, and their physician has recommended time off until specific medical restrictions can be determined. What is our obligation to pay this employee during this doctor-recommended leave of absence?

Depending on your policies, you may allow or require the employee to use accrued paid vacation or sick leave toward their absence. Beyond paying appropriate sick leave and perhaps applying paid vacation leave, you aren’t otherwise required to pay their regular wages while they’re on an extended medical leave of absence.

Specifically, under the Family and Medical Leave Act (FMLA), employers aren’t required to pay employees on medical leave. The FMLA provides job-protected, unpaid leave to eligible employees for up to 12 weeks. Sometimes, however, an employer’s policies allow or require an employee to use accrued paid vacation or sick leave for some or all of this period. In this case, the employer would provide some type of pay to the employee during the leave of absence. Be sure to review your policies to determine whether you allow or require employees to use some of their paid time off toward extended FMLA leave.

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