Does returning FT E have to pay premiums if returning to part time position?

Elizabeth

As you know, employees who do not return to work after the twelve weeks for reasons other than a continued serious health condition, must reimburse the employer for healthcare premiums paid during the 12 weeks.

We have an employee who is returning to basically the same FT position she held previously, but she has requested that we make the position Part Time which works out well for us and we have agreed to do.

My question is that since she is 'returning' to a position that does not include healthcare benefits (no healthcare for PT), can we/should we make her pay the three months of healthcare premiums or does returning part time fully qualify as 'returning' per the Act. Or is this one of those instances where the employer has discretion in which case we'd only have to be concerned with consistency for the future.

System

Elizabeth
We have the exact same situation here with an employee who will be returning after 12 weeks FMLA for the birth of a child. She has requested to come back as a PT employee, which works out fine with us. However, a PT employee does not have health insurance. We have decided to not change her classification from FT to PT until her 1st day back in the PT position. We feel this is fair and does not break any FMLA rules that I know of. Let me know if you find out something different.

Rockie

I would say while she was out,she was covered under full time benefits and would not be subject to having to reimburse the company. Since this is also an agreeable situation for both of you, I would just consider her status changed on her first day back.

Carol CA

I would agree too. She would still owe you for any employee portion of the premiums that she did not pay while out on FMLA, but not for the full amount of the premium.

LFernandes

I agree that she would still owe the amount of her contributions while she was out on leave. I would have her sign a payroll deduction form authorizing the reimbursement of back contributions, especially since she is going PT. Also, a change in her hours and loss of benefits would become a COBRA qualifying event.