FMLA and merit increase

lfinkel

My company is planning to implement new merit program this year based on anniversary date. My question is, if you out on FMLA what do you do about effective date of your increase? Do you proceed as it is or wait until this person comes back and make it return from FMLA date effective date for merit increase?

Thank you.

marc

Good opportunity for a judgment call here. Obviously a couple of ways to go. The FMLA says you must return to the same or equivalent job and pay. It also says you cannot penalize with respect to benefits they would have gotten anyway. I am not sure a raise would qualify for a benefit, but I think it would be reasonable to first require the EE to return to work and demonstrate ability to pick-up where they left off. How long will it take them to get up to speed. Then I would consider the raise based on returning to the prior performance levels. It would be reasonable to have them wait the amount of time they were out to put the raise into effect.

Just an opinion.

rad

If our employees are out on LOA, sickness, FMLA, etc when an increase is due (all our employees get them on the same date) they get the increase effective the day they return to work.

irenesmsaclaims

Since FMLA is unpaid leave, how would they get the increase during it anyway? Unless you pay during a FML.

rad

My company pays employees full pay during FMLA absences.

bstephan1

I agree with Marc do nothing until they return. Remember you treat FMLA like any other extended leave. We require employees to work for a twelve month period before they are reviewed. As long as you have this policy for all extended absences it's OK for FMLA. I'm still stuck at "serious health condition". That is always a challenge especially with the "new" privacy issues with HIPPA. That's for another day. Good luck.

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 12-11-03 AT 10:48AM (CST)[/font][br][br]I don't see it as a judgement call. It depends on what your policy is for raises or benefits that come due while one is out on a leave of absence, whether it be medical or some other leave of absence. If you don't have a policy, you ought to craft one that applies to all types of absences equally. You certainly wouldn't want to have the medical absence more harshly stated. The policy should also be re-stated in your FMLA policy so as to be perfectly clear to employees and hearing officers.

A raise that might kick in while someone is on unpaid leave would indeed have consequence. On FMLA, most people do get a paid holiday. A raise would factor into that amount. Also, granting the raise on a certain date, as an anniversary date for example, would keep the continuity in place for subsequent raises. And if they're being paid through vacation, the raise would impact that too.

marc

Good points Don, but I am curious about your statement that most people get a paid holiday while on FML. Are you referring to the tandem use of leave banks while FML is running?

lfinkel

Thank you very much for your responses.

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 12-11-03 AT 03:02PM (CST)[/font][br][br]At the four places I've worked, since the inception of FMLA, those on FMLA have gotten a paid holiday, since, were it not for the FMLA, they would have had it, while in any type of payroll status. Each of these policies has granted paid holidays to employees while in payroll status, while on duty or not. With policies worded like that, it would be illegal not to grant the holiday to someone on FMLA.

marc

I understand your reasoning. Do you actually issue them a check? Does that also mean they accrue some tiny piece of vacation and sick leave for that day?

Do you think it makes a difference if your companies policy says you must have worked the day before the holiday?

I appreciate your perspective on this issue.

POPEYE

I sure don't want to put words in Don's mouth but as he said, anything including holiday pay, vacation or sick leave accrual must be given just as if the EE is at work when they are on FMLA.

marc

"Since you are not actually working, you do not accrue benefits during your time on leave. This includes seniority, vacation time and sick time. Conversely, you cannot lose or forfeit any benefits by going on leave - you will return with exactly the same level of seniority you had when you left."

The above however does not address holiday pay. That is why I was curious if Don was treating it differently.

When you are out on FML, you receive any cost-of-living increases because they are not based on performance of any other ocndition, any unconditional pay increases given out while you were on leave will also be given to you when you return.

Other types of raises, such as those given in conjunction with an annual review, are handled differently by different employers, based on several policy factors. That means it is at the discretion of the ER and any policies they may have addressing these kinds of raises. They must be consistent for all EEs, but FML does not dictate how to handle them.

Don D

If the employer had a requirement of attendance prior to and following a holiday, I do not think it could apply in the case of FMLA. The employer can't penalize the employee in any way for the event of FMLA, including perfect attendance recognition, etc. So, you can't charge them for not being there. FMLA very specifically prohibits the employer from applying any penalty that would not have been advanced had it NOT been for them being on FMLA. And we didn't issue a check; we direct deposited one day's pay or two, as the case were. Accrual programs are one thing. The ones I've experienced are not accruals, just acknowledgements of certain amounts eligible for come January 1 based on total years of service. I hate to get anal about this, but that's the way it's been. Do I need to apologize for that remark?

marc

Not to me.