Holiday Pay while on FML

safety

OK, I've done a search but after reading all of the posts I'm more confused. Here is the deal; we have an ee on approved FML for a surgery in his family. While on FML a company paid holiday occurred and we have a section in our handbook that states the typical must work the day before and the day after to receive holiday pay. Another section in the Handbook under holiday states that an ee will receive no pay for a holiday that falls during a layoff, sick leave or any other leave of absence. We consider holiday pay a benefit and I read the regs that you cannot deny an ee on FML benefits.

My payroll clerk does not want to pay for the holiday but I do. What would my Forum friends do in this case?

marc

I would not pay the holiday. Other benefits require EE to participate at certain levels. Health Insurance is an example. If the Co requires the EE to pay a portion of the premium to qualify for the benefit, the EE is not relieved of his/her responsibility to pay. The company's holiday policy has similar strings attached - the EE must work the day before and the day after to be paid, and cannot be paid for a holiday while on any other leave of absence.

I know others will disagree with this so you may not end up with any realy help for your decision, but this is my opinion.

POPEYE

Yes I do respectfully disagree. You cannot deny any benefit while an EE is on an approved FML. The assumption must be made that if it were not for them being on leave that they would have worked the day before and the day after the holiday if that is what your policy dictates.

safety

[font size="1" color="#FF0000"]LAST EDITED ON 07-07-04 AT 04:08PM (CST)[/font][br][br]OK, thanks marc. Our handbook states, "that such employee should work the last scheduled workday preceding the holiday and the next scheduled workday following the holiday..."

He did work these scheduled days, before and after his FML. I am focusing on scheduled and maybe that is where my confusion is.

smaces_twin

The key is you deny pay for any sick leave, layoff or ANY leave of absence. The argument that you hare denying an FML person pay because they are on FML does not wash because you deny it to everyone that is out. If you denied only for ee's on FML, you would have a problem. Don't pay it- your policy clearly spells that out.

safety

Yes our handbook has that statement and that is what the payroll department is referring to. I consider holiday pay a benefit and doesn't the FML act address benefits as if the ee was not gone at all? I am going to consider a change in the handbook for this purpose. I don't believe it is fair to an ee to deny holiday pay while on FML but that is just my opinion.

Rockie

Our practice does not pay holiday pay while on any unpaid leave of absence as per our policy. As long as the employee (for whatever reason) is on paid leave, they are paid for the holiday. If they are on unpaid leave (for whatever reason), they are not paid for the holiday.

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 07-08-04 AT 09:07AM (CST)[/font][br][br]Ninety-nine percent of 29 CFR 825.209 (Benefits) discusses the employer's group health plan and the requirement that this benefit be maintained while the ee is on FMLA. The very last sentence in that section is as follows: "An employee's entitlement to benefits other than group health benefits during a period of FMLA (e.g. holiday pay) is to be determined by the employer's established policy for providing such benefits when the employee is on other forms of leave (paid or unpaid, as appropriate)."

So, it is very apparent that the employer's standard rule applies to holiday pay. There is no requirement in the Act that trumps the policy and practice already in effect.

safety

Thanks to all who responded to my question. We have decided not to pay holiday pay to this ee per our policy of no holiday pay while on a leave of absence. At this point I am not going to change the handbook or change what has been past practice. Again thanks to my Forum friends for all advice given. It's comforting to know there are knowledgeable people on this Forum whom I can count on in a pinch. xhugs