If you have a sick policy, you can deduct from it. If the employee is eligible for FML, definitely deduct time for FML intermittent leave. Be sure to notify the employee you have granted intermittent leave and are deducting time from the 12-week balance.
While that may be quite legal we never deducted sick time from an employee on w.c. We did however run their FMLA concurrent with the leave. We felt the benefit of this from a morale standpoint was more important than deducting sick time.
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