Move back vesting dates due to FMLA?

Ruskanen

Ever since I have worked at my current company, they have had the policy in place that if an employee is on leave 60 days or longer, "the benefit vesting date (to accrue paid time off) and next performance evaluation date will be delayed by the time of the leave of absence, rounding off months to absolute numbers." Since I've been HR manager, I haven't had anyone on leave longer than 60 days but now I have someone that may fall into that category.

My question is, can we actually push back their vesting/accrual dates when they are on FMLA? Do any of you do that? I've never heard of that before and now I'm questioning that policy. I see the logic in it. If you are not here, we can not evaluate your performance and you are not working the time needed to earn paid time off. But, since I've never heard of that as a common practice, I'm wondering if it is legal.

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 12-20-04 AT 03:35AM (CST)[/font][br][br]It's my understanding, reading the Act, that you cannot in any way penalize an employee for their FMLA-covered absences. That would apply to perfect attendance, bonuses, leave accumulation and tenure, as I understand it. But, I'm standing by to be corrected.

But, if it's your company policy that all periods of absence affect performance review periods, the FML Act wouldn't carve out a safety net just for those in that status.

You should do some research into the IRS regs on 401k programs before you impact someone's vesting schedule. That's pretty tricky federal stuff. It's been several years since I was a 401k administrator; but, the figure 1000 hours worked comes to mind.