Repayment of Benefit Premiums

bamahr

Employee who are out on FMLA are not required to pay their portion of benefit premiums while they are on leave - when they return we arrange repayment - typically on a payment plan - through payroll deductions. I have an employee who did not return and owes $800+ in premiums (her part) - I know she won't pay-up unless I take her to court - can I do that? One of my bosses wants to?

Geno

bamahr,

Maybe. FMLA allows the employer to recover the cost of maintaining group health benefits of the non-returning FMLA employee under certain circumstances. Essentially, the employee in question must choose the non-return route of their own volition and not because of something beyond their control. See section 825.213 of the regulations for a complete discussion of your possibilities.

Geno, SPHR

lorrie

I don't see any reason why you can't take her to court. Unfortunately, the cost of going to court can sometimes be greater than the potential gain. Your call. Good Luck!

In addition, as Geno points out, if the employee chooses not to return after FMLA, (under some circumstances) you can try to collect the full amount of the premium (ee AND er share.)

Our policy requires that an employee pay their share of the premium at the same time that it is normally withheld from their check (on payday), and their coverage will cease if their payment is over 30 days late. This means they have to be making payments during their leave. It doesn't prevent loss, but can help limit it.

POPEYE

Ditto to Lorrie. With a written policy outlining a "grace" period such as the 30 days, as she said it will greatly minimize your potential loss.

dchr9203

Yes you can. When I was in healthcare, we used the hospital's collection service (the one used for non-paying patients). Might be a service locally that would charge a small fee or % to send the credit collection notices and threaten legal action. First thing once you've decided if its worth pursuing through small claims or a collection service though, is to notify your ex-employee that she owes the money and when you expect payment, or else....

bamahr

I have sent her a couple certified letters which she won't sign for. We heard through the grapevine she was working elsewhere - we confirmed and she continue to ignore. I would prefer to take this as lesson learned - but one of the owners want to collect the money. I really don't want to stand in court (I agree can be costly) against a single mother of three to collect $800. Thanks for the input - we are changing our policy to collect during leave.

dchr9203

I would still resend your letters via U.S. Mail, 1st Class and see if she responds. Probably won't, but you'll know she knows. I wouldn't let being a single mother be a factor; I know lots of single parents who take responsibility for their finances and debts.

System

A couple of good points by cdhr9203. One: I send letters certified and U.S. Mail. If the employee does not sign for the certified, I know they received it by regular mail. Two: being a single mother shouldn't be a factor. I know we all tend to be sympathetic to some employees' circumstances but we have to remember we're not Social Services. We act on behalf of our employer.

One thing I do to ward this off ahead of time is, when the employee first goes out on FML, I give them a copy of "Your rights" that clearly explains their obligation to pay their portion of the premium. I explain that it's better for them to make premium payments during the leave than to show up in court for non-payment.

A little bit irrevelant; however, I believe this should be a function of the finance department. But, hey. Isn't HR the virtual 'one stop' for everything?

Balloonman1

Screw that, sue her for the full amount of the insurance coverage while she was out, not just the $800.00. Get your ducks lined up, see if you are above or below the small claims court limit, and go file yourself. Pay the extra $35.00 and have her served at her current place of employment. That might teach her to sign for her certified letters. x:D
Then if you win, and she actually owns a house go to the courthouse, place a lien on the house, so when she goes to sell or refi she will have to pay you off to get clear title.
When you win in court buy yourself an ice cream cone to celebrate. Tell your owner that if you actually collect the money, you are taking your husband out to a nice resturant on the companies expense to celebrate. Let them know they are welcome to join you.
My $0.02 worth.
The Balloonman