Extended leaves of absence — whether for medical, parental, military, personal or educational reasons — are something HR professionals should think about proactively. Finding the balance between legal requirements, managing costs and taking care of employees can be challenging.
This guide aims to help HR teams by breaking down the key legal obligations, practical aspects and communication strategies to consider when managing leave benefits. Having this knowledge will pay dividends in the form of a healthier, more engaged workforce.
Why employees take extended leave
An extended leave of absence covers a period that lasts longer than what the company provides in its time-off guidelines. They can be voluntary or mandatory and may be taken for various reasons, each carrying different implications for benefits continuity and compliance. Common reasons for extended leave include:
- Medical: An employee may take leave to recover from injury, illness or surgery. According to the Integrated Benefits Institute, poor health costs employers $530 billion per year and leads to 141 million days worth of lost productivity. This cost highlights the operational and financial benefits of allowing extended medical leaves in the workforce.
- Family: Maternity leave is perhaps one of the most common types of extended leave as new mothers care for a newborn. But other types of family leave can be just as necessary, such as caring for a terminally ill family member.
- Military training or deployment: An employee may request leave to render military service, which is covered by the Uniformed Services Employment and Reemployment Rights Act.
- Mental health: A worker experiencing burnout, depression or a similar mental health condition might request leave to manage their symptoms. Many types of mental health conditions are covered under FMLA if the condition warrants inpatient care or ongoing treatment by a healthcare provider.
- Education: About 60% of adults who went to school without finishing their degree consider returning. Your employee may request a leave of absence or part-time work so that they can focus on returning to school for certifications or degree programs.
- Sabbatical: Finally, an employee may request a longer period of unpaid time off as a sabbatical to travel, rest or for various other personal reasons.
Core compliance requirements for extended leaves
How can HR and benefits managers ensure their employer remains compliant with government guidelines when workers take long breaks? The following legal foundations apply.
FMLA compliance
The Family and Medical Leave Act (FMLA) provides up to 12 weeks of job-protected, unpaid leave, while preserving group health coverage under the same terms. It protects extended leaves requested due to a serious illness, child or family care, or in relation to a family member's military service.
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Eligible staff are those who've been with the enterprise for at least 12 months, worked at a location within 75 miles of where the employer has at least 50 team members and rendered at least 1,250 hours during the 12 months before their FMLA leave begins. They may use 12 workweeks under FMLA leave within a 12-month period and up to 26 workweeks to be a military caregiver within the same time frame.
To ensure the brand is compliant with the law, HR managers should maintain thorough FMLA documentation and explain eligibility and continuation of benefits during the protected leave.
COBRA and non-FMLA leave
If an employee's leave request falls outside of FMLA or goes beyond its duration, the Consolidated Omnibus Budget Reconciliation Act (COBRA) may apply. COBRA gives workers the option to continue their employer-sponsored health coverage benefits for up to 36 months, but at their own expense.
This applies not just to life events but also to situations involving a reduction in work hours and voluntary or involuntary job loss. Employers should explain the cost implications to affected employees clearly and streamline notification processes. The Department of Labor provides compliance assistance for them and benefits managers to ensure adherence.
Related: Employee leave management continues to be a struggle for many employers
ADA leave as a reasonable accommodation
When the team member requests extended leave due to a medical condition that qualifies as a disability, the Americans With Disabilities Act (ADA) may apply to verify that health insurance coverage continues. This goes for ADA-qualified workers no longer covered under FMLA or who were never covered by it.
Employers and benefits managers should speak with the employee before providing this accommodation to see if it is possible for them to work without having to avail a leave. After this period, they should be able to return to their original position.
Managing benefits continuation during extended leave
Are staff entitled to continued health care coverage when they are on leave? Yes. Employers should maintain this benefit during an FMLA leave. After FMLA, COBRA, ADA or state-specific laws may take effect.
This is where many employers often stumble, so it's important to include insurance continuation information in the company's leave policies and educate workers on their rights early on. Must-have records include:
- FMLA eligibility and designation notices
- COBRA forms and payment records
- Medical certifications
- Premium contribution schedules and logs
- ADA accommodation discussions
Ancillary benefits such as life, disability, or retirement will depend on the benefit provider's rules and the type of leave availed. Many plans require that the employee remain active to continue coverage, while others allow conversion or portability. Employers may opt to continue benefits in exchange for shortened office hours. Having a benefits decision matrix can help HR managers see which can be converted and which should be suspended during the leave period.
Communicating benefits and keeping documentation
There appears to be a gap in terms of communicating leave benefits. According to BusinessSolver's 2023 Benefits Insights Report, 86% of employees do not understand what their benefits are. How can HR teams ensure readiness and compliance?
The answer is documentation. Benefits and changes across various leave types should be on templates and standardized emails, so all HR professionals and employers must do is update and disseminate. HR managers should be trained to manage risk through reinforcing communication and preparing a list of frequently asked questions for uniform engagement.
Key questions to answer for employees include:
- Which benefits will remain active while on leave?
- Who will be responsible for paying the insurance premiums?
- When will benefits end or change?
- What are the exceptions to benefits availability?
- How will benefits be reinstated after the leave?
Staying ahead and compliant
Proper planning, systems and communication are key elements to navigating benefits compliance during extended leaves successfully. HR professionals can enhance workers' experiences and reduce compliance risks by staying up to date with knowledge and streamlining documentation. This protects the organization while building a resilient and loyal workforce.
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