Do Employees Accrue Vacation During FMLA Leave?

Understanding whether employees accrue vacation while on FMLA is important for both employers and employees. FMLA or the Family and Medical Leave Act provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year.

Employees may use this leave to take care of their own or their family member’s serious health condition. However, there are certain rules and regulations that determine whether employees continue to accrue vacation time while on FMLA leave.

In this article, we will discuss this issue in detail.

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What is FMLA?

The Family and Medical Leave Act (FMLA) is a United States labor law that provides eligible employees with up to 12 weeks of unpaid leave per year for qualified medical and family reasons. This law was signed into existence in 1993, and it applies to all public agencies and private-sector employers with more than 50 employees within a 75-mile radius.

Some of the most common reasons that qualify for FMLA leave include the birth or adoption of a child, serious health conditions that make them unable to perform their job, and caring for a family member with a serious health condition. Additionally, military personnel who need time off for service-related ailments may also qualify.

While employees are on FMLA leave, they maintain their health care benefits and the right to return to their original job or a comparable job at the end of their leave.

Do employees accrue vacation while on FMLA?

How Does PTO Accrual Work?

PTO, or paid time off, is time off from work that an employee can take while still receiving their regular pay. PTO includes vacation days, sick days, personal days, and holidays.

While some companies offer a lump sum of PTO at the beginning of the year, others use an accrual system.

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Accrual systems allow employees to accumulate PTO over time. For example, an employer might give an employee 80 PTO hours (the equivalent of 10 days) per year, but rather than giving all 80 hours upfront, the hours are earned gradually throughout the year.

This means employees start with zero hours of PTO and earn a set amount (e.g. 6.67 hours per month) until they reach their maximum.

So, do employees accrue vacation while on FMLA? The answer is, it depends on company policy.

If a company has a policy of continuing the accrual of PTO during FMLA leave, then an employee will continue to earn PTO during their leave. However, if a company has a policy of putting all PTO accruals on hold during an employee’s leave, then the employee will not earn any PTO during their leave.

It’s important for employers and employees alike to understand their company’s policies regarding PTO accrual during FMLA leave. Employers should have clear and consistent policies in place to avoid misunderstandings or disputes, while employees should fully understand their entitlements during and after their leave.

Do Employees Accrue Vacation During FMLA Leave?

When employees take FMLA leave, it’s natural for them to wonder whether they will continue to earn vacation time while they are away from work.

The answer to this question depends on the employer’s policies. The Family and Medical Leave Act (FMLA) requires employers to offer up to 12 weeks of leave to eligible employees to attend to serious health conditions, family responsibilities, or the birth and care of a child.

However, the FMLA does not have any requirements related to vacation or paid time off (PTO).

Although FMLA leave is unpaid, some employers allow workers to substitute PTO or use it concurrently with their leave. In these cases, employees can continue to accrue PTO, but that time will be reduced by the amount of FMLA leave they take.

Is FMLA Paid or Unpaid?

As mentioned earlier, FMLA leave is unpaid. Employers are not required to pay employees during their FMLA leave period.

However, some organizations may offer to let workers to use any available PTO to cover their unpaid leave. In some cases, employees may also be eligible to receive disability or workers’ compensation benefits while they are on FMLA leave.

Can Employers Choose to Allow PTO to Accrue?

Employers can choose whether or not to allow PTO to accrue during FMLA leave. The FMLA does not require employers to maintain an employee’s benefits, including PTO, during their absence.

However, some employers may allow their workers to continue accruing PTO while they are on FMLA leave.

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It’s also worth mentioning that employers can choose to provide additional benefits to their employees beyond what is required by law. In some cases, employers may provide paid FMLA leave or allow employees to use their sick leave, vacation time, or other paid leave to cover their FMLA leave.

What Happens to PTO if It Does Not Accrue During FMLA Leave?

If an employer does not allow PTO to accrue during an employee’s FMLA leave, the employee will not receive the hours of PTO that they would have earned if they had been working. However, the FMLA does require that employers maintain employee benefits during their leave period.

This means that if an employee had earned PTO prior to taking FMLA leave, they would return from their leave with that same amount of PTO. Employers may also be required to continue paying for health or other insurance benefits during FMLA leave.

Can Employees Use PTO Toward FMLA Leave?

Employees may use accrued paid vacation leave, paid sick leave or family leave for some or all of the FMLA leave period. However, employers are not required to let employees accrue PTO while on FMLA leave.

This means that if an employee is taking FMLA leave, they will not earn PTO hours during that period.

Accrued time off is different from lump-sum PTO in that it is earned over time instead of all at once. Companies generally cap the number of PTO hours that an employee can accrue in a year.

It is worth noting that while employers are not required to let employees accrue PTO while on FMLA leave, they must still maintain any benefits that the employee would have earned during the leave period. This means that if an employee is eligible for benefits such as health insurance or retirement contributions, their employer must continue to provide those benefits while they are on FMLA leave.

Do Employees Accrue PTO for Other Kinds of Absences?

When it comes to Paid Time Off (PTO), employees often wonder whether they accrue time off for other kinds of absences, such as personal or sick leaves. In general, accrued time off is different from lump-sum PTO, where a worker receives all their PTO at once.

Workers earn PTO hours each week, pay period, or month. However, unlike other leaves, such as personal or sick leave, the Family and Medical Leave Act (FMLA) does not require employers to allow PTO to accrue while an employee is on FMLA leave.

Although the FMLA does not require PTO accrual, it still requires that employers maintain any benefits the employee would have earned during their leave period. This means that employees are still entitled to any benefits they would have earned, including any non-seniority bonuses, regular raises, or increases they would have received, had they not been on leave.

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Moreover, employers may permit or require an employee to use their accrued paid vacation leave, paid sick leave, or family leave for some or all of the FMLA leave period. Employees can accrue their PTO on an hourly, weekly, bi-weekly, monthly, quarterly, annual, or per pay-period basis.

An employee’s PTO accrual also depends on the length of time they have spent at an organization. Companies reward loyalty by increasing the amount of PTO an employee can accrue over a period of time.

Accruing PTO While on FMLA: Tips

Employers may or may not permit employees to accrue PTO while on FMLA leave. However, if it is allowed in the organization, here are some tips to ensure accurate records of PTO accrual during FMLA leave.

How to Ensure Accurate Records of PTO Accrual During FMLA Leave

Firstly, employers should create a clear policy outlining their rules for both PTO accrual and FMLA leave. The rules surrounding PTO accrual during FMLA leave must be consistent with any policy regarding PTO accrual during paid leave.

Employers should also require employees to submit documentation supporting any claim that they have accrued PTO during FMLA leave. This ensures that the records are accurate and that employees cannot falsely claim PTO accrual.

It is also advisable for employers to keep track of the exact days that an employee is on FMLA leave to accurately calculate PTO accrual while on such leave.
Finally, employers should train their human resources department or any staff in charge of payroll to ensure they can accurately track and account for PTO accrual during any form of leave.

How to Handle Disputes Over Accrued PTO During FMLA Leave

Employers must be prepared to handle disputes over accrued PTO during FMLA leave. One way to prevent disputes is to clearly outline the rules for PTO accrual during FMLA leave in the policy.

Any disputes should be handled through an internal dispute resolution process.
If no internal process is available or if the internal dispute resolution process is not successful, the employee can file a complaint with the US Department of Labor’s Wage and Hour Division.

Employers may also seek legal assistance from a workers’ compensation lawyer to help resolve disputes.

Conclusion

It is important for employers to understand the regulations surrounding PTO accrual during a leave of absence, particularly during FMLA leave. While the FMLA does not require employers to allow PTO to accrue during this time, any benefits an employee would have earned must still be maintained.

It is important for employers to create a clear policy outlining their rules surrounding PTO accrual and FMLA leave, and to consistently apply these rules to avoid any legal issues. Employers can require employees to use up their accrued PTO while on FMLA, but cannot require them to use it if they are on paid FMLA.

Understanding these regulations will help employers maintain compliance with labor laws and promote a positive working environment for their employees.

References

Lora Turner
 

Lora Turner is an Experienced HR professional worked with the large organizations and holding 15 years of experience dealing with employee benefits. She holds expertise in simplifying the leave for the employee benefits. Contact us at: [email protected]