FMLA leave can impact perfect attendance bonus
Being a dependable person is a good quality to have. This is why some employers offer employees a bonus for those with perfect attendance — to encourage this behavior.
Whether a monetary bonus or an extra day off is given, this type of policy offers positive reinforcement to workers who make their job a priority, no matter how comfortable their bed feels in the morning.
Does FMLA leave affect attendance bonuses?
But what happens when an employee simply can’t show up for work because of a serious health condition under the Family and Medical Leave Act (FMLA)?
While the FMLA provides job protection to an employee who needs to miss work for a qualifying reason, it does not guarantee that the days missed won’t affect a person’s bonus. This includes a bonus given for perfect attendance.
The FMLA regulations at 29 C.F.R 825.215 state:
If a bonus or other payment is based on the achievement of a specified goal such as hours worked, products sold or perfect attendance, and the employee has not met the goal due to FMLA leave, then the payment may be denied, unless otherwise paid to employees on an equivalent leave status for a reason that does not qualify as FMLA leave.
A key phrase here is “equivalent leave.” FMLA leave is generally unpaid, so an employer may count unpaid time off against an employee’s perfect attendance record if it treats employees who are not on FMLA leave the same way.
An employer might, for example, have a policy allowing employees to call in and miss four shifts in six months without risking termination. If this unpaid absence counts against the employee’s perfect attendance bonus, the employer may also deny the bonus if the employee is on FMLA leave.
How does vacation or PTO apply?
If, however, the employee uses vacation time or paid time off while on FMLA leave, the situation might change. An employer might decide not to disqualify employees who are on vacation from the perfect attendance bonus, as this might discourage workers from taking a needed break from their jobs.
In this case, the employer may not disqualify a person on FMLA leave from the attendance bonus if that person is taking vacation at the same time as FMLA leave. That employee must be treated in the same manner as a worker who is strictly on vacation.
Be fair and consistent when it comes to attendance bonuses. Look at how employees who are not on FMLA leave are treated for guidance in handling employees who are on FMLA leave.
Key to remember: Giving an employee a bonus for consistently showing up at work is different than reprimanding an employee who is absent. While an employee may not be eligible for a perfect attendance bonus if the employee takes FMLA leave, that employee still has job protection.