How FMLA leave affects (or doesn’t affect) holiday pay
It might be October, but holiday decorations are already on retail shelves. While holidays creep into stores earlier and earlier, they might even show up at work, not as decorations, but as questions about holiday pay, including for employees on leave under the federal Family and Medical Leave Act (FMLA).
This begs questions for these two scenarios:
- Do employees get holiday pay if they are on FMLA leave?
- What if they don’t work the day before or after the holiday, as many company policies require?
The FMLA regulations state:
“An employee's entitlement to benefits other than group health benefits during a period of FMLA leave (e.g., holiday pay) is to be determined by the employer's established policy for providing such benefits when the employee is on other forms of leave (paid or unpaid, as appropriate).”
Reference: 29 CFR 825.209(h)
Therefore, whether employees receive holiday pay (or not) while on FMLA leave is up to company policies.
Workplace policies rule
Many company policies require employees to be at work the day before and after the holiday to receive holiday pay.
In that situation, if an employee is not at work the day before and after the holiday because they are on FMLA leave, they would not be entitled to holiday pay – unless the policy specifically says they do.
Remember, the FMLA rarely governs employee pay; it provides for job-protected, unpaid leave.
Such a policy doesn’t always include how the FMLA leave is treated, but that doesn’t mean it can’t.
If a company has no related policy, it will need to see how it addressed such situations in the past. If a company never had to handle such a situation, it would need to figure out how to proceed., being careful not to set an unwanted precedent.
Now’s a good time to plan
For employers that would like to craft a holiday pay policy, now might be a good time to do so. A new policy could indicate whether employees on FMLA leave would be entitled to holiday pay or not. That way, employees will know what to expect before the first snowflakes begin to fall.
Knowledgeable legal counsel should review all policies, so getting a head start is suggested.
Employers that already have holiday pay policies might want to review them. If they don’t include information about the pay during FMLA leave, perhaps it’s time to add such information.
Key to remember: Employees on FMLA leave are entitled to holiday pay based on company policy, not on the FMLA statute or regulations.