Who Is Responsible to Pay for Employee Health Insurance During Family Medical Leave of Absence?

Childbirth is an FMLA-qualifying event.

The federal Family and Medical Leave Act allows employees time to deal with life-changing events such as the birth of a child or a serious illness without fear of losing their job.

Rule

During an FMLA-qualifying leave, employers must provide the same health insurance coverage as if the employee never left. In many cases, the employer must pay a portion along with the employee, according to the Department of Labor.

FMLA

The Family and Medical Leave Act act states that covered employers must give employees 12 weeks of paid or unpaid leave during any 12-month period after the birth or adoption of their baby, or if the employee or immediate family member has a serious health condition.

Collecting Payment

If the employee pays a portion of the health insurance, employers can collect that money via payment from the employee, or when agreed upon, employers can take the payment from wages.

COBRA

FMLA does not qualify for Consolidated Omnibus Budget Reconciliation Act (COBRA) health insurance coverage. It is not a COBRA-qualifying event, according to the Department of Labor.

FMLA to COBRA

COBRA coverage comes into effect when an individual loses or quits a job (the exception is termination because of gross misconduct). If someone on FMLA decides he won't come back to work, the rules of health insurance switch to COBRA rules, where the employee pays the entire premium.

References

• Department of Labor: FAQs For Employees About COBRA Continuation Health Coverage
• Department of Labor: Wage and Hour Division