HR Tip of the Week

HR Tip of the Week

FMLA Benefits

Can an employer cancel an employee’s health benefits while on FMLA for failing to make a premium payment? Legally, “yes” if the employee has not made a payment within the given 30-day grace period. However, before cancelling and notifying the insurance carrier, the employer may want to continue the plan and recover the premiums from the employee upon return from FMLA due to the administrative burden and employee morale. If the employee does not return, the employer may have recourse to recover premiums from the employee.

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