Do employees accrue vacation while on FMLA?

Understanding the Family and Medical Leave Act (FMLA)

First things first, FMLA allows employees to take up to 12 weeks of leave from work without earning pay but keeping their job. The federal law ensures that qualifying employees can take unpaid, job-protected leave for family or medical reasons without losing their employment benefits.

Purpose of FMLA

The law aims to help your employees to better manage their work and family life by allowing them to take time off for important family and medical reasons. Both men and women can qualify for FMLA leave to:

• Welcome a new baby into their family and care for them within their first year of life
• Welcome a child through adoption or foster care and care for them within their first year in the new family
• Look after a spouse, child, or parent if they are seriously ill
• Take care of themselves if they’re seriously ill and unable to complete their job tasks
• Handle important matters if their spouse, son, daughter, or parent is a military service member on active duty

Also, employees can take a longer break of up to 26 weeks within a year if they need to care for a seriously injured or ill family member in the military.

Eligibility criteria for FMLA leave

For employees to be eligible for FMLA leave, they must work for an employer covered by the FMLA:

• Private employers with 50 or more employees for at least 20 weeks in the current or last year
• Public and government agencies
• Educational agencies at all levels
• Have been employed for at least 12 months (not necessarily consecutively)
• Have worked at least 1,250 hours in the previous 12 months
• Work at a location with 50 or more employees within a 75-mile radius

Now that we’re familiar with how this leave works, let’s see how it differs from traditional time off.

Paid Time Off (PTO) vs. FMLA

Paid time off (PTO) refers to a pool of paid leave that employees can use for various reasons, such as vacation, sick days, or personal time. PTO is a non-mandatory benefit offered by an employer which can be taken by the employee at any time. On the other hand, FMLA is a federal law that guarantees unpaid leave for specific family and medical reasons.

Overview of PTO policies

Your company’s policies will determine how vacation time accrues, such as monthly, annually, or based on hours worked.

Interplay between PTO and FMLA

PTO and FMLA can overlap, especially when employers require or allow employees to use PTO during FMLA leave. For instance, if your employer offers paid leave, you can use it on FMLA leave if it fits your paid leave policies. You may also ask your employee to use their paid time off while on FMLA leave.

If employees use accrued PTO while on FMLA leave, the leave becomes a combination of paid and unpaid.

If the paid leave is used for a reason covered by FMLA, then it is protected by FMLA.

Do employees accrue vacation while on FMLA?

It depends, as the answer hinges on the company’s vacation policy. Some companies allow workers to accumulate paid leave while under FMLA. Most of the time, if an employee is on paid leave, they keep accruing more. But if the worker is on unpaid leave, it pauses.

According to FMLA rules, an employer must treat a worker using paid leave while on FMLA just like it would treat other employees on paid leave, such as regular sick or vacation time. In other words, an employee’s right to benefits during FMLA, excluding group health benefits, is based on the company’s policies when the worker is on other types of leave.

Factors that influence vacation accrual

Vacation accrual depends upon the company’s policy. If employees continue to accrue vacation while on paid leave, the same rule must apply to paid FMLA leave. Conversely, if the policy halts accrual during unpaid leave, an employee would not accrue vacation during unpaid FMLA leave.

Employer-specific policies on vacation and FMLA

Vacation accrual policies concerning FMLA leave can vary widely across companies and states.

Traditional accrual systems

If vacation time accrues based on hours worked, employees on unpaid FMLA leave generally do not work the required number of hours to accrue vacation time.

Fixed annual accrual

If annual vacation is granted upfront, employees on FMLA leave may not see any impact unless they exceed the total leave period specified in their contract.

Impact of state-specific laws on vacation accrual

Some states with paid family leave, such as California and New York, offer additional family leave benefits or stricter labor laws compared to federal regulations. To remain compliant, employers operating in these states must align PTO accrual policies with state and federal guidelines.

Rights and entitlements of employees

Employers and employees should clearly communicate about rights, policies, and expectations surrounding FMLA leave.

Understanding employee rights under FMLA

FMLA protects employees’ jobs during unpaid leave. Employees who take a break due to FMLA can rest easy knowing their jobs will still be there when they return. It must be their current or a similar job with the same pay scale, benefits, and work conditions.

As an employer, you can’t threaten, discriminate, penalize, or dismiss an employee for taking FMLA leave. In addition, employers must continue the group health insurance coverage for an employee on FMLA leave, just as if they were still on the job.

Communicating with HR regarding PTO and FMLA

Every company has different policies, so your employees should consult HR to understand what FMLA is and how it will impact vacation accrual. HR professionals can also clarify how PTO policies apply, whether unused PTO can supplement their leave, and other company-specific policies.