Information on Employee Leave of Absence

An employee might take paid or unpaid leave, for medical, personal, workers compensation or other reasons. As the employer, you are likely concerned about the following:

When he or she may return to his or her position
How to handle paychecks
How to handle the group benefits, etc.

We feel it is better to have thought over these questions and have some policies and procedures in place before they are needed. You may wish to write-up your company's position on when, if, and under what circumstances an employee may be granted "Leave." This could address if the employee can remain on the benefits plan, and who will pay the premium. [When an employee is terminated, COBRA or NC State Continuation may be offered and the employee is responsible for the premium on the health coverage.]

To replace income while an employee is sick or injured, disability income insurance is available to most groups. It typically pays a portion of an employee's wages for a fixed period of time. A disability policy (group or individual) that replaces lost income can help an employee pay for her/his portion of the benefits premium.

To protect you as an employer, you may wish to look into Employee Benefits Liability Insurance. It is available to some businesses that qualify and can assist you if your company is charged with wrongfully removing an employee from the benefits plan, failure to offer Continuation (where applicable), etc. It is important to note, however, that there can be large penalties regarding employee benefits when an error is made. We suggest that you discuss any action with your company's attorney if a situation arises.

While some of this information is general, we hope that it gives you some guidance. Please consider this information and contact us if you have other questions.