Family Leave, Short-Term Disability and Unemployment Compensation - Complicated to Navigate Alone
|FMLA - Job Security - No Money|
The Family and Medical Leave Act is designed to insure that employees who are forced to take time off from work due to a health crisis will not suffer the loss of their employment. The FMLA is all about JOB SECURITY.
Click Here for a detailed description of the Family and Medical Leave Act.
|STD Insurance - Money Not Job Security|
The term "Short-Term Disability" refers to an insurance policy purchased by employers to provide income subsidy payments to employees who are out of work due to a serious health condition. A Short-Term Disability insurance policy typically provides benefits equal to 2/3rds of an an employees base salary or weekly earnings for up to 26 weeks.
Short-Term Disability insurance policies are issued by insurance companies such as Hartford, State Farm, Cigna, Prudential, etc. These insurance companies are not employers of the employees who require benefits. Consequently, these insurance policies have nothing to do with job security. They simply provide income subsidies.
So, FMLA provides unpaid leave and job security, while Short-Term Disability policies provide payment while one is out on leave, but no job security.
FMLA and Short-Term Disability policies are completely separate animals, but often are both in play when an employee needs to miss work due to personal illness or injury.
If you require FMLA Leave, you will be eligible for Short-Term Disability insurance payments. Under these circumstances, you will be paid Short-Term Disability benefits for the entire 12 weeks that you are out on FMLA leave.
One does not have to be employed to receive Short-Term Disability payments. How can that be, and how do such circumstances arise?
|You Can Get UC Benefits if Out|
on Sick Leave Without Pay
Can I Get Unemployment Benefits if I am Out on Sick Leave?
In many situations, the answer is: Yes. Click Here to learn more.
These are thorny issues, and it is best to consult with counsel prior to starting stress-related FMLA leave to map out a strategy.
NOTE: Sometimes employees seeking Short-Term Disability benefits due to job-related stress apply, or are encouraged to apply for, Workers' Compensation benefits. This is usually a mistake. Such claims are often denied by workers' compensation carriers.
Click Here for a comprehensive discussion on the relationship between STD, Workers' Compensation, FMLA leave and Long-Term Disability insurance payments.
John A. Gallagher is an employment lawyer who represents employees in Pennsylvania.
Click Here if you have questions about any aspect of employment law, from wrongful termination to wage and overtime claims, from discrimination and retaliation laws to Family and Medical Leave, from worker misclassification issues to non-compete agreements…
Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, Independent Contractor/Self-Employment issues, Referee Hearings, severance issues…
Click Here to e-mail John directly.
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