Connecticut Administrative Code
Title 31 - Labor
51rr - Family and Medical Leave for School Paraprofessionals
Section 31-51rr-26 - Employer recovery of benefit costs (29 CFR Section 825.213)
Current through December 12, 2024
(a) In addition to the circumstances discussed in section 31-51rr-25(b) of the Regulations of Connecticut State Agencies, an employer may recover its share of health plan premiums during a period of unpaid FMLA leave from an employee if the employee fails to return to work after the employee's FMLA leave entitlement has been exhausted or expires, unless the reason the employee does not return is due to:
(b) Under some circumstances an employer may elect to maintain other benefits, such as life insurance or disability insurance, by paying the employee's share of premiums during periods of unpaid FMLA leave. For example, to ensure the employer can meet its responsibilities to provide equivalent benefits to the employee upon return from unpaid FMLA leave, it may be necessary that premiums be paid continuously to avoid a lapse of coverage. If the employer elects to maintain such benefits during the leave, at the conclusion of leave, the employer is entitled to recover only the costs incurred for paying the employee's share of any premiums whether or not the employee returns to work.
(c) An employee who returns to work for at least thirty (30) calendar days is considered to have "returned" to work. An employee who transfers directly from taking FMLA leave to retirement, or who retires during the first thirty (30) days after the employee returns to work, is deemed to have returned to work.
(d) When an employee elects or an employer requires paid leave to be substituted for FMLA leave, the employer may not recover its share of health insurance or other non-health benefit premiums for any period of FMLA leave covered by paid leave. Because paid leave provided under a plan covering temporary disabilities, including workers' compensation, is not unpaid, recovery of health insurance premiums does not apply to such paid leave.
(e) The amount that self-insured employers may recover is limited to only the employer's share of allowable "premiums" as would be calculated under COBRA, excluding the two (2) percent fee for administrative costs.
(f) When an employee fails to return to work, any health and non-health benefit premiums which this section of the regulations permits an employer to recover are a debt owed by the non-returning employee to the employer. The existence of this debt caused by the employee's failure to return to work does not alter the employer's responsibilities for health benefit coverage and, under a self-insurance plan, payment of claims incurred during the period of FMLA leave. To the extent recovery is allowed, the employer may recover the costs through deduction from any sums due to the employee, such as unpaid wages, vacation pay, and profit sharing, provided such deductions do not otherwise violate applicable Federal or State wage payment or other laws. Alternatively, the employer may initiate legal action against the employee to recover such costs.