Does an employee on FMLA leave continue to accrue paid leave?

An employer's policy governs whether an employee on Family and Medical Leave Act (FMLA) leave continues to accrue paid leave. Often, an employer's policy states that when an employee is on paid leave, accrual continues, but when an employee is on unpaid status, accrual ceases. In compliance with §825.209(h) of the FMLA regulations, an employer must treat the employee using paid leave while on FMLA leave the same way it treats employees on other types of paid leave (such as regular sick or vacation leave). Specifically, the regulations state: "An employee's entitlement to benefits other than group health benefits during a period of FMLA leave (e.g., holiday pay) is to be determined by the employer's established policy for providing such benefits when the employee is on other forms of leave (paid or unpaid, as appropriate)."

State family leave laws may offer greater benefits than the federal regulations require. As with all policies, legal counsel review is recommended to ensure consistency and legal compliance.