How long can an employee be on LTD before termination?

Employers are cautioned not to automatically terminate employment solely because an employee has exhausted his or her leave entitlement under the Family and Medical Leave Act (FMLA) or another employer-provided leave or because the employee has become eligible for long-term disability (LTD) or Social Security Disability Insurance (SSDI). Policies or practices that automatically terminate employment due to extended medical absences may violate the employers' reasonable accommodation obligations under the Americans with Disabilities Act (ADA).

The ADA considers the use of extended leave beyond that mandated by the FMLA or even employer policy to be a form of reasonable accommodation. Under the ADA, the employer has a duty to participate in a good-faith interactive process when receiving notice of the employee's disability and a request for accommodation. If an employer simply terminates employment because the employee is not on approved leave or by policy has no leave available, the employer has failed to engage in the interactive process to determine if extended leave is a reasonable accommodation, thus violating the employee's ADA rights. Employers should be prepared to evaluate each employee's situation on a case-by-case basis and defend with evidence of undue hardship any decision that denies an extension of leave. What may be unreasonable in one situation may be reasonable in another.

The Equal Employment Opportunity Commission provides guidance for employers on granting leave as a reasonable accommodation.