We usually like to share problems or ideas with our clients on certain issues that come up, and then offer ideas on how to handle. In the last year, we've had several clients who have an employee out on short term disability and the illness or recovery period extends beyond short term and now becomes a long term disability. In the meantime, they may or may not be collecting the employees share of the health insurance premium.
It is usually at the 6 month mark where we get a phone call with the question on what to do. First, the employer needs to understand clearly what is going on with the employee and have medical documentation on whether they are cleared to return to work or not, with continued medical follow ups.
At that point the employer needs to make a decision on whether the "position" needs to be filled by someone else. Then if the employees share of premiums are still due, they are entitled to address and collect.
Rather then waiting till this event occurs, it is best to have a written plan in place that addresses all of these issues. There are many items that are at the employers discretion.
For example, the employer can determine how long they will continue to pay their portion of the health insurance premiums. We have employers who clearly state 8 weeks, while others likes to follow FLMI guidelines and opt for 12 weeks.
Bottom line is that a plan needs to be in writing that clearly states how long the employer will continue to pay their share of health insurance premiums while out on any type of leave, not just disability leave. A method of payment for the employee should also be outlined so that everyone understands their responsibility while they are out of work. Again, having a written policy will allow you to review with employee prior to the leave of absence.
As part of our Human Resource Services, we can help. It can blossom into a very complicated and expensive event. SO, plan ahead. Call Bill or Vanessa for help.
