When On Paid Family Leave, Do You Accrue Paid Time Off?

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The Family and Medical Leave Act (FMLA) is a federal law that mandates employers to provide job-protected unpaid time off for qualifying reasons. Employees can receive up to 12 weeks per year for parental leave. However, it is the employee’s decision whether or not they continue to earn PTO while on FMLA leave or vacation. The FMLA only requires unpaid leave, but allows employees to elect or require the use of accrued paid vacation leave, paid sick leave, or family leave.

The FMLA does not require employers to allow PTO to accrue while an employee is on FMLA leave. However, any benefits the employee would have earned during the leave period must be used. When FMLA and PTO run concurrently, employees using their accrued PTO can receive pay during their unpaid FMLA leave. This income replacement can help employees face medical or family-related challenges.

If PTO isn’t accruing while an employee is not working, they lose out on one PTO day per year. Understanding how PTO works during FMLA can be overwhelming, but it is important to know your rights as an employee. All employees on paid leave, such as vacation leave, sick leave, or personal days, will continue to accrue paid leave benefits provided by the company. Employees on unpaid leave will not accrue any benefits during the period they are on FMLA.

Employers may require employees to take up to two weeks of unused vacation leave and/or PTO before receiving Paid Family Leave (PFL) benefits. PTO accruing during FMLA is up to the company policy, and employees can decide whether accrual continues while an employee is on paid leave or not. When FMLA and PTO run concurrently, employees using their accrued PTO can receive pay during their unpaid FMLA leave.

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📹 Is an employee is still eligible to cash out their PTO after being unable to return from FMLA leave?

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Should Employees Use PTO While On FMLA
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Should Employees Use PTO While On FMLA?

Under the Family and Medical Leave Act (FMLA), employees are entitled to 12 weeks of unpaid leave, during which they may also utilize their accrued paid time off (PTO). Employers have the discretion to require the use of PTO during FMLA leave and to determine whether employees may continue to accrue PTO while on such leave. It is advisable for employers to integrate FMLA leave with other leave types to prevent stacking. While FMLA does not mandate pay, it allows employees to opt for using their paid leave concurrently with their FMLA entitlement.

If employees receive concurrent disability benefits, employers typically cannot compel them to use PTO. Regulations specify that time worked during a light-duty role does not count against FMLA leave. Employers may structure their paid leave policies under federal guidelines and must communicate employees' rights regarding PTO usage during FMLA leave. Many choose to require employees to exhaust their available PTO before their unpaid FMLA leave.

FMLA ensures that employees can elect to use paid leave for the duration of their leave, and organizations must define their policies clearly to manage PTO in conjunction with FMLA leave efficiently. Ultimately, while FMLA provides the option for unpaid leave, employers hold the authority to require PTO utilization.

How Does Unlimited PTO Work With Parental Leave
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How Does Unlimited PTO Work With Parental Leave?

Employers offering unlimited Paid Time Off (PTO) typically adopt three approaches to parental leave: not providing separate parental leave, creating a specific limited-duration parental leave policy, or extending unlimited parental leave like their vacation policy.

The first option, which offers no distinct parental leave, can create complications. Employees may be unable to use unlimited PTO for Family and Medical Leave Act (FMLA)-qualifying absences if the policy restricts time off—potentially limiting usage to a set number of consecutive days. It’s essential for companies to draft clear policies that detail how unlimited PTO interacts with FMLA and other wage replacement benefits.

In contrast, some companies choose to implement a separate parental leave policy, allowing limited paid time off for new parents. This approach provides more structure and clarity for employees regarding their entitlements during critical life events.

The most straightforward method involves extending unlimited PTO to cover parental leave. This enables new parents to take as much time as needed without fearing job security, fostering an environment of flexibility. However, if this option is adopted, employers must ensure compliance with FMLA obligations to avoid litigation risks related to discrimination.

As the trend of unlimited PTO gains popularity, it becomes crucial for organizations to thoughtfully create and communicate their leave policies, ensuring they balance employee needs while adhering to legal requirements.

Why Use FMLA Instead Of Sick Leave
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Why Use FMLA Instead Of Sick Leave?

The Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) provide job protection for employees availing Disability Insurance or Paid Family Leave benefits when they take medical leave for themselves, care for a seriously ill family member, or bond with a new child. FMLA allows eligible employees to take up to 12 workweeks of unpaid leave per year while maintaining group health benefits as if they were still working. It’s essential to designate an employee's absence as FMLA leave when appropriate, as failure to do so could result in loss of job protection.

FMLA differs from paid sick leave, which is compensated time off for illness, and employees can choose to use sick leave instead of FMLA leave. However, this choice might impact FMLA protections. Employers may have policies that require concurrent use of paid leave with FMLA.

FMLA also entitles eligible employees to job protection during family and medical leave, ensuring they cannot be terminated for excessive sick leave use or unpaid leave beyond their sick leave. It’s crucial for employees to understand the nuances of leave policies, including when they can substitute accrued paid leave for unpaid FMLA leave. Overall, FMLA acts as a safeguard for employees needing to take necessary medical or family leave.

Does An Employee On FMLA Continue To Accrue Paid Leave
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Does An Employee On FMLA Continue To Accrue Paid Leave?

Whether an employee on FMLA leave continues to accrue paid leave depends on the employer's policy. Typically, accrual proceeds when the leave is paid, but it ceases during unpaid leave. Under FMLA regulations (§825. 209 (h)), employers must treat employees using paid leave during FMLA in the same way as those on other forms of leave. Employees may use paid leave concurrently with FMLA leave if the reason for FMLA is covered by the employer's paid leave policy.

Employers have the discretion to decide if PTO continues to accrue while an employee is on FMLA leave, but the FMLA does not mandate this accrual. However, any benefits the employee would have earned must still be maintained, provided they continue to pay their share of premiums during the leave period. Employers can require employees to use accrued paid leave before taking unpaid FMLA leave, and employees must be restored to a similar position upon their return.

If sick leave or vacation leave runs concurrently with FMLA, companies may decide to allow additional leave to accrue during this period. Overall, accrued benefits are determined by the employer's policy and vary by organization. Employees on FMLA maintain rights to pay increases and bonuses comparable to those on other types of leave.

Do I Accrue Vacation While On Leave
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Do I Accrue Vacation While On Leave?

An employer's policy dictates whether an employee on Family and Medical Leave Act (FMLA) leave continues to accrue paid time off (PTO). Generally, when on paid leave, accrual typically continues; however, it stops when on unpaid leave. For legally protected leave, vacation accrual depends on the employer's vacation policy, ensuring the employee is treated fairly compared to others. Each company's decision varies regarding whether employees accrue PTO while on medical or vacation leave.

Generally, rank-and-file employees may accrue 7 to 15 hours per month based on service length, and managers/supervisors may accumulate 7 to 16 hours per month. While it may seem unusual to earn vacation during a leave, this practice aligns with certain employer policies. In cases of unpaid leave, like workers' compensation, accrual generally does not continue. Additionally, policy guidelines clarify that employees using sick or vacation leave concurrently with FMLA leave may continue to accrue benefits.

Ultimately, whether vacation leave is affected during maternity or parental leave also hinges on company-specific policies and legal standards. Employees in some regions, like Ontario, maintain vacation accrual even while on leave, showcasing varying practices based on location and policy.

Do You Accrue Leave While On FMLA Federal Employees
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Do You Accrue Leave While On FMLA Federal Employees?

Employees may experience reductions in their biweekly leave accruals for annual and sick leave due to unpaid time off, such as Leave Without Pay (LWOP) or Absence Without Leave (AWOL), particularly under the Family and Medical Leave Act (FMLA). If an employee takes a full pay period (80 hours) of LWOP, their leave accruals for that period will be lost. While most federal employees are covered by the FMLA, this summary focuses on Title II, overseen by the Office of Personnel Management (OPM).

Eligible employees can take up to 12 workweeks of unpaid FMLA leave during a 12-month period due to serious health conditions. Additionally, they may utilize paid parental leave (PPL), distinct from accrued sick or annual leave, during the year following a qualifying birth. Employers must treat FMLA leave taken with paid leave similarly to other paid leaves. Employees are allowed intermittent leave or reduced work hours for medical necessity. Leave continues accruing whenever the employee is in pay status, albeit reductions may occur during LWOP.

Holidays during FMLA leave do not count against the 12-week allowance. Though FMLA mainly provides unpaid leave, employees may opt to use accrued paid leave. The FMLA does not mandate the use of accrued leave before PPL. Overall, employees should understand these implications on leave accruals and benefits during FMLA-related absences.

How Does FMLA Accrual Work
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How Does FMLA Accrual Work?

The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 workweeks of unpaid leave per year for specific family and medical reasons. Employees do not accrue FMLA leave at an hourly rate; instead, their leave entitlement can be converted from workweeks to hours for easy tracking. Employers determine whether paid leave accrual continues during FMLA. Generally, accrual persists during paid leave but halts during unpaid leave.

FMLA regulations mandate job protection for eligible employees, ensuring they can take time off for various reasons, including bonding with a new child or recovering from illness. Employers may require employees to exhaust accrued paid time off (PTO) while on FMLA leave, but they aren’t required to allow PTO accrual during the leave.

Employees need to meet certain criteria, such as having completed 12 months of qualifying service, to be eligible for FMLA benefits. The regulations permit employers to calculate FMLA leave usage using one of four methods within a 12-month period.

Each parent-employee has an independent right to 12 weeks of FMLA leave in a year based on a child's birth or placement. Importantly, during FMLA leave, employees must be treated similarly to those on other types of leave of absence, adhering to the employer's personnel policies. Ultimately, whether PTO accrual continues during FMLA depends on the employer’s policies.

Do You Stop Accruing PTO On FMLA
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Do You Stop Accruing PTO On FMLA?

An employee on FMLA leave must be treated equally to those on similar unpaid leaves concerning benefits like sick and vacation leave. The Family and Medical Leave Act (FMLA) mandates employers provide job-protected unpaid leave for eligible reasons, specifically allowing up to 12 weeks a year. Employers typically maintain policies that permit accrual of benefits during paid leave but halt accrual while on unpaid leave.

Consequently, if an employer offers both paid and unpaid leave, accrual should cease after the paid period ends. While the FMLA does not stipulate that PTO accrual must continue during leave, it ensures any benefits the employee would have earned are upheld during this time.

Employers may require or allow employees to use accrued paid leave for their FMLA absence. For instance, if an employee receives disability benefits, an employer cannot mandate the use of PTO. Employees retain the right to utilize their FMLA leave all at once or intermittently as necessary. Companies have discretion regarding the accrual of PTO; they can determine policies for both paid and unpaid leave.

Ultimately, employees on FMLA leave generally do not accrue additional benefits unless specified by their employer's policy, and while accruing PTO during FMLA leave is not obligatory, choices may vary based on individual company regulations.

Can FMLA Leave Be Substituted For PTO
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Can FMLA Leave Be Substituted For PTO?

When an employee is on FMLA leave and also receiving any paid benefits, the FMLA leave is treated as paid. Employers cannot mandate that the employee use paid time off (PTO) during this period, though they may allow it. Legal guidance encourages concurrent use of FMLA and other leave types to avoid "leave stacking." Many employers mistakenly overlook how paid leave interacts with FMLA. For instance, if an employee on FMLA is receiving disability benefits, the employer cannot require use of PTO.

While FMLA leave is generally unpaid, it allows for the substitution of accrued paid leave under certain conditions. The DOL stipulates that employers must process FMLA leave concurrently with any paid leave, meaning employees cannot be forced to exhaust PTO before using FMLA. Employees can opt to utilize their accrued paid leave during FMLA, which can help maintain income while on leave. While the FMLA does not require PTO accrual during leave, it permits the usage of paid leave.

Ultimately, employers can enforce policies that may require employees to use accrued vacation or sick time concurrently with FMLA leave, but not in a way that exhausts their PTO before tapping into FMLA.

What Is The Difference Between Paid Family Leave And FMLA
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What Is The Difference Between Paid Family Leave And FMLA?

PFL (Paid Family Leave) allows eligible employees to receive a portion of their salary during leave for qualifying family and medical reasons, while FMLA (Family and Medical Leave Act) offers unpaid leave. The main distinctions between New York's FMLA and PFL lie in their eligibility, benefits, and job protection. PFL provides up to 12 weeks of job-protected, paid family leave, and up to 20 weeks of job-protected, paid medical leave for Massachusetts employees.

FMLA is a federal law requiring employers to grant unpaid leave for specific circumstances, whereas PFL operates at the state level. Only some states mandate PFL, and the benefits differ from FMLA. For employees to utilize both leave types simultaneously, employers must inform them if their leave qualifies for both FMLA and PFL. Eligibility for leave under either provision includes having a covered employer, being an eligible employee, and fulfilling specific qualifying criteria.

The application criteria for short-term disability differ markedly from FMLA, which mandates 12 months of employment and 1, 250 hours worked. Additionally, while FMLA can be used for personal medical issues, PFL focuses on family caregiving, not covering one’s own health needs.

What Is Paid Time Off (PTO)
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What Is Paid Time Off (PTO)?

Paid Time Off (PTO), or accrued paid leave, is a benefit provided by employers, allowing employees to take compensated time away from work for various reasons such as vacation, illness, or personal matters. This policy consolidates different forms of leave, including vacation days, sick leave, and personal days, enabling employees to use their allotted PTO for diverse scenarios like holidays, health needs, or appointments without losing their wages. Typically measured in hours, PTO encompasses various types of leave, including maternity and paternity leave.

Employers offer PTO to enhance employee morale and productivity by allowing time off while maintaining regular pay. It differs from traditional vacation time, as all vacation is considered PTO, but not all PTO is specifically for vacations. Thus, PTO provides a versatile leave framework that can be utilized at the employee's discretion.

PTO policies vary across companies, and while they are common, they are not mandatory. The structure may include a specific number of days each year for personal use, dependent on the company's policy. In summary, Paid Time Off is a workplace benefit that enables employees to take paid leave, effectively supporting their work-life balance and overall well-being while still receiving their regular income.

Can PTO And FMLA Run Concurrently
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Can PTO And FMLA Run Concurrently?

When employees take Family and Medical Leave Act (FMLA) leave and have accrued Paid Time Off (PTO), they can receive pay during their unpaid FMLA leave. This income can significantly alleviate financial stress during medical or family-related challenges, allowing employees to focus on personal needs. The U. S. Department of Labor (DOL) mandates that employers run leave under FMLA concurrently with other paid leaves, including vacation and sick time.

This means that employees are required to use their accrued PTO during FMLA leave, which may also include workers' compensation and disability leave. While some employers might not fully understand FMLA regulations regarding concurrent use of leave, it’s crucial to comply to avoid costly mistakes and prolonged absences due to leave. The DOL has clarified that employers must designate qualifying leave as FMLA, and it’s essential for organizations to communicate their policy clearly.

Employees are encouraged to utilize accrued paid leave alongside unpaid FMLA time, as this ensures they maintain an income while on job-protected leave. Overall, understanding the intersection of FMLA and PTO is vital for both employers and employees to navigate leave policies effectively.


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Freya Gardon

Hi, I’m Freya Gardon, a Collaborative Family Lawyer with nearly a decade of experience at the Brisbane Family Law Centre. Over the years, I’ve embraced diverse roles—from lawyer and content writer to automation bot builder and legal product developer—all while maintaining a fresh and empathetic approach to family law. Currently in my final year of Psychology at the University of Wollongong, I’m excited to blend these skills to assist clients in innovative ways. I’m passionate about working with a team that thinks differently, and I bring that same creativity and sincerity to my blog about family law.

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