Do You Have to Repay Insurance Premiums After Resigning Post-FMLA?

Question from Laura, Do You Have to Repay Insurance Premiums After Resigning Post-FMLA?

Answer from AI:

If you are out on short-term disability and Family and Medical Leave Act (FMLA) leave, and your FMLA time runs out, you might be wondering about your obligations regarding insurance premiums if you resign shortly thereafter. Here’s a general explanation of how this situation is typically handled in the United States.

Understanding FMLA and Insurance Premiums

The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave for certain family and medical reasons while maintaining group health insurance coverage under the same terms and conditions as if they had not taken leave.

Employer’s Obligation During FMLA

During FMLA leave:

• Your employer must continue to pay their share of your health insurance premiums.
• You are responsible for continuing to pay your share of the premiums, just as if you were still working.

What Happens When FMLA Runs Out?

When your FMLA leave ends, your employer is no longer required to maintain your health insurance under the same terms. If you resign after your FMLA leave ends, the situation regarding repayment of insurance premiums can vary based on several factors:

1. Company Policy: Some employers may have policies that require employees to repay the employer’s share of health insurance premiums if they do not return to work after FMLA leave. This is more common if the employee does not return to work for a specified period after the leave.
2. State Laws: State laws may also impact whether you need to repay these premiums. Some states have additional protections or requirements regarding leave and insurance premiums.
3. Short-Term Disability Insurance: If you were on short-term disability, the terms of your disability insurance policy might also affect your obligations. Review your policy to understand any repayment requirements.

Consulting with a Legal Professional

Given the complexity of employment laws and the potential for company-specific policies, it is crucial to consult with a legal professional to understand your specific situation. A lawyer can provide personalized advice based on your employment contract, company policies, and applicable state and federal laws.

Steps to Take

If you find yourself in this situation, consider the following steps:

1. Review Your Employment Contract: Check for any clauses related to repayment of benefits or insurance premiums.
2. Consult Your HR Department: Ask for clarification on company policies regarding insurance premiums and FMLA leave.
3. Seek Legal Advice: Contact an employment lawyer to discuss your rights and obligations.

Resources

For more information, you can refer to the following resources:

• U.S. Department of Labor – FMLA
• U.S. Department of Labor – COBRA

Remember, while this information provides a general overview, it is not a substitute for professional legal advice. Always consult with a legal professional to address your specific circumstances.