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If one of my employee begins to receive paid leave under the Act after the Act becomes effective, and we later decide to furlough that employee's department, will the employee continue to be entitled to paid leave even though he and his department have been furloughed?

Following existing rules governing "normal" FMLA leave, an employee on FMLA leave is not typically protected from actions that would have affected him or her if the employee was not on FMLA leave. Therefore, if one of your employees in receiving paid leave or otherwise benefiting from leave under the Act, and you later make a business decision to furlough all non-essential employees (which includes the employee on leave), it appears you would be able to stop paying the employee leave. With that said, you also would not be able to count the furloughed period towards the employee's leave allotment.