How does FMLA affect cafeteria plans?
A. While on Family and Medical Leave Act (FMLA) leave, employees must continue to receive the same health benefits they had as active employees. An employee on FMLA leave must be permitted to either continue coverage under a health care FSA or revoke an existing health care FSA election for the remainder of the coverage period. Such an employee also has the right to elect to be reinstated in the health care FSA upon return from FMLA leave on the same terms as prior to the leave. A cafeteria plan may offer to an employee on unpaid FMLA leave one of three options to continue health benefits while on leave: prepayment, pay-as-you-go, or catch-up. An employee on paid FMLA leave must be allowed to pay his or her share of premiums by the method normally used during any paid leave. An employee’s entitlement to non-health benefits under a cafeteria plan while on FMLA leave is determined by the employer’s established policy for providing such benefits while the employee is on non-FMLA leave.
