Workers Compensation and paying Voluntary benefits

bjeannotte

For the first time in the company history, we have someone out on WC.  I noticed that he has medical, supplemental life insurance and is on flexible spending which are all voluntary deductions out of his pay. Since he will  not be receiving a payroll check since he is getting benefits from Workers Compensation, how do I go about recouping the money he owes?  Does anyone have a sample form or information I can use as a guide to ensure I am asking for him to pay for the benefits the correct way?  Ahhhh  something so simple is so difficult. hahaha

HRforME

Is your employer large enough to fall under FMLA? "2) The Act provides that a serious health condition may result from injury to the employee ``on or off'' the job. If the employer designates the leave as FMLA leave in accordance with Sec. 825.208, the employee's FMLA 12-week leave entitlement may run concurrently with a workers' compensation absence when the injury is one that meets the criteria for a serious health condition. "

 If so, you need to follow the FMLA regulations: http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_825/29CFR825.209.htm

"(h) An employee's entitlement to benefits other than group health benefits during a period of FMLA leave (e.g., holiday pay) is to be determined by the employer's established policy for providing such benefits when the employee is on other forms of leave (paid or unpaid, as appropriate).[60 FR 2237, Jan. 6, 1995; 60 FR 16383, Mar. 30, 1995]"

Section 210 goes on to state "(f) An employee who is receiving payments as a result of a workers' compensation injury must make arrangements with the employer for payment of group health plan benefits when simultaneously taking unpaid FMLA leave. See paragraph (c) of this section and Sec. 825.207(d)(2).[60 FR 2237, Jan. 6, 1995; 60 FR 16383, Mar. 30, 1995]"

Here is paragraph (c) of the same section:"(c) If FMLA leave is unpaid, the employer has a number of options for obtaining payment from the employee. The employer may require that payment be made to the employer or to the insurance carrier, but no additional charge may be added to the employee's premium payment for administrative expenses. The employer may require employees to pay their share of premium payments in any of the following ways:
    (1) Payment would be due at the same time as it would be made if by payroll deduction;
    (2) Payment would be due on the same schedule as payments are made under COBRA;
    (3) Payment would be prepaid pursuant to a cafeteria plan at the employee's option;
    (4) The employer's existing rules for payment by employees on ``leave without pay'' would be followed, provided that such rules do not require prepayment (i.e., prior to the commencement of the leave) of the premiums that will become due during a period of unpaid FMLA leave or payment of higher premiums than if the employee had continued to work instead of taking leave; or,
    (5) Another system voluntarily agreed to between the employer and the employee, which may include prepayment of premiums (e.g., through increased payroll deductions when the need for the FMLA leave is foreseeable).

If either the company or employee doesn't fall under FMLA, you need to see what policy you have had in the past when an employee has been on unpaid leave. You also need to check with your insurance carriers to see what is written in the plan documents regarding leave and how long they can continue benefits.  Last but not least, you need to check with your state's WC laws.  Each state is different, so I hesitate to guess if there is anything regardig that in your state -- your carrier and/or broker might be able to help you out. 

Personally I would fall back to one of the standard FMLA payment options assuming you don't find an issue under your state WC laws or your insurance contract.