Long Term Disability vs Termination

We are a small business 36 employees - I have an employee who took maternity leave early due to a high risk multiple birth - We did an FMLA letter which stated she would have 12 weeks of FMLA and 40 weeks of additonal leave in accordance with our Authority policy.- She has gone from short to long term disability and has now filed for an extension which was granted. We had planned on giving her Cobra papers as of May which would be 1 year away from her job and according to our inernal Co policy we no longer have to hold her job however, since she filed for an extension on her LTD and it was granted - What happens now? We pay 100% of benefits for disability and health however her LTD is waved by the disability Co and after 26 weeks leave she was required to pay her own health insurance which she is doing. Can we terminate her on the grounds that she has been away one year and will continue to be away at least 6 more months which is a hardship on our service? Does LTD play a factor in this decision? Legally are we under any obligation to hold her job and or benefits after the 52 weeks?

Comments

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  • I can't address whether it is appropriate to terminate this individual in this circumstance under your company leave policy. This is a matter of employment law and may have implications under the ADA and perhaps state law.

    From a benefits perspective, however, the fact that the employee qualifies for LTD benefits in and of itself shouldn't matter. This is just income replacement insurance in the event of disability and would be payable regardless of whether the employee is terminated or not.

    I hope this is at least somewhat helpful.

  • Legally, you are not obligated to offer FMLA benefits as this only applies to companies with 50 or more employees.
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