Roofing company owes $63K due to issues with leave, insurance

 

When an employee needs time off because of an illness, it’s critical for employers to inform the person of all their rights under the Family and Medical Leave Act (FMLA).

 

This includes whether their illness could be eligible for FMLA leave in the first place – or how they can maintain their group health insurance coverage while they’re on leave.

 

Otherwise, companies can face significant legal penalties.

 

Mt Baker Roofing, based in Bellingham, WA, now owes $63,486 to a former employee because of its failure to follow FMLA guidelines.

 

According to an investigation by the Dept. of Labor’s Wage and Hour Division, Mt. Baker didn’t tell an ill employee he was eligible for unpaid leave under the FMLA. Eventually, the worker was terminated and lost his health insurance.

 

These actions cost the roofing company $31,743 in back wages and unpaid medical expenses, plus an equal amount in damages.

 

Legal requirements        

 

The law is clear: Employees who receive health insurance from their employers have the right to continue individual or family coverage while they’re on FMLA leave.

 

If the leave is unpaid, companies must make arrangements with worker to pay premiums. Coverage can only be dropped if a payment is more than 30 days late, and written notice must be provided first. When substituting paid leave, employees’ payments can be deducted from their pay as usual.

 

More info: bit.ly/coverage560