FMLA-23 — Payment of health care premiums

U.S. Department of Labor
Employment Standards Administration
Wage and Hour Division
Washington, D.C. 20210

December 28, 1993 FMLA-23

Dear
Name*,

This is in response to your letter to
Name* of my staff regarding the requirement for employers to pay
employees' health care premiums under the Family and Medical Leave Act of 1993 (FMLA).

The FMLA and its implementing regulations, 29 CFR Part 825, require that employers maintain an
"eligible" employee's coverage under any group health plan during any period of FMLA leave on the same
conditions as coverage would have been provided if the employee had worked continuously during the
leave. This means that, if an employer normally pays a portion of an employee's group health plan
premiums prior to the employee taking FMLA leave, the employer must continue to pay the employer
share of the premiums during the FMLA leave at the same rate, i.e., as if the employee continued to work
instead of taking the leave. The employer cannot require an employee who takes FMLA leave to pay
more for maintaining group health insurance during the FMLA leave than the employee normally pays
when working.

Any policy adopted before FMLA became effective by employers that are subject to FMLA which required
employees on unpaid leave to pay the entire premium for health insurance in such cases must be revised
to comply with this requirement of the FMLA. Section 825.210(c)(4) of the FMLA regulations addresses
the employer's right to collect the employee's portion of health plan premiums during a period of FMLA
leave, but at the same rate that the employee would normally pay while working as required by the other
sections of the regulations.

Sincerely,

J. Dean Speer
Director, Division of Policy and Analysis

* Note: The actual name(s) was removed to preserve privacy in accordance with 5 U.S.C. 552 (b)(7).
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