Layoffs, Leaves of Absence and Benefits During COVID-19

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Employers facing difficult business decisions right now may find themselves laying off employees. Others may be placing employees on leaves of absence because of industry slow downs.

Insurance contracts generally require employees to be actively at work in order to remain enrolled in benefits. The known exception to this requirement is for FMLA approved leaves. But what about leaves of absence not covered by FMLA, because an employee is not sick or caring for a family member, but simply told they cannot work for a period of time (because there is no work)? If an employer is requiring employees take a leave of absence from work during the COVID-19 pandemic due to a business slow down, they have two main options.

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M. Brant Watson
Senior Vice President
Heffernan Insurance Brokers
D:  (925) 295-2506
M:  (925) 330-1151
Email brantw@heffins.com

Published by L Watson

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