Employers are not required to extend holiday pay to employees out on Federal Medical Leave Act (FMLA) time but should consider creating policies that clearly communicate the organization’s stance on holiday pay eligibility.
For example, a policy could clarify that if an employee is on continuous FMLA leave (out for entire week or more), the holiday is counted as an unpaid FMLA day. The policy could also clarify that if an employee has an intermittent FMLA designation, the holiday is processed and paid as it would be for any other employee, establishing that the intermittent FMLA leave before and after the holiday does not adversely affect the employee's eligibility for holiday pay.
Employees with serious health conditions or other FMLA qualifying circumstances often cannot control the timing of their need for job protected leave. To financially penalize them could be grounds for a complaint. Opting to extend holiday pay eligibility to employees with intermittent FMLA designations helps avoid that risk.
Employees are eligible for job-protected leave for qualifying medical or family reasons once they have worked at their FMLA-covered employer for 12+ months with at least 1,250 hours of service within that time, and work at a location with a minimum of 50 employees within 75 miles.
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