DOL Opinion Letter on Health Benefits and Cafeteria Plan Funding During FMLA Leave

Deloitte's Washington Bulletin of March 13, 2006 has this news item concerning a recently released Department of Labor Opinion Letter on the relationship between an employer's responsibility to continue employee health care coverage during FMLA leave and its obligation to continue to allot money to employee cafeteria plans during that same period.

From the Washington Bulletin:

Employers must continue allotting money to IRC § 125 cafeteria plans to pay group health insurance premiums for employees taking leave pursuant to the Family and Medical Leave Act (FMLA), according to a Department of Labor opinion letter. FMLA2006-3-A (January 31, 2006).

The FMLA specifically requires employers to maintain group health benefits for employees taking FMLA leave “at the level and under the conditions coverage would have been provided if the employee had continued in employment continuously for the duration of such leave.”

Employers do not have to maintain other types of benefits during FMLA leave, but employees have a right to “equivalent benefits” upon returning from such leave.

The DOL Opinion letter itself can be accessed here.

Hat Tip: Debra Davis

PS