FMLA Essentials: Navigating Paid Leave Substitution Rules

On January 14, 2025, the U.S. Department of Labor issued an Opinion Letter regarding the applicability of the Family and Medical Leave Act (FMLA) substitution rule when an employee on FMLA leave is receiving state or local paid family and medical leave benefits.

An increasing number of state governments have passed legislation that provides paid family and medical leave for reasons such as personal medical, family care and parental leave. Some local governments have also adopted paid sick and/or family leave programs for their municipal government employees. These plans generally provide paid leave programs for specified family and medical reasons and vary widely in their structure (including whether they are mandatory or voluntary), the scope and duration of benefits provided, and their similarity to the leave reasons covered by the FMLA. For example, many of the leave programs permit leave for circumstances which may be qualifying FMLA leave reasons as well, while some define qualifying family members more broadly than the FMLA (e.g., including grandparents or parents-in-law), some provide leave for a different set of health conditions, and some provide a leave period longer or shorter than that provided by the FMLA.

The FMLA substitution rule allows employees or employers to substitute accrued employer-provided paid leave (such as vacation, sick leave, or personal time off) for any part of the unpaid FMLA entitlement period.

This webinar will help you navigate the “substitution rule” and whether and how it applies when employees take leave under state paid family leave programs in the same manner as they apply when employees take leave pursuant to paid disability plans.

Learning Objectives:-

Join us for an in-depth webinar exploring the U.S. Department of Labor's (DOL) recent Opinion Letter on the Family and Medical Leave Act (FMLA) substitution rule, particularly concerning employees receiving state or local paid family and medical leave (PFML) benefits.

• Understanding the FMLA Substitution Rule: Gain a comprehensive understanding of how the FMLA substitution rule permits employees to use accrued paid leave during unpaid FMLA leave, and how the recent DOL Opinion Letter impacts this provision.  
• Interaction Between FMLA and PFML Benefits: Delve into the complexities of how state or local PFML benefits intersect with FMLA leave, including the DOL's clarification that the FMLA substitution provision does not apply when employees are receiving compensation from state or local PFML programs.  
• Employer and Employee Rights and Responsibilities: Understand the obligations of employers to designate leave as FMLA when applicable, and the conditions under which employers and employees may agree to supplement state or local PFML benefits with employer-provided paid leave.

Areas Covered:-

• Understanding the FMLA Substitution Rule:
  • Learn how the FMLA substitution rule allows employees to use accrued paid leave during unpaid FMLA leave.
  • Recognize the specific conditions under which the rule applies or does not apply, particularly in the context of receiving state or local paid family and medical leave (PFML) benefits.
• Clarification on PFML Benefits Interaction:
  • Understand the DOL’s clarification that the FMLA substitution rule is inapplicable when employees are already receiving compensation through state or local PFML programs.
  • Gain insight into how this distinction influences the coordination of benefits at both the state and federal levels.
• Employer Responsibilities:
  • Explore the employer’s obligation to designate leave as FMLA-protected when an employee’s leave qualifies under the Act, even if state or local PFML benefits are involved.
  • Understand the nuances of leave designation and the importance of accurate record-keeping to ensure compliance.
• Supplementing PFML Benefits:
  • Discover when employers and employees may mutually agree to use accrued paid leave to supplement state or local PFML benefits, enhancing employee support during leave periods.
  • Learn the limitations and permissions surrounding such arrangements.
• Compliance Best Practices:
  • Develop strategies to align company policies with federal and state leave requirements, minimizing the risk of legal complications.
  • Gain actionable insights on balancing employee needs and organizational operations while adhering to the latest legal guidance.
• Impact on Leave Administration:
  • Understand how the DOL’s Opinion Letter impacts current leave administration practices and what adjustments might be needed to comply with the clarified rules.
  • Explore real-world scenarios to illustrate how these rules apply in different workplace contexts.
• Forward-Looking Considerations:
  • Anticipate how evolving interpretations of the FMLA may continue to shape the landscape of leave management.
  • Learn about potential legislative updates that could further impact FMLA and PFML coordination.

Who Should Attend?

Whether you are an employer, Human Resources professional, supervisor or in-house counsel seeking to create a supportive workplace culture or an employee navigating the dynamics of all the recent changes to Labor & Employment Law, this class will provide valuable insights and practical guidance.