Maryland Employment Attorneys – Luchansky Law

LThe Family and Medical Leave Act (FMLA) of 1993 grants eligible employees up to 12 weeks of unpaid, job-protected leave annually for specific family and medical reasons. While FMLA leave is typically unpaid, employees may choose—or employers may require—the substitution of accrued paid leave to cover this period. This means that an employee’s accrued paid leave, such as vacation or sick leave, can run concurrently with FMLA leave, providing income during what would otherwise be an unpaid absence.

In recent years, several states have implemented their own Paid Family and Medical Leave (PFML) programs, offering paid leave benefits to employees for qualifying family and medical reasons. These state programs are designed to complement federal provisions, providing wage replacement during leave periods. States like Maryland, California, New York, and Washington have enacted PFML laws, each with unique provisions regarding eligibility, duration, and funding.

Do FMLA Substitution Rules Apply to State or Local Paid Family Leave Programs?

A key question for employers and employees alike is whether FMLA regulations on the substitution of paid leave apply when employees take leave under state or local paid family leave programs.

The answer lies in understanding the distinct nature of these benefits:

  1. FMLA Substitution of Paid Leave:
    Under FMLA, “substitution” refers to the practice of using accrued employer-provided paid leave (like vacation or sick leave) concurrently with FMLA leave. Importantly, FMLA’s substitution provisions apply to accrued paid leave provided by the employer, not to benefits from external sources like state PFML programs.
  2. State PFML Programs:
    State PFML benefits are typically funded through state-administered insurance programs, financed by payroll taxes paid by employees, employers, or both. These benefits are not considered accrued paid leave under an employer’s policies but are instead state-provided wage replacements. As such, FMLA substitution provisions do not apply to these benefits.

Practical Implications for Employers and Employees

When an employee takes leave that qualifies under both FMLA and a state PFML program, the two types of leave generally run concurrently. During this period, the employee receives wage replacement through the state program while being protected under FMLA’s job security provisions.

Employers cannot require employees to substitute accrued paid leave for the period covered by state PFML benefits, as these are separate entitlements. However, employers and employees may agree to allow accrued paid leave to supplement state PFML benefits—such as where state benefits provide partial wage replacement—to achieve full salary coverage during the leave period.

Key Takeaways

  • FMLA substitution provisions apply only to employer-provided accrued paid leave, not to state PFML benefits.
  • Employers and employees should familiarize themselves with the specific provisions of their state PFML program and its interaction with FMLA.
  • Clear communication of leave policies and updates is critical to ensuring compliance and informed decision-making.

For More Resources on FMLA and PFML

Luchansky Law has previously explored topics related to FMLA and Maryland’s Family and Medical Leave Insurance (FAMLI) program. For additional insights, please see:

 Stay informed about federal and state developments at employmentattorneymd.com to navigate the complexities of FMLA and PFML compliance while supporting employees during critical life events. 

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About Luchansky Law

Luchansky Law is a premier labor and employment law firm committed to providing exceptional legal representation and client service. Founded in 2004 by Bruce Luchansky, the firm offers a wide range of legal services to businesses and individuals, focusing on workplace issues, employment disputes, and compliance. Luchansky Law is dedicated to upholding the highest standards of diligence, professionalism, and compassion in its practice. Please call (410) 522-1020, email us at info@luchanskylaw.com, or stop by our office at 606 Bosley Avenue, Suite 3B, Towson, Maryland, 21204.