What happened?

On January 14, 2025, the Department of Labor (DOL) issued an opinion letter clarifying that employers cannot force employees to use accrued paid time off (PTO) during Family and Medical Leave Act (FMLA) leave if they are also receiving state or local paid leave benefits.

Overview:

This opinion addresses the interplay between FMLA, state/local paid leave programs, and accrued PTO.

• PTO Substitution: While FMLA leave is unpaid, regulations allow employees to use accrued PTO concurrently with FMLA leave. However, the new DOL opinion states that employers cannot mandate this substitution if the employee receives state or local paid leave benefits.

• Clarifications:
  • The opinion letter emphasizes that employers cannot require employees to use accrued PTO during FMLA leave if they receive state or local paid leave benefits. This ensures employees can fully benefit from state or local programs without depleting their PTO.
  • If an employee receives disability or workers’ compensation benefits, PTO substitution is not allowed unless mutually agreed upon to supplement these benefits.
  • The opinion letter clarifies that the same principles apply to state/local paid leave programs as to disability plans and workers’ compensation programs.

• Employers must adjust their policies to align with the DOL’s opinion, ensuring employees are not forced to use PTO during FMLA leave when receiving state or local paid leave benefits.

• This opinion letter is not legally binding but provides insight into how the DOL interprets relevant statutes and regulations.

Additional Details:

• Employers should review and update their leave policies to ensure compliance with the DOL’s interpretation. Policies should state that PTO can only supplement state/local paid leave benefits if the employer and employee agree.

• Employers must designate leave under state or local paid family or medical leave programs as FMLA leave if it qualifies.

• If an employee’s state/local paid leave ends before exhausting their FMLA entitlement, the FMLA substitution provision would then apply, allowing the use of accrued PTO.

Source References

• DOL Opinion Letter Jan. 14, 2025: FMLA and PTO Use (FMLA2025-01-A)

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