FMLA-65 — Repayment of health insurance premiums

U.S. Department of Labor
Employment Standards Administration
Wage and Hour Division
Washington, D.C. 20210

July 13, 1995 FMLA-65

Dear
Name*,

Thank you for your letter of May 18, 1995, addressed to Secretary Reich about the Family and Medical
Leave Act of 1993 (FMLA). Your letter has been referred to the Wage and Hour Division for reply as this
office has primary administration and enforcement under FMLA for all private, state and local government
employees and some federal employees.

In your letter, you ask for an opinion as to how much can be deducted from an employee's wages to
repay the employer for paying the employee's portion of the health care premium when the employee
returns to work from an FMLA leave if the employee does not agree to the amount proposed by the
employer and would prefer a smaller amount. As stated in your letter, we will assume that the employer is
covered, the employee is eligible, the reason for taking FMLA leave is one permitted by the Act, and that
there are no other compliance questions that might affect our response.

Section 825.210(d) of the FMLA Regulations requires the employer to provide the employee with advance
notice of the terms and conditions under which employees may pay their shares of group health benefit
plan premiums as a part of the notification requirements of section 825.301(b) and as outlined on optional
use form Employer Response to Employee Request for Family or Medical Leave (WH-381).

Consequently, the problem you outline should occur when the leave begins or when the employee gives
notice of the need for leave if that occurs earlier. In any event, section 825.210(b) and (c) respectively
outline how payments may be made where the leave is paid or unpaid. Where none of the prescribed
methods are chosen, the parties may chose any "system voluntarily agreed to between the employer and
the employee, which may include prepayment of premiums (e.g., through increased payroll deductions
when the need for FMLA leave is foreseeable)." (825.210(c)(5))

The regulations do not contain guidelines with respect to those situations where the employer and
employee are unable to resolve differences with respect to the repayment of the employee's share of
group health benefit premiums. It is our view that such arrangements should be reasonable and not
impose unreasonable hardships or difficulties on either party. For example, the employer should not
attempt to recover payments all at once by deducting the entire amount due from the employee's first
paycheck. On the other hand, the employee should not attempt to stretch the payments out over an
unreasonably long time. The Department would view additional deductions equal to a regular group
health plan premium as reasonable.

I hope, this has been responsive to your inquiry. Should you require further assistance, please do not
hesitate to contact me.

Sincerely,

Daniel F. Sweeney
Deputy Assistant Administrator

cc: New York Regional Office

* Note: The actual name(s) was removed to preserve privacy in accordance with 5 U.S.C. 552 (b)(7).
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