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New Hampshire- Short Term Disability and Paid Time Off New Hampshire

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  • New Hampshire- Short Term Disability and Paid Time Off New Hampshire

    The FMLA states "Because leave pursuant to a disability benefit plan is not unpaid, the provision for substitution of the employee's accrued paid leave is inapplicable, and neither the employee nor the employer may require the substitution of paid leave. However, employers and employees may agree, where state law permits, to have paid leave supplement the disability plan benefits, such as in the case where a plan only provides replacement income for two-thirds of an employee's salary."

    We have an employee who has been approved to be out on short term disability due to a hospitalization (benefits will be actually paid by our 3rd party provider and then recorded in payroll for tax/reporting purposes). All the paid time off the employer offers is classified as PTO and can be used at any time for any purpose.

    The first sentence quoted from the FMLA above is telling me that if the employee is eligible to receive STD payments, that they can not chose (or be forced) to use PTO, correct? And i've been scouring the internet to no avail, to try to find out if NH allows the use of PTO to supplement STD payments to create a full paycheck?

    Any info would be appreciated! Thanks!

  • #2
    Read the second sentence. The first just means you can not charge an employee on FMLA who is receiving STD salary replacement with PTO at the same time. If Jane is off work for 2 months and those 2 months are covered by STD, you can not also dock her sick leave. If STD pays 50%, you can allow Jane to use 50% of her sick leave to remain "whole".
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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    • #3
      Thanks for the quick response!

      So the employee cant say "I want to wait 3 weeks before getting my STD payments because i want to use PTO so i get full paychecks instead." And the employer cant say "You need to use your 3 weeks of PTO before your STD payments can start."

      The STD payments need to start right away (after the waiting period noted in the policy), and New Hampshire is one of the states that does allow PTO to be used to supplement whatever STD isnt paying?
      Last edited by AWonderingMind; 05-05-2015, 09:35 AM.

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      • #4
        correct...but you might want to check the plan document on STD to make sure you can make them whole without it affecting what STD pays. Sometimes it is combined with anything you pay but still limited at 60% (or whatever) in total. Be careful to make sure your plan allows the employer to pay the difference.

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