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Cash paid instead of medical insurance during FMLA leave

Summary WHD considered a plan paying cash to employees who had medical insurance from another source and waived the employer's coverage. It said the FMLA required continuation of group health insurance benefits during leave, but did not require the employer to continue a cash supplement paid in place of insurance.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Wage and Hour Division (WHD)
Document number
FMLA-19
Date issued
December 6, 1993
Status
Active
Status last verified October 12, 2026
Topics

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About this page: The full text below is the official document from U.S. Department of Labor, Wage and Hour Division (WHD). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.

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

December 6, 1993
FMLA-19

Dear Name*,

This is in response to your inquiry regarding certain provisions of the Family and Medical Leave Act of 1993 (FMLA). Name* plan allows employees who are covered by medical insurance from another source to receive a weekly cash supplement in lieu of insurance. You ask if the company must continue the cash supplement during a period of leave.

Pursuant to the statute and the regulations an employer is required only to maintain a group health insurance benefit during a period of FMLA leave. Consequently, there is no requirement to continue any cash supplement paid in lieu of health insurance.

Hopefully this has been responsive to your inquiry.

Sincerely,

J. DEAN SPEER Director, Division of Policy and Analysis

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

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