RUNNING HEAD: FMLA LEAVE

FMLA LEAVE

NAME

INSITUTION
RUNNING HEAD: FMLA LEAVE

Total reward solution allows one to decide on how to pay employees that are approved by

the FMLA. Due to unique parameters employed by different compensation plans, and different

compensation plans are company specific, it is of paramount importance that organization should

have a policy that addresses the compensation and that they consistently follow through the

adopted FMLA leave program.

The first decision on compensation regarding FMLA is whether the employee is eligible

for pay when on FMLA leave. They are essential in knowing whether the employee is on leave

for reasons other than self-medical reasons thus not suitable for short-term disability benefits or

their short disability pay has been exhausted (Mayer, 2012). What happens if an FMLA approved

employee exhaust their short-term disability benefits during childbirth but can take more FMLA

to leave up to 12 weeks? Will they be paid?

The company should determine where to get funds for paying employees who are on

FMLA leave. Some organization will get payment from employee sick pay allotment and

vacation pay. Different possible policy solutions and scenarios will come into play when dealing

with paid and approved FMLA leave (Ruhm, 2013).

The second categories of employees are those receiving bonuses, commissions, and

incentives. Will they be paid while they are on FMLA leave? The law states that they should

maintain their eligibility for compensation while they are under FMLA leave but payments are

expected to vary depending on the compensation program. Different language will be used on

depending on the compensation plan parameters and on whether the measure is team metric or

individual. An employee on FMLA leave and subsequently paid on commission programs, they

are paid commission while they are on approved FMLA leave. They should be spent on how

commission plans define how to earn a commission.

RUNNING HEAD: FMLA LEAVE

Reference

Rossin‐Slater, M., Ruhm, C. J., & Waldfogel, J. (2013). The effects of California's paid

family leave program on mothers’ leave‐taking and subsequent labor market outcomes. Journal

of Policy Analysis and Management, 32(2), 224-245.

Mayer, G. (2012). The Family and Medical Leave Act (FMLA): An Overview.