HD41 - Study of the Feasibility of Providing Wage Replacement to State Employees for Family and Medical Leave Absences

  • Published: 2001
  • Author: Department of Human Resource Management
  • Enabling Authority: Letter Request from House Committee on Rules

Executive Summary:
House Joint Resolution No. 276 requested the Department of Human Resource Management, in conjunction with the Virginia Retirement System to study the feasibility of providing wage replacement benefits to state employees who are absent for reasons covered under the Family and Medical Leave Act.

I. Family and Medical Leave Act

The Family and Medical Leave Act (FMLA) was passed in 1993 in response to a national concern of balancing work and family responsibilities. FMLA provides up to twelve weeks of unpaid, job-protected leave for eligible employees due to an illness or due the illness of a family member.

II. Methodology

To conduct the study, basic research methods were used. The Virginia Employment Commission was consulted regarding the Unemployment Insurance funds and the Virginia Retirement System was consulted concerning the Virginia Sickness and Disability Program. Also, researched was the Birth and Adoption-Unemployment Compensation Program, with information being derived from the final ruling of the report, published by the federal Department of Labor (DOL). To receive general statistics and information about Family and Medical Leave, the "Commission on Leave" document, also published by the Department of Labor, was referenced. To determine the amount of leave without pay employees took due to family reasons, employee data abstracted from the Commonwealth of Virginia Personnel Management Information System (PMIS), at the Department of Human Resource Management (DHRM), was reviewed.

III. Current Policies on Family and Medical Leave, Annual Leave, Sick Leave, and the Virginia Sickness and Disability Program

The Commonwealth of Virginia provides different types of leave policies to eligible employees under qualifying circumstances. They are: DHRM Policy 4.20, Family and Medical Leave; Policy 4.10, Annual Leave; Policy 4.55, Sick Leave ("Traditional"); and Policy 4.57, the Virginia Sickness and Disability Program (VSDP).

IV. Findings

Currently, the Federal Office of Personnel Management (OPM) and the city of Newport News allow employees to take up to twelve weeks of accrued sick leave due to family related matters, if the employees have leave available for use. The state of Florida allows employees to use accrued sick leave with no limit.

Virginia allows employees to use VSDP leave or accrued "traditional" sick leave for family reasons, however the employee may only use up to 33 percent of the leave balances available at the time FMLA leave is requested.

In the Commonwealth during 1998, 279 state employees experienced a loss of pay during FMLA leave in 1998. The number of days employees experienced leave without pay totaled 14,047. In 1999, the number of employees who lost pay during FMLA leave decreased to 145 employees, a decrease of 48%. Additionally, the total days of leave without pay reported, reflected a 57% decrease from the previous year. This decrease most likely can be attributed to VSDP, which was implemented on January 1, 1999; however, at the writing of the report, statistics verifying this assumption were not available.

The federal Birth and Adoption Unemployment Compensation (BAA-UC) Program permits states to use their unemployment compensation funds to provide wage replacement to parents taking leave because of the birth or adoption of a child. The experiment became effective on August 14, 2000. When at least four states have participated in the BAA-UC for at least three years, DOL will evaluate the program to determine whether the regulations should be made permanent.

V. Conclusion

Two possible ways of providing wage replacement for employees taking FMLA leave are through participation in the Birth and Adoption-Unemployment Compensation program or through expanding the definition of sick leave. However, it appears that the VSDP is reducing the incidents of leave without pay for FMLA reasons.

VI. Recommendations

• Because of the impact upon a select group of state employees and costs associated with providing wage replacement, expanding the definition of sick leave does not appear to be a feasible way of providing wage replacement for employees taking FMLA leave without pay.

• It is recommended that the Virginia Employment Commission study the potential impact to the Unemployment Trust Fund for providing wage replacement through participation in the Birth and Adoption Unemployment Compensation Program.

• Further study is recommended to determine if there is a continuing impact of VSDP on employees experiencing leave without pay during FMLA leave.

• If there is no improvement noted after another year, then it is suggested that the eligibility criteria "and procedures for the state's Leave Sharing Program be expanded to provide donated leave hours to employees experiencing leave without pay under FMLA for family reasons. Such changes should be made administratively under the authority of the Director of the Department of Human Resource Management to establish personnel policies and procedures.