I currently have good medical insurance for my family, but for an employer that is circling the drain. I have already been approved for intermittent FMLA due to the chronic illness of a family member. I need other employment that comes with insurance and am expecting an offer. But, there’s a problem.
If I get an offer from a certain employer, it will be a few months before the insurance kicks in. Just a few months could mean very significant bills over that time. I’ve got a couple of months FMLA leave available, during which time I will have insurance, though I’ll have to pay the premiums whether I get a check for working or not. But, I’m also told that I’m not allowed to take employment elsewhere while on FMLA leave.
Obviously they can’t stop me from taking other work on leave, the question is, “What are they going to do when/if they find out?”. If they terminate me on the spot, I still have the benefit of insurance up until the point I’m busted. If they try to make me pay the share of the premiums they paid into the policy, I’m almost certainly still coming out ahead. Can they retroactively void the policy, leaving me on the hook for all the bills as if I had no coverage?(seems unlikely) Would such conduct constitute criminal fraud? (also seems unlikely)
Been trying to google, but answers seem rather general. Any HR gods out there?
I’m not clear on whether you really need to take FMLA for a couple months. Someone else will have to chime on on that part, as I believe there’s paperwork filed with the State for that so they will know if you take other employment during that time.
As far as insurance, you have COBRA for 18 months after termination of employment, to maintain your current policy until the next job’s insurance kicks in. You have to pay the full premium yourself during that time, but you’re covered. So, you leave current job and take next job. Next job’s insurance won’t kick in until you complete the 90 day trial period. You pay COBRA and continue coverage on the old policy until the new one is active.
To add… if you are on COBRA and the prior employer cancels the policy when they go out of business then you lose your COBRA coverage. You should be able to pick up an Obamacare policy with no bar to pre-existing conditions at that point that would carry you through until a new policy under a new employer kicks in.
If you take leave and don’t return, they can bill you for the cost of covering your various insurances while you were gone.
Your employer continues to pay your premiums (health, dental, life, etc.) while your’re on leave - both the portion they normally pay AND the portion you would normally pay - so it’s my understanding they can bill you for that if you don’t return. They can certainly bill you for the portion of insurance that you would normally pay. I don’t know if they can bill you for the total costs.
You could check with your state’s labor department to see what you would owe to your (ex-) employer if you don’t return from leave. Or, ask an HR expert in your state. But it’s probably something you should be aware of.
For COBRA coverage you must send payment to your former employer for the full amount of the premium. They are permitted to add an administrative fee so that the total is no more than 102 percent of the full premium.
Remember, loss of job is a qualifying event entitling you to a special enrollment period for an Obamacare plan. This allows you to select a plan of your choice outside the normal open enrollment period.
Although FMLA & COBRA are federal programs, some of the details around this stuff depend on the specifics of state law. The OP would be well-advised to use in-state sources for info.
The purpose of FMLA is to give you time off for reasons that make you unable to work (including caring for a family member). If you work while on FMLA, you’ve proved that you don’t need FMLA in the first place and your employer can (and should!) fire you - you’re defrauding them out of whatever they pay for your benefits, plus your delaying their ability to find a replacement for you.
The honest thing would be to quit and take COBRA or find another plan until your new insurance kicks in.
Actually you can work at another job while on FMLA, providing the company you are taking leave from has no uniformly declared and enforced policy against moonlighting while on leave.
If the FMLA was fraudulently obtained that is another issue to consider but legal fraud and ethical fraud are not the same.
Basically the courts have said, that if an employee is on FMLA and the employer has an uniform enforced policy against moonlighting while on leave it is not OK to work. Otherwise they can.