Certified Leave Management Specialist (CLMS) Certification Practice Test

Can an employer reduce an employee's healthcare insurance if they return part-time after exhausting FMLA leave?

1. True

2. False

3. Only if there is a company policy

4. It depends on the employment contract

The correct answer is: True

The ability for an employer to reduce an employee's healthcare insurance if they return part-time after exhausting FMLA leave is based on the provisions outlined in the Family and Medical Leave Act and how it intersects with the employer's policies regarding part-time employees. When an employee returns to work after FMLA leave, they retain their rights to the same job or an equivalent job and the same health insurance benefits that they had before the leave, provided they return to the same or a similar schedule. However, if an employee transitions from full-time to part-time status, the employer may be able to adjust the healthcare benefits accordingly. Many employers have specific policies governing benefits for part-time employees, which can lead to reduced coverage or different premium rates. If the employer's policy stipulates that part-time employees are eligible for less comprehensive benefits compared to full-time employees, then it is permissible for the employer to reduce the employee's healthcare insurance. This aligns with the employer's right to modify benefits based on employment status while remaining compliant with the FMLA. As such, the correctness of the answer hinges on recognizing that the employer's policies can dictate the availability and extent of benefits offered to employees based on their work schedule after returning from leave.