An Administrator's Guide to California Private School Law

Chapter 8 – Leaves And Absences

If an employee fails to pay his or her share of premiums for 30 days, the school must provide written

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notice that payment has not been received. The notice must be mailed to the employee at least 15 days before coverage is to cease and must advise that coverage will be dropped on a specified date (which is at least 15 days after the date of the letter) unless payment has been received by that specified date. Thus, in order to drop the employee's coverage on the earliest possible date, the notice that coverage will cease should be mailed at least 15 days before the end of the 30-day grace period. In addition, be sure that when an employee requests FMLA leave, he or she is provided with a written notice describing the specific obligations of the employee and explaining any consequences of failing to meet these obligations. c. Employee Fails To Return From Leave If an employee informs the school of his or her intent not to return from leave (including at the start of the leave), or if the employee fails to return from leave, or the employee exhausts his or her FMLA leave entitlement, a school’s obligation to maintain health benefits ceases. There are two exceptions to this rule. First, a school is still required to comply with the COBRA. Second, if a “key” employee is precluded from returning from leave, the employee’s entitlement to group health benefits continues unless the employee advises the school that the employee does not desire reinstatement at the end of the leave period, or until FMLA leave is exhausted. 1277 A “key” employee is a salaried employee who is among the highest paid 10 percent of all employees employed by the employer within 75 miles of the work site. 1278 If an employee fails to return to work after the employee’s FMLA leave entitlement has been exhausted or expires, a school may recover its share of health plan premiums during a period of unpaid FMLA leave, unless the employee does not return because of the continuation, recurrence, or onset of a serious health condition of the employee or the employee’s family member which would entitle the employee to FMLA leave, or other circumstances beyond the employee’s control. 1279 d. Other Benefits If, while on an unpaid FMLA leave, an employee desires to continue life insurance, disability insurance or for other types of benefits for which the employee typically pays, the school is required to follow established policies or practices for continuing such benefits for other instances of leave without pay. If the school has no established policy, the employee and school should agree upon arrangements before FMLA leave begins. 1280

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 294