Can I require an employee to use PTO for hours missed under a reduced FMLA schedule?

Question: 

I have a long-term employee who received a reduced schedule accommodation under FMLA. Because the employee has been with me for so long, they accrue PTO quickly and have a sizable bank of time. I would like to require them to use available PTO to make up for the hours they are now missing. This will give them a full paycheck and avoid the issue of them potentially taking all that PTO once they are back on their regular schedule. Can I do this?

Quick Answer: 

Yes. FMLA allows employers to require employees to use available paid leave for otherwise unpaid FMLA absences, including hours missed under a reduced schedule. Follow your established policy and provide the required notices. Do not create a special requirement for this employee because you want to reduce the amount of PTO they will have available later.

The Legal Side: 

There are two questions to address: whether the employee is entitled to miss work and how those missed hours will be paid.

When PTO runs at the same time as unpaid FMLA leave, the employee receives pay for the covered hours, and those same hours count toward their FMLA entitlement. The employee must be eligible to use that type of paid leave under your normal policy.

This comes with a caveat: some states have stricter rules about requiring employees to use paid leave, particularly when the PTO bank includes mandatory sick leave. Before directing payroll to deduct the hours, you need to know what kinds of leave make up that balance and whether you are permitted to require their use. Having a bank labeled “PTO” does not answer those questions.

A good Employee Handbook will explain exactly how PTO is handled when an employee takes time off for intermittent or continuous leave. This makes it an easy reference point for both the employee and the manager handling absences. 

Also confirm whether another benefit is already paying for the absence. Disability benefits, workers’ compensation, and state paid family or medical leave benefits change the analysis. Do not assume that the rule allowing you to require PTO during unpaid FMLA leave also lets you require PTO to supplement those payments.

Your question also refers to the reduced schedule as an “accommodation under FMLA.” FMLA leave and a reasonable accommodation are separate legal protections, even when both apply to the same employee. Paying an employee for approved missed hours is different from requiring them to stop working when an accommodation would allow them to continue.

You need to understand which protections apply and how they work together before deciding how to charge the missed hours. That takes more than knowing the basic FMLA rule. Getting qualified guidance at this point helps you establish an arrangement you can explain and administer consistently.

Once the arrangement is confirmed, explain to the employee how the missed hours will be paid and what that means for their available PTO.

The Human Side: 

Your reason for wanting to require PTO deserves a closer look.

Keeping the employee’s paycheck whole is helpful. On the other hand, requiring them to use up their PTO because you are concerned they will request more time off later creates a different problem.

This employee has a larger balance because they have been with you for a long time and earned it under your policy.

If your established, lawful policy requires employees to use PTO during unpaid FMLA leave, it’s OK to apply it consistently. However, if that is not your policy, do not invent a requirement for this employee while they are dealing with a medical issue.

You are also trying to solve a scheduling problem that has not happened yet. If the employee later requests a vacation, evaluate that request under your normal scheduling and approval rules.

Having enough PTO to cover a future vacation request does not automatically entitle someone to every date they request. But your instinct is correct: a future request involving protected leave requires its own review and presents a few issues that need to be addressed.

The Takeaway: 

Apply your leave policy to the situation in front of you. Do not create a special rule to use up an employee’s earned PTO because you are worried about a vacation they have not requested.

FAQs

Does using PTO during FMLA mean the employee gets additional FMLA time afterward?

No. When properly designated to run together, the same missed hours count against both the available PTO balance and the FMLA entitlement. Paying for those hours does not create additional FMLA leave.

What happens if the employee runs out of PTO before their FMLA leave ends?

Running out of PTO does not end the employee’s remaining FMLA protection. The qualifying leave continues without PTO pay unless another benefit provides payment. Do not require the employee to return to their full schedule simply because their paid time has run out.

What if the employee still needs a reduced schedule after exhausting FMLA?

That requires a separate review of any remaining obligations under disability accommodation and other applicable laws. Exhausting FMLA does not automatically mean you can require a full return or end employment. You need to determine whether continued leave or a reduced schedule is required as a reasonable accommodation.

Explore the other two leave questions

• Do I have to pay out the whole PTO bank?

  Your handbook separates sick leave and vacation. Your payroll system combines them. Which one controls the payout?
  Read this answer

• Do I have to approve new parental leave dates?

  You planned around two days off a week. Now the employee needs more time up front. What happens next?
  Read this answer

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