Employees who need to take time off from work due to a medical condition often find themselves confused about the various types of leave available to them. With a whole array of different acronyms (FMLA, STD, LTD, PTO, LWOP, etc.) swirling around HR documents, approvals or denials from leave administrators, and seemingly contradictory communications from different sources, it’s very easy to feel totally overwhelmed and lost at a time when you are already experiencing some stressful health-related life event.
This blog post aims to answer one of the most common questions that workers have while navigating health-related leave from work: What is the difference between FMLA leave and STD/LTD leave?
First, let’s define our terms:
- “FMLA leave” generally refers to leave that employees may be entitled to under the Family and Medical Leave Act of 1993 (“FMLA”). This is a federal law, meaning it applies in every state in the US. It’s also possible that your state has enacted a state-level FMLA law with similar but distinct protections and eligibility criteria from the federal FMLA. For example, in Wisconsin, we have the Wisconsin Family and Medical Leave Act (“WFMLA”). For more information about eligibility requirements and how to take advantage of leave under either of these acts, check out this other blog post by Attorney Emma Knatterud-Johnson.
- “STD/LTD leave” generally refers to leave that employees may be entitled to under Short-Term and Long-Term Disability Insurance policies, most often purchased by an employer, but sometimes purchased by the employee them self. Not all employees have STD or LTD policies, and even those employees that do have policies won’t have the exact same rights and obligations under them. These policies vary widely in their eligibility criteria, benefit amount, and exclusions, and are even governed by totally different laws depending on who purchased the policy. For more information about these policies, check out our webpage specifically about these policies and our representation in these types of claims.
Now that we know what we’re talking about, let’s discuss the similarities, differences, and intersections between FMLA leave and STD/LTD leave.
The most fundamental difference between these two types of leave is what they actually provide to employees.
FMLA leave first and foremost provides job protected leave. This means that your employer cannot terminate you because of an absence that is covered by FMLA. The FMLA does offer some other protections related to FMLA leave, such as retaliation protections, but the fundamental right guaranteed to eligible employees by the FMLA is the ability to miss work without facing disciplinary repercussions for protected absences. What FMLA does not provide is any guarantee of compensation while you are off work. In other words, FMLA in and of itself is unpaid leave. FMLA can – and often does – overlap with paid time off, sick leave, or STD/LTD leave, all of which might allow you to receive some payment while on FMLA. But, if none of these other types of paid leave are available to you, then your FMLA leave will likely be unpaid.
STD/LTD leave, on the other hand, first and foremost provides paid leave. STD leave comes into play shortly after your disability starts, and usually lasts between 3 months and a year (most often 6 months). Then, LTD typically takes over and lasts from the end of STD benefits, onward. When you are approved for STD or LTD leave, you will receive either weekly or monthly checks representing a certain percentage of your pre-disability earnings. However, STD/LTD policies almost never provide job protection. This means that if you run out of FMLA leave (or weren’t eligible for it in the first place) and are still unable to return to work, your employer can typically terminate you even if you are receiving STD or LTD benefits. There are some very limited options for employees to extend a leave of absence using disability accommodation law, specifically the Americans with Disabilities Act on the federal level and the Wisconsin Fair Employment Act in Wisconsin, but these options exist in a legal grey area, especially if the additional leave is more than a week or two. The important point for purposes of this blog post is that being approved for STD or LTD benefits will almost never guarantee that your employer will hold your position open for you indefinitely while you’re on leave. And, particularly, in the case of extended LTD claims, it is both normal and expected that your employment will eventually end due to your inability to work. Luckily, almost all STD and LTD policies allow you to continue receiving benefits after you are terminated, so long as you became disabled prior to that termination.
So, for optimal job protection and financial protection while out on a health-related leave of absence, it is best to apply for both FMLA and STD/LTD leave.
One last note regarding the intersections of these types of leave: it is possible for an employer or administrator to approve you for one type of leave while denying you the other type. Sometimes these denials are legitimate, sometimes they are unlawful. This is because the eligibility criteria for these types of leave are quite different, they are often administered by different entities, and they last for different amounts of time. Thus, it’s always important to make sure you know which types of leave you have been approved for, which you have been denied, and what actual benefits or protections you are currently receiving.
If you have been denied either FMLA or STD/LTD leave when you think you should have been approved, or you want further information about these various types of leave (and others), please contact us to schedule a consultation.