Continuation of Benefits

(a)During any period that an eligible employee takes leave pursuant to § 3602(a) or takes leave that qualifies as leave under the FMLA, the employer shall maintain and pay for coverage under a “group health plan,” as defined in Section 5000(b)(1) of the Internal Revenue Code, for the duration of the leave, not to exceed twelve

(12)workweeks in a twelve (12)-month period, commencing on the date leave taken under the FMLA or under § 3602(a) commences, at the level and under the conditions coverage, if any, would have been provided if the employee has continued in employment continuously for the duration of the leave; provided, that the employee shall continue to pay for the employee’s share of insurance premiums at the same level that would have applied if the employee has continued in employment continuously for the duration of the leave. Nothing in the preceding sentence shall preclude an employer from maintaining and paying for coverage under a “group health plan” beyond twelve

(12)workweeks. An employer may recover the premium that the employer paid as required by this Subsection for maintaining coverage for the employee under the group health plan if both of the following conditions occur:

(1)The employee fails to return from leave after the period of leave to which the employee is entitled has expired; and

(2)The employee’s failure to return from leave is for a reason other than the continuation, recurrence, or onset of a serious health condition that entitles the employee to leave under § 3602(a) or other circumstances beyond the control of the employee.

(b)Any employee taking leave pursuant to § 3602(a) shall continue to be entitled to participate in employee health plans for any period during which coverage is not provided by the employer under § 3605(a), employee benefit plans, including life insurance or short-term or long-term disability or accident insurance, pension and retirement plans, and supplemental unemployment benefit plans to the same extent and under the same conditions that apply to unpaid leave taken for any purpose other than those described in § 3602(a). In the absence of these conditions an employee shall continue to be entitled to participate in these plans and, in the case of health and welfare employee benefit plans, including life insurance or shortterm or long-term disability or accident insurance, or other similar plans, the employer may, at the COL08222024 CH. 3 FAIR LABOR STANDARDS employer’s discretion, require the employee to pay premiums, at the group rate, during the period of leave not covered by any accrued vacation leave, or other accrued time off, or any other paid or unpaid time off negotiated with the employer, as a condition of continued coverage during the leave period. However, except as otherwise provided in this Article or Subsection

(c)of this Section, the nonpayment of premiums by an employee shall not constitute a break in service for purposes of longevity, seniority under any collective bargaining agreement, or any employee benefit plan.

(c)For purposes of pension and retirement plans, an employer shall not be required to make employer or employee contribution payments during the period of unpaid leave, and the unpaid leave period during which plan payments are not made shall not be required to be counted for purposes of time accrued under the plan. However, an employee covered by a pension or retirement plan may continue to make contributions at the employee’s expense in accordance with the terms of the plan during the period of the unpaid leave, and the employer may make corresponding employer contributions if required in accordance with the terms of the plan.

(d)During a family care and medical leave period, the employee shall retain employee status with the employer, and the leave shall not constitute a break in service for purposes of longevity, seniority under any collective bargaining agreement, or any employee benefit plan. An employee returning from leave shall return with no less seniority than the employee had when the leave commenced for purposes of layoff, recall, promotion, job assignment, and seniority-related benefits such as vacation.