? for Moms about short-term disability

boomhauer

When the world gets in my face, I say - Have A Nic
Joined
Aug 17, 2005
Messages
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Hi all.

My step-mother told my wife and I something we weren't sure about last night. My wife is currently receiving short-term disability from her company while she's on maternity leave. My wife's been looking at other work or possibly not going back at all. My step-mother told us that when she was on maternity leave, her company's policy was that if she didn't return to work, she had to pay that money back.

Certainly sounds possible, but I'm not sure. Is this common practice? Does it depend on the company? If it's true, how long would she have to go back for?

Obviously, my wife could call her company to find out, but for obvious reasons, doesn't want to do that. She doesn't want them to know that she's looking around.

Thanks in advance.
 
When I met with the HR rep at my place of employment before I went out on FMLA, this was brought up, and was a VERY real possibility.
 
Yes, I think that is a possibility. Your wife should have a copy of her insurance certificate or employee handbook, which spells the policy out.

Denae
 
When I met with the HR rep at my place of employment before I went out on FMLA, this was brought up, and was a VERY real possibility.

Yeah, she gets that FMLA thing too coming up at the end of the disability.

I would assume if it is true, there must be some time limit for how long you need to come back to work for, either set up by the company or insurance policy. Can't imagine it's not written out, know what I mean?

Guess that'd kind of stink if she ends up finding a better job. As they say, "if thems the rules"...
 

It would depend on the company. I didn't return after my last maternity leave and I didn't have to pay anything back. Plus I was paid the 4 weeks vacation I was "owed".
 
It would depend on the company. I didn't return after my last maternity leave and I didn't have to pay anything back. Plus I was paid the 4 weeks vacation I was "owed".

We were talking about that last night too. She's got 3 weeks vacation banked. I would assume they have to give that to her as well since she's earned it.

As you said - It must depend on the company.
 
At my company, I think you must return to work for 1 day in order to avoid the "pay back."

The typical pattern is:
First day back - regular day at work
second day back - quit, give 2 weeks' notice
Work 2 weeks
Leave, get vacation cash out

At my company it's very important to give 2 weeks notice. If you don't, you'll NEVER be eligible to return for future jobs there (or at any affiliated, merged, acquired company).
 
Wow! I'm really surprised. I would have thought that it would be illegal to make an employee give disability benefits back if they decide not to return to the job.

I know lots of women who didn't return to work after maternity leave, and while some of them said they wouldn't give notice until the end of their disability periods, so as not to have the benefits stopped, none them ever mentioned paying it back when they didn't return to work.

I guess she really needs to find out what her company policy is. Hopefully, she has a good handbook, or maybe she can request one from HR without saying specifically what she wants to look up.
 
It entirely depends on where the disability is coming from. If it's a state funded plan then she shouldn't ahve to give it back. If it's a private plan that she may or may not. If it's employer funded, then the rules are very likely that it needs to be given back.

Just an FYI--disability that doesn't come from the Federal government (ie SSDI/SSI) is almost always taxable as income, so be prepared at tax time next year so you don't end up with a large unexpected tax bill and no money set aside to pay it.

Anne
 
Mine doesn't require payback for short-term disability, but it does for health insurance benefits paid during FMLA leave:

"If the employee fails to return from leave for reasons other than the continuation of a serious health condition of the employee or a covered family member, or because of other circumstances beyond the employee's control, [the company] may seek reimbursement from the employee for [the company's] share of the premium paid on behalf of that employee."

For a six week leave here, assuming you have family health coverage, the amount would be approximately $3K.

In many cases you are required to use up all accrued sick/vacation time before FMLA kicks in.
 
I didn't return to my job after my son was born and I didn't have to pay back my maternity leave pay and I also got paid for my few last remaining vacation days I had left. But that was 15 years ago, companys may be more strict now.
 


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