Understanding the Interaction Between Unpaid FMLA Leave and Paid Time Off

Many employers wonder whether they are permitted to require that employees use any accrued paid time off (PTO) before they can access FMLA leave. The FMLA allows employers to require employees to use any accrued PTO concurrently with FMLA leave (i.e., requiring employees to substitute their paid time off for FMLA leave). Employers can also allow employees to request to use PTO while they are on FMLA leave. Employees would thus use the employer's otherwise-applicable procedures for requesting the PTO. While this gives employers significant flexibility in structuring their requirements, it's important to remember that state-level rules and restrictions may also apply. In Massachusetts, for example, state law prohibits employers from requiring employees to use PTO while they are out on FMLA leave. For more information on the FMLA rules, visit Tax Facts Online. Read More: Link to Q3640.03.