How long do we have to continue an employee’s health insurance when they’re absent due to a workplace injury and receiving workers’ compensation benefits?

Workers’ compensation does not protect an employee’s health benefit plan.

However, if your employee qualifies for the federal Family and Medical Leave Act (FMLA) or state leaves such as the California Family Rights Act (CFRA) or pregnancy disability leave (PDL), you can place the employee on family leave running concurrently with workers’ compensation, and that will protect the employee’s benefits for 12 weeks as long as your plan is Employee Retirement Income Security Act (ERISA) qualified.

Some employees don’t want to be placed on FMLA or CFRA, intending to use those leaves for another reason later in the year. It is the employer, however, who makes the decision and places the qualifying employee on whichever leave is appropriate.

Keep in mind also that if the employee doesn’t qualify for family leave, their being out on workers’ compensation is a reduction in hours triggering Consolidated Omnibus Budget Reconciliation Act (COBRA).

If the injured employee does qualify for family leave but requires workers’ compensation benefits for longer than 12 weeks, then the continuation of benefits under family leave expires and the employer is required to send a timely notice of COBRA rights.

Many employers are under the misconception that if an employee has a disability, health benefits cannot be discontinued. Those benefits, however, are protected only by state and federal family leave and pregnancy disability leave laws.

Read more about Benefits During Workers’ Compensation in the HR Library.