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If an employee is out on short term disability for maternity leave, is the employer allowed to pay the employee the difference?
Seattle, WA
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Posted 6 months ago in Employee Benefits
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If an employer pays the difference between the STD payment and 100% of their pay (I.e. STD = 66.67% and Employer = 33.33%) does this cause an employee to become ineligible for STD benefits?
Answers (1)
George F Cicotte
This attorney is licensed in Washington and 2 other states.
Posted 6 months ago.
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It depends on the terms of the STD plan and the insurance policy, if one is involved. STD policies frequently do not pay benefits when a participant receives sick pay from the employer, but may pay if the employer is eligible for vacation pay or PTO, even if the vacation pay or PTO results in 100% pay replacement (or sometimes even more than 100% pay replacement). So, your answer will depend on (i) the terms of your STD plan or policy and (ii) the nature of the payments from the employer.
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