Leave of Absence Effects on Employee Benefit Plans

Summary

This practice note discusses how an employee benefit plan must operate to comply with federal and state laws that require or permit employee leaves of absence and other benefit plan administration issues for employees on leave. As applicable, employers must account properly for the accrual of an employee's benefits and service during a leave of absence and provide opportunities for the inactive employee to make benefit elections, make contributions, or otherwise participate in the plan. Compliance failures may result in statutory and/or contractual civil liability and plan operational failures.