Employers often face difficult decisions when an employee’s medical leave extends well beyond the anticipated return date. When an absence exceeds three or four months, businesses must balance operational needs with compliance obligations under the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and the New Jersey Law Against Discrimination (NJLAD). Missteps can lead to significant legal risk.
Understanding FMLA Limits
The FMLA provides eligible employees with up to 12 weeks of job-protected leave in a 12-month period for serious health conditions. During this time, employers must maintain health benefits and restore the employee to the same or an equivalent position upon return.
However, once the 12-week entitlement is exhausted, FMLA protections end. Employers are not required to hold the position open indefinitely under FMLA alone. That said, the end of FMLA leave does not end the employer’s legal obligations.
Smaller businesses, those with less than 50 employees, need to understand that not needing to comply with the FMLA does not mean an employee out on a medical leave does not have certain rights.
Medical Leaves and ADA Obligations
If the employee’s medical condition qualifies as a disability under the ADA, the employer must consider whether additional leave or other adjustments constitute a reasonable accommodation. A disability is broadly defined as a physical or mental impairment that substantially limits one or more major life activities.
Courts and enforcement agencies recognize that extended unpaid leave may be a reasonable accommodation if:
- The leave is for a finite period,
- It enables the employee to return to work, and
- It does not create significant operational disruption.
Employers should engage in the interactive process, a good-faith dialogue with the employee to determine what accommodations may enable their return. Documentation of this process is essential.
NJLAD: Broader Protections in New Jersey
The NJLAD often provides broader protections than federal law. It requires employers to provide reasonable accommodations for disabilities unless doing so would impose an undue hardship. New Jersey courts frequently interpret disability protections expansively, meaning employers must carefully evaluate extended leave requests and alternative accommodations such as:
- Modified work schedules
- Temporary reassignment
- Remote work arrangements
- Light-duty assignments
Failure to engage in the interactive process can itself be considered discrimination under NJLAD.
Reasonable Accommodation vs. Undue Hardship
A reasonable accommodation is any modification that enables the employee to perform essential job functions or return to work. Extended leave can qualify if it is likely to result in recovery and return.
An undue hardship exists when the accommodation causes significant difficulty or expense relative to the employer’s size, resources, and operational needs. Factors include:
- Impact on productivity and workflow
- Costs of temporary staffing or overtime
- Safety concerns
- Inability to cover essential duties
Importantly, inconvenience alone is not undue hardship.
Best Practices for Medical Leaves
When leave extends beyond several months:
- Confirm when FMLA leave has been exhausted.
- Obtain updated medical information regarding return-to-work expectations.
- Engage in the ADA/NJLAD interactive process.
- Evaluate reasonable accommodations, including finite additional leave.
- Assess and document any undue hardship.
- Consult legal counsel before termination decisions.
Conclusion
Extended medical leave situations require careful, individualized analysis. While FMLA provides a clear 12-week framework, ADA and NJLAD obligations may require additional flexibility, even for businesses who don’t need to comply with the FMLA. Employers who engage thoughtfully, document decisions, and balance compassion with operational realities can reduce legal risk while supporting employee recovery and return to work.
Marzano Human Resources Consulting
Dealing with a sensitive employee issue like a medical leave of absence is often challenging. Marzano HR Consulting has been assisting businesses maneuver through the maze of federal and state employment laws to ensure they are balancing employee fairness with business needs, while focusing on risk mitigation. Businesses should consider reaching out for a no-cost inital consultation.