Coordination of Benefits – A Practical Guide for Employers

By Marissa Mayfield, MBA

Senior Product Manager, Statutory Disability & PFL
Lincoln Financial Group

In today’s complex leave environment, a single absence event often triggers an employee’s eligibility for multiple leave and benefit programs. Employers must coordinate paid and unpaid programs, whether government-mandated or employer-sponsored, to determine an employee’s leave allowance and potential wage continuation.

Employers coordinate benefits to ensure employees can access all appropriate benefits while mitigating absenteeism and workforce planning risks. When coordinating leave programs that provide job protection and other rights, employers must determine how to sequence leaves. Also, when an employee will be paid under more than one leave or disability program, many employers coordinate payments to ensure the total of all payments does not exceed 100% of an employee’s pay.

Understanding key terminology will help employers navigate the complexity. Key for leave programs is determining whether employers can require leaves to run concurrently or if an employee may stack time by taking leave in a sequence. For example, if an employee is eligible for leave under both the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act, the employer can require these leaves be taken concurrently. In some cases, an employer may allow leave to be stacked, giving the employee more time off work.

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