Employer not allowing to use sick benefits

[zamber8]

What is the name of your state (only U.S. law)? SC

I have several weeks of paid sick leave available with my employer.
I recently was out for two weeks due to gallbladder surgery. My company is not allowing me to use the paid sick time I have available and instead has made me use the short term disability insurance through the company to pay for the two weeks I was out. The problem with this is short term disability only pays 70% of my salary so I am out the 30% when I have over 2 weeks worth of paid sick time available to use where I would have received 100% of my salary. Can they do this?

 

[Zigner]

What is the name of your state (only U.S. law)? SC

I have several weeks of paid sick leave available with my employer.
I recently was out for two weeks due to gallbladder surgery. My company is not allowing me to use the paid sick time I have available and instead has made me use the short term disability insurance through the company to pay for the two weeks I was out. The problem with this is short term disability only pays 70% of my salary so I am out the 30% when I have over 2 weeks worth of paid sick time available to use where I would have received 100% of my salary. Can they do this?

Yes, they can do this.

 

[ESteele]

While arguably inequitable, this treatment does not appear unlawful.

From a practical standpoint, how much are you actually losing at the end of the day? As I understand it, your short-term disability insurance benefits will be tax free. In contrast, your salary is subject to various taxes. While the benefits for this period may only equal seventy percent of your pre-tax income for this period, what would have been your net take home pay had you utilized sick leave?

You should speak with your tax adviser to confirm that the insurance benefits will not constitute taxable income.

 

[swalsh411]

STD is tax free only if the employee paid the premium.

 

[ESteele]

Yes. That is my (limited) understanding. If your employer paid the premiums for the coverage or paid for the coverage with your pre-tax income, then your resultant benefit would be taxable. If, however, you paid the premiums out of your after-tax income, then the resultant benefits would not be taxable.

 

[Beth3]

Since your employer doesn't have to provide paid sick days at all, they get to set the rules of the road if they provide this benefit. Hard to understand why they wouldn't let you use accumulated paid sick time when you're having surgery though. What did they say when you asked them why you couldn't use your sick time?

 

[OHRoadwarrior]

Probably that the purpose of sick time was for short illnesses and longer terms for disability. Sounds like OP wants to double dip.

 

[davew128]

Probably that the purpose of sick time was for short illnesses and longer terms for disability. Sounds like OP wants to double dip.

and how do you come up with that? OP sounds to me like they just want the most beneficial one. If they were getting sick time, they don't qualify for disability anyway.

 

[ecmst12]

Most employers will REQUIRE an employee to use up all their sick days before they can go on disability. But that's not because the law says they have to.

 

[OHRoadwarrior]

and how do you come up with that? OP sounds to me like they just want the most beneficial one. If they were getting sick time, they don't qualify for disability anyway.

Disability Insurance is paid for, not administered by the company. OP qualifies or would not be receiving. If OP qualifies, they should not get paid twice on the employers buck.

 

[cbg]

Oh yes? And you know this for certain how?

 

[OHRoadwarrior]

Oh yes? And you know this for certain how?

No US state allows an insurance company to exist, that is not a stand alone entity. XYZ Co. can have a sub they own, the XYZ Insurance Co, which provides benefits to all of its US employees. The fully owned sub, is usually a non US entity in a place such as the Bahamas, to avoid a conflict of self insured interest within the sub.

 

[cbg]

You're assuming that all STD benefits come from an insurance company. We self-insure our STD benefits.

 

[OHRoadwarrior]

You're assuming that all STD benefits come from an insurance company. We self-insure our STD benefits.

If that were the case in this situation, OP is still out of luck as employers are not required to provide paid sick days.

 

[cbg]

That much I agree with. It was your across the board declaration as to how STD benefits were paid for/administered that I took issue with.