Legal Question in Medical Leave in Alabama

Hospital Closing/Lay off while on FMLA, still entitled to severance?

The hospital I work for announced they are closing in 60 days. My FMLA leave (maternity) started the day after the announcement of this closing. My FMLA leave was authorized by my doctor, due to the fact that I have a high-risk pregnancy (expecting triplets). The hospital has announced that employees there through the closing date will be receiving a severance package. I will still be on FMLA leave when it closes, so am I legally entitled to the severance package? It is a week pay for every year employed. I have been there almost seven years.


Asked on 7/23/04, 5:16 pm

1 Answer from Attorneys

Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Hospital Closing/Lay off while on FMLA, still entitled to severance?

This is a complicated question, involving the interaction of two federal laws the FMLA and the WARN Act (Worker's Adjustment and Retraining Notification). While on FMLA, you are not required to be paid. You are however entitled to maintain benefits such as health insurance provided you pay for them. Furthermore, you are entitled to be restored to your position upon return from FMLA and you should not lose any benefits as a result your FMLA leave and should be immediately restored to all benefits without a waiting period. Been there, done that lawsuit. In any event, the question then becomes, will you return from FMLA prior to the closing of the hospital? That should be a slam dunk case - you are entitled to it, and I'd bet a dollar to a doughnut that they will give you your severance.

However, if you are due to return after the close of the plant, the issue is far more complicated. How were you given notice of the closing? Did you just hear a rumor or in the newspaper, or did they send you a letter? Are you sure that you will not be getting the severance? Are you part of a collective bargaining unit?

I think a strong argument can be made that you would be entitled to the severance regardless, but it may not be so open and shut. Please give me a call at 205-458-1100 and I'd be happy to talk with you about this situation; it certainly seems interesting from the legal standpoint.

TIA

Sterling L. DeRamus

Attorney at Law

[email protected]

205-458-1100

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Answered on 7/23/04, 5:34 pm


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