Q.- We have an employee who was participating in an FSA and then took a leave of absence. We allowed her to stop participating in the FSA when she left. The employee has now returned to work. Can we require that she be reinstated in the FSA and continue contributions?
A.- Maybe. It is not uncommon for an employer to require reinstatement of coverage upon a return from a leave, particularly if the leave is 30 days or less and the employee returns to work within the same plan year. You should strive to apply a consistent policy to all who take leave. If the leave is an FMLA leave, consult your FMLA policy. An employer may mandate reinstatement of coverage upon a return from FMLA leave only if the employer requires reinstatement upon return from a non-FMLA leave.