Skip to Main Content

Impacted by wildfires or winter weather? Whether you have a business that's been affected or your personal home and assets are damaged, know that you have a team of people to support you. Find resources here.

October 21, 2025

What happens when an employee exhausts their FMLA entitlement and remains unable to work?

Learn how to manage employee leave when FMLA ends, including ADA accommodations and extended leave options under The Family and Medical Leave Act.

The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave for qualifying reasons—such as their own serious health condition or to care for a family member¹. But what if your employee uses all 12 weeks and still can’t return to work? This situation can be complex for both you and your employee, depending on the reason for leave and the laws that apply.

This article outlines key considerations when an employee remains unable to work after exhausting FMLA leave. We focus on two common scenarios: (1) leave for the employee’s own serious health condition, and (2) leave to care for a family member. We also discuss extended leave options, potential impacts on benefits, and how you might manage these situations.

Scenario 1: Employee’s own serious health condition — what about the ADA?

If your employee uses all 12 weeks of FMLA leave for their own serious health condition but still cannot return, your responsibilities may extend beyond FMLA. You may want to consider other leave options, including state or local laws that might offer more leave than FMLA, or any company leave policies you have, such as a medical leave of absence.

If the employee is ineligible for, or has exhausted, any state/local or company-provided leave options, the Americans with Disabilities Act (ADA) may come into play. The ADA requires employers to engage in an interactive process to determine whether a reasonable accommodation, such as additional leave, is appropriate.

What to consider:

  • Review all leave options: Check if your employee qualifies for state, local, or company leave policies that cover their condition. 
  • Engage in the interactive process: Employers should initiate or continue the interactive process with the employee to explore accommodations that would enable the employee to perform the essential functions of their job. Alternatively, the employer may need to consider how long the employee needs to remain out, and whether extending the employee’s LOA may be considered a reasonable accommodation.
  • Consider the length of leave: The ADA does not set a fixed limit on extended leave, but you are generally not required to provide indefinite leave. Understanding your employee’s expected return date can help determine if extending leave is reasonable. 
  • Understand job protection: If you extend leave as an accommodation, your employee typically has the right to return to their original job. However, if keeping the job open causes undue hardship for your business, you may need to explore other options or, in some cases, deny the extension. 
  • Review short-term disability benefits: These benefits may end when protected leave runs out. However, if your employee has an approved claim, benefits might continue even after their employment ends, depending on the policy.

Scenario 2: Leave to care for a family member

If your employee uses all FMLA leave to care for a family member, the ADA generally does not apply because the employee is not the individual with the disability³. Your obligations then depend on state or local leave laws and your company’s leave policies.

Extended leave options:

  • State and local laws: Some states and localities provide additional unpaid or paid family leave entitlement beyond the 12 weeks under FMLA. These often run concurrently with FMLA, when applicable but can give your employee extra time off. 
  • Company leave policies: You may have caregiver leave or personal leave policies that provide additional time. Review these policies and check how they protect your employee’s job during extended leave. 
  • No extra leave available: If no laws or policies provide more leave, your employee’s leave ends after FMLA is exhausted. Any further absences may be unprotected. 

How extended leave may affect employee benefits

When an employee stays out after FMLA leave, benefits can become more complex.

  • Health insurance: Under FMLA, you must maintain the employee’s group health coverage as if they were working. After FMLA ends, continuing coverage depends on your policies, state laws, or COBRA rules. If the leave is unpaid, you may bill the employee for premiums or collect payments when they return. 
  • Other benefits: Retirement contributions, paid time off, and bonuses might be affected by extended leave. Whether these continue depends on state laws or your company’s policies.

Practical tips for employers

To manage situations where employees exhaust FMLA leave but cannot return, consider these best practices:

  • Understand applicable laws: Familiarize yourself with federal, state, and local leave rules that might provide additional leave or benefits. 
  • Engage in interactive process: For employees with their own serious health condition, initiate the ADA conversation early to explore reasonable accommodations. 
  • Maintain communication: Keep open lines with your employee about leave status, benefits, and return-to-work plans. 
  • Document thoroughly: Keep records of leave requests, medical certifications, accommodation discussions, and benefits communications. 
  • Review and update policies: Ensure your leave and accommodation policies reflect current laws and clearly explain procedures for extended leave.

Exhausting FMLA leave does not necessarily end your employee’s leave rights or your responsibilities. You will need to balance FMLA, ADA, state and local laws, and your company policies to manage extended leave. Clear communication, good documentation, and understanding the rules can help you support your employee while protecting your business.

How Marsh McLennan Agency can support you

Marsh McLennan Agency’s Absence, Disability, & Life Practice provides guidance to help you navigate complex leave and accommodation challenges. We work with you to develop strategies that support compliance and effective leave management. Contact us today. 

References 

¹Family and Medical Leave Act (FMLA), U.S. Department of Labor
²Americans with Disabilities Act (ADA), U.S. Equal Employment Opportunity Commission
³EEOC Guidance on ADA and Family Care

This information is provided for general informational purposes only and should not be considered legal, tax, or employment advice. Please consult your own legal or compliance advisor for advice specific to your situation.
 

Contributor

Placeholder Image

Jim Jantz, JD

Director of Compliance – Absence, Disability, & Life