Understanding FMLA and Its Impact on Earnings

When you find yourself on Family and Medical Leave Act (FMLA) leave, it’s natural to worry about how you’ll make money during this time. FMLA is a federal law that allows eligible employees to take unpaid, job-protected leave for certain family and medical reasons. While the leave itself is unpaid, there are several ways you can still generate income while on FMLA. Let’s explore these options in detail.

1. Short-Term Disability Insurance

Short-term disability insurance is a type of insurance that provides a portion of your income if you’re unable to work due to illness or injury. If you have this insurance, it can be a lifesaver while on FMLA. Most short-term disability policies replace about 60-70% of your income, which can help cover your expenses.

Before you apply for short-term disability, make sure you understand the following:

• Eligibility requirements: Not all employers offer short-term disability insurance, so check if your employer provides it.

• Waiting period: There’s usually a waiting period before you can start receiving benefits, which can range from a few days to a few weeks.

• Benefit duration: Short-term disability benefits typically last for a set period, such as 6 to 12 months.

2. Paid Family Leave Programs

Some states offer paid family leave programs that provide partial income replacement for eligible employees who take leave for family or medical reasons. If you live in one of these states, you may be able to receive benefits while on FMLA.

Here’s what you need to know about paid family leave programs:

• Eligibility: Check if you meet the eligibility requirements, such as being employed for a certain period and earning a minimum amount of income.

• Benefit amount: Paid family leave programs typically replace a portion of your income, usually around 60-70%.

• Application process: You’ll need to apply for benefits through your state’s program, which may require you to provide medical documentation and other information.

3. Use Savings and Emergency Funds

If you have savings or an emergency fund, now is the time to use it. While it’s not ideal to dip into your savings, it can help you cover your expenses while on FMLA. Make sure to use this money wisely and try to replenish your savings as soon as you return to work.

Here are some tips for managing your savings and emergency funds:

• Assess your expenses: Create a budget to understand your monthly expenses and determine how much you need to cover during your leave.

• Use the right accounts: Consider using a high-yield savings account or a money market account to earn interest on your savings.

• Monitor your spending: Keep track of your expenses and try to reduce unnecessary spending to extend the life of your savings.

4. Freelancing or Part-Time Work

While on FMLA, you may be able to find freelance or part-time work that allows you to work from home or on your own schedule. This can be a great way to generate some extra income and stay connected to your professional life.

Here are some tips for finding freelance or part-time work:

• Update your resume and portfolio: Make sure your resume and portfolio are up-to-date and showcase your skills and experience.

• Use job search websites: Websites like Upwork, Freelancer, and FlexJobs offer a variety of freelance and part-time job opportunities.

• Network: Reach out to your professional network and let them know you’re looking for freelance or part-time work.

5. Consider a Side Gig

Another option is to start a side gig that can generate income while on FMLA. This could be anything from selling items online to starting a small business. Choose a side gig that aligns with your skills and interests and can be managed on a flexible schedule.

Here are some ideas for side gigs:

• Selling items online: Use platforms like eBay, Amazon, or Facebook Marketplace to sell items you no longer need.