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A company that I work with has recently merged with another company. The merger was official as of 7-1-99. Two ladies in the company are pregnant. They are both approximately four months along in thei
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FMLA & M&As

posted at 7/1/1999 4:06 PM EDT
Posts: 36
First: 7/1/1999
Last: 5/1/2001
A company that I work with has recently merged with another company. The merger was official as of 7-1-99. Two ladies in the company are pregnant. They are both approximately four months along in their pregnancy. One lady worked for the acquired company (Company A) while the other lady worked for the acquiring company (Company B). Company B's policy was to give any employee who was out on FMLA their full salary. Company A's policy was to not compensate employees out on FMLA. The merged company does not want to pay employees who are out on FMLA. Executives of Company B verbally promised the lady working with them to compensate her while she was out on FMLA. The lady with Company A asserts that she is due compensation for FMLA under the merged company, even though her former company did not compensate employees out on FMLA. The merged company does not want to set a precendent in the merged company for paying employees out on FMLA. Both employees are in the same classification. Any suggestions on how to resolve this situation?
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FMLA & M&As

posted at 7/1/1999 8:01 PM EDT
Posts: 2217
First: 6/16/1999
Last: 12/13/2001
Have either of the employees actually started their FMLA leave? It doesn't sound like it from your posting.

The FMLA regs. expressly permit employers to amend leave and employee benefit programs, so long as they comply with FMLA. Thus, it seems to me the merged company (Company C) could amend its program, whether it initially "adopted" the program of Company A or Company B (again, assuming the employees have not yet started their leaves).
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