LOA and Workers' Compensation: What You Need to Know

What Is a Leave of Absence (LOA) in the Workplace?

A Leave of Absence (LOA) is a temporary, authorized break from work granted for reasons such as medical treatment, family care, or personal emergencies. Employers may offer unpaid, paid, or partially paid LOAs depending on company policy and applicable laws.

How LOA Intersects with Workers' Compensation

Workers' compensation provides wage replacement and medical benefits to employees injured on the job. When an employee takes an LOA due to a work‑related injury, the LOA can affect both the amount and timing of these benefits.

1. Eligibility for Workers' Compensation During an LOA

Once an injury is reported and a claim is filed, the employee is generally eligible for workers' comp benefits regardless of whether they are on an LOA. The benefit amount is calculated based on the employee's pre‑injury wage, not the LOA status.

2. Paid vs. Unpaid LOAs and Benefit Continuity

• Paid LOA: If the employer pays the employee during the LOA, the workers' comp wage replacement typically continues, and the employee's total weekly benefit remains unchanged.
• Unpaid LOA: If the employee receives no pay, the workers' comp benefit may cover the lost wages up to a statutory maximum.

3. Timing of Benefits During an LOA

Workers' compensation payments are usually made weekly or biweekly. If an employee is on an LOA, the benefits are processed as if the employee were still working, ensuring no interruption in income.

Employer Responsibilities When an Employee Is on LOA Due to an Injury

1. Maintain Accurate Records

Employers must document the LOA, injury details, and any medical reports to support the workers' comp claim.

2. Coordinate with the Insurance Carrier

Regular communication helps prevent delays. Employers should provide updated medical certificates and return‑to‑work assessments.

3. Follow Return‑to‑Work Policies

Once the employee is medically cleared, employers should facilitate a gradual return, which may involve modified duties or temporary job reassignments.

Common Misconceptions About LOA and Workers' Compensation

• Employees on an LOA are exempt from workers' comp benefits.
• Workers' comp replaces all lost wages, regardless of LOA status.
• LOA automatically suspends workers' comp eligibility.

None of these statements are accurate. Workers' comp benefits are designed to cover wage loss due to injury, independent of an LOA.

Key Takeaways and Practical Checklist

Below is a quick reference for both employees and employers to ensure compliance and benefit continuity.