An employee’s medical leave can create difficult decisions for employers, especially when an absence continues longer than expected. While businesses must manage staffing needs and maintain operations, terminating an employee who is on short-term disability (STD) can create legal risks if the decision is not carefully evaluated.

Short-term disability benefits are not the same as job protection. STD generally replaces a portion of an employee’s income during a qualifying medical absence. Whether the employee’s job is protected depends on other applicable laws, employer policies, CBA, and the circumstances of the absence.

Before considering termination, employers should determine whether the employee qualifies for leave under the Family and Medical Leave Act (FMLA). Eligible employees may receive up to 12 weeks of job-protected leave for qualifying medical reasons. Eligibility depends on the employer’s coverage and the employee’s length of service, hours worked, and work location.

The Americans with Disabilities Act (ADA) may also apply. Employers generally covered by the ADA must consider reasonable accommodations for qualified employees with disabilities. Depending on the circumstances, additional leave, modified duties, or another workplace adjustment may be reasonable. Employers are not necessarily required to provide indefinite leave, but they should evaluate the employee’s situation before making a final decision.

When an employee’s absence creates operational challenges, employers should take the following steps:

• Review applicable protections. Confirm FMLA eligibility and consider ADA obligations, state and local laws, and company leave policies.
• Communicate with the employee. Request appropriate information about work restrictions and the anticipated duration of absence while protecting confidential medical information.
• Explore reasonable accommodations. Consider whether additional leave or another accommodation could allow the employee to return to work.
• Apply policies consistently. Ensure the decision is based on legitimate business considerations rather than the employee’s medical condition or protected leave.
• Document the rationale. Maintain records of communications, accommodation discussions, staffing concerns, and the reasons supporting the decision.

Each situation requires an individualized review. Even when an employee does not qualify for FMLA leave or has exhausted available leave, other legal obligations may remain.

Before terminating an employee with an ongoing medical condition, consult HR or employment counsel to evaluate the risks and ensure the decision is legally defensible.