Can an employer cancel company paid health insurance in California while the employee is on FMLA maternity leave?

In California, employers generally cannot cancel company-paid health insurance while an employee is on leave under the California Family Rights Act (CFRA), which includes maternity leave. Under CFRA, employers must continue to provide the employee with the same level of health coverage they had prior to leave, and must pay the employee's share of the premiums during the leave period. For employers with more than 50 employees, the employer must also maintain the level of group health benefits in the health plan for the same period of time as the employee's leave.

However, there are some exceptions to this general rule. For example, an employer can cancel health insurance if the employee's employment is terminated for reasons unrelated to the leave, such as gross misconduct or a reduction in force. Also, if an employer has less than 25 employees, the general rule outlined in the previous paragraph does not apply and the employer is able to change or cancel health benefits for any employee, including an employee on leave, so long as the policy is applied uniformly to all employees. It is important for employees to review the specific terms of their employer's policies and applicable state law to determine their rights and responsibilities related to health insurance during family and medical leave.

In addition to the CFRA requirements, employers in California must also comply with the federal Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA requires employers to offer continued health insurance coverage to employees who lose their job or have their work hours reduced, including those who take FMLA leave. COBRA coverage is typically more expensive than employer-sponsored health insurance, and employees are responsible for paying the full premium.