Are Employers Required to Continue Employer HSA Contributions When an Employee is on Pregnancy Disability Leave?

SB 299, which went into effect early in 2012, amends California’s Pregnancy Disability Leave Act (PDL). The PDL, which applies to employers with five or more employees, guarantees an employee up to four months’ leave if she is disabled by pregnancy, childbirth, or a related medical condition.

SB 299 makes it unlawful for an employer to refuse to maintain and pay for group health coverage for employees throughout their PDL leave. Employers are now required to maintain group health coverage for employees on PDL leave at the level and under the conditions that coverage would have been provided if the employee had remained working (although the employer need not maintain and pay for coverage beyond four months).

So, the question is, are employers also required to continue employer HSA
contributions if providing to actively employed employees?

According to Roy Ranthum, Mr. HSA, the answer is yes – employers must also continue employer HSA contributions for employees on this specific type of leave.

However, if it is a COBRA leave, the employer is not required to continue contributions.