1. (1) An employee may use accrued leave benefits to supplement the workers' compensation benefit.

   1. (a) The combination of paid leave, wages, and workers' compensation time-loss benefit may not exceed the gross pay the employee would have received if the accident had not intervened.

   2. (b) An employee may not use accrued leave to supplement the workers' compensation benefit when:

      1. (i) the employee is declared medically stable by a licensed medical authority;
      2. (ii) the workers compensation fund terminates the benefit;
      3. (iii) the employee refuses to accept appropriate employment offered by the state; or
      4. (iv) the employee is notified of approval for Long Term Disability or Social Security Disability benefits.
   3. (c) An employee shall refund to the state any accrued leave paid which exceeds the gross pay the employee would have received if the accident had not intervened.
2. (2) Workers' compensation hours count for purposes of annual, sick, and holiday leave accrual while the employee is receiving a workers' compensation time-loss benefit for up to six months from the last day worked in the regular position.
3. (3) Health insurance benefits continue for an employee on leave without pay while receiving workers' compensation benefits. The employee is responsible for the payment of the employee share of the premium.
4. (4) If an employee can return to work in the employee's regular position, management shall place the employee in the previously held position or a similar position at a comparable salary range.
5. (5) If an employee cannot return to work in the regular position, or if documentation from one or more qualified health care providers clearly establishes that the employee has a permanent condition preventing the employee from returning to the last held regular position, management may separate the employee from state employment unless prohibited by state or federal law. Exceptions may be granted by the agency head in consultation with DHRM.
6. (6) Management shall take disciplinary action under Rule R477-11 when an employee files a fraudulent workers compensation claim.

KEY: holidays, leave benefits, vacations

Date of Last Change: January 21, 2026

Notice of Continuation: March 9, 2022

Authorizing, and Implemented or Interpreted Law: 34-43-103; 39-3-1; 63G-1-301; 63A-17-106; 63A-17-504; 63A-17-505; 71A-8-102(3)