Can short-term disability or company paid leave run alongside FMLA in Texas?
Yes, and it usually should. Concurrency is governed by your own policy, which is why the policy has to be explicit.
Last updated: August 02, 2026
Direct Answer
Yes, short-term disability and company paid leave can generally run concurrently with FMLA leave in Texas. FMLA provides job-protected unpaid leave, while short-term disability and company paid leave offer income replacement or paid time off. Employers must coordinate these benefits carefully to meet compliance requirements and clearly communicate expectations to employees.
Controlling authority: DOL Fact Sheet #28 (revised March 2025). Eligibility is 12 months of service, 1,250 hours, and 50 employees within 75 miles — but public agencies and schools are covered regardless of headcount.
Concurrency is a policy decision the law permits
FMLA entitles eligible employees to up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Short-term disability and company paid leave programs are separate benefits that provide wage replacement or paid time off during an employee’s absence. When these run at the same time, employers must track both to ensure compliance with FMLA’s requirements without creating confusion or operational gaps.
In practice, this means an employee on FMLA leave may also receive short-term disability payments or use company paid leave if your policies allow it. However, FMLA leave designation must be clear and consistent, and the employer cannot require use of paid leave unless policy or law permits it. Clear documentation and communication are crucial to avoid misunderstandings and maintain defensibility.
Benefit continuation obligations do not pause
What I see employers miss is the operational complexity behind tracking multiple leave types simultaneously. Paper policies might allow concurrent use, but managers often lack the tools or training to document this properly. This disconnect can lead to inaccurate leave balances, missed FMLA notices, or inconsistent application of policies that frustrate employees and invite liability.
Another common oversight is failing to update employees regularly on how their short-term disability or paid leave impacts their FMLA entitlement. Without practical frameworks, the employee experience becomes confusing, which harms engagement and risks grievances. Employers should ensure that both leadership and HR teams understand the interplay and communicate transparently.
| Question | The test | Where employers get it wrong |
|---|---|---|
| Is the employer covered? | Private sector: 50 or more employees in 20 or more workweeks in the current or previous calendar year | Public agencies are covered regardless of headcount, as are public and private elementary and secondary schools. A five-person city department is covered. |
| Has the employee worked 12 months? | Need not be consecutive | Prior service usually counts; USERRA service counts toward both months and hours. |
| 1,250 hours in the previous 12 months? | Actual hours worked, not hours paid | Paid leave and holidays do not count toward the 1,250. |
| 50 employees within 75 miles of the worksite? | Measured from the employee’s worksite | Remote employees are measured from the site they report to, not their home. |
| How much leave? | 12 workweeks; 26 workweeks for military caregiver leave | Measured in the employee’s own workweek — a 32-hour employee gets 32 hours a week for 12 weeks, not 40. |
Where concurrent benefits go wrong
Mismanaging concurrent short-term disability, paid leave, and FMLA can trigger serious operational and legal risks. Here are the main red flags employers should monitor closely.
- Failing to track leave usage accurately across programs
- Inconsistent communication on leave entitlements to employees
- Incorrectly designating or failing to designate FMLA leave
- Requiring paid leave use without clear policy basis
- Lacking documentation of leave approvals and correspondence
Reconcile the plan documents with the handbook
Employers should review their leave policies and processes to ensure they explicitly address how short-term disability and company paid leave run alongside FMLA. This includes confirming that FMLA designation procedures are clear and integrated with payroll and benefits systems to avoid discrepancies. Training for managers on these intersecting leave types is a practical step to reduce errors.
Also examine your communication templates and employee notifications. Are employees receiving timely, plain-language updates on their leave status and rights? Documentation protocols must be robust, capturing all leave approvals, denials, and changes. This creates a defensible record if questions arise internally or through external audits or disputes.
PTO Payout Policy Exposure Checker
Tests what your written policy actually commits you to pay out.
When benefits and leave conflict
Get HR consulting support when you identify gaps between your leave policies and actual practice, or when managers struggle to manage overlapping leave programs. Expert help can tailor your policies to Texas-specific realities and integrate compliance with operational needs effectively.
Also seek advice if you face repeated employee confusion, grievances, or inconsistent FMLA designations. Early intervention can prevent costly disputes and turnover by improving clarity, accountability, and employee trust through better systems and leadership training.
Ensure Your Leave Policies Work Together Seamlessly
Faulkner HR Solutions helps Texas employers design and implement compliant, practical leave management systems that align FMLA with short-term disability and paid leave. Contact us to reduce risk, improve leadership accountability, and support your workforce effectively.
Get HR SupportThis page provides general HR information for employers and is not legal advice. For legal interpretation or representation, consult qualified employment counsel.