Do you believe in life after leave?

When an employee exhausts FMLA leave, ¹Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq. many employers view that moment as a natural endpoint. The legally mandated, job-protected leave has been provided, the position has been held, and the expectation is that the employee either returns to work or is separated. Increasingly, however, that moment is not the end of the analysis, but a turning point where ADA²Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. obligations take center stage.

This scenario is increasingly playing out across industries, including in banking and financial institutions, where attendance, consistency and in-person operations are emphasized. An employee with a “serious health condition”³The FMLA define a serious health condition as an illness, injury, impairment, or physical/mental condition involving inpatient care (overnight stay) or continuing treatment by a healthcare provider. It generally covers conditions lasting more than three (3) consecutive days, chronic conditions (e.g., migraines, asthma), or pregnancy. (29 CFR § 825.113 and 29 CFR § 825.115) exhausts FMLA and, rather than returning to their role as-is, they will request an accommodation for a “qualifying disability” pursuant to the ADA.⁴The ADA defines a qualifying disability as a physical or mental impairment that substantially limits one or more major life activities, a record of such impairment, or being regarded as having such impairment (42 U.S.C. § 12102(1)). More and more, employees are seeking accommodations such as remote work, a reduced schedule, modified duties or additional time off. Employers often view these accommodation requests as the employee’s attempt to extend leave that has already been exhausted. While that reaction is understandable, it creates considerable legal risk.

The FMLA and ADA operate in distinct ways. While the FMLA provides qualifying employees with a defined, time‑limited entitlement to leave, the ADA requires an individualized assessment of whether a reasonable accommodation would enable the employee to perform the essential functions of a position. Accordingly, the exhaustion of FMLA leave does not end an employer’s obligations and often serves as the point at which an ADA analysis should be initiated.

One of the most common points of tension arises when employees request remote work following a leave of absence. In banking, where several roles are customer-facing, involve team coordination or require access to onsite systems, employers may instinctively conclude that remote work is not reasonable. That may ultimately be correct, but the conclusion must be informed by a careful evaluation of the role’s essential functions, not simply past practice or preference. Job descriptions, actual duties and how the role has been performed in comparable situations all matter.

At the same time, the ADA does not require employers to provide the employee’s preferred accommodation. This is a critical point that is often misunderstood. The obligation is to provide reasonable accommodation that enables the employee to perform the essential functions of the job, not necessarily the one the employee requests or prefers. If remote work is not practical, but a modified schedule, temporary adjustment of duties or a structured return to work plan would be effective, the employer is permitted to provide such alternative accommodation. What matters is the employer engaged in the interactive process and provided meaningful accommodation that allows the employee to perform the core responsibilities of the position.

The exhaustion of FMLA leave does not end an employer’s obligations.

Where employers most often encounter risk is not in denying a specific request for accommodation, but in how that decision was made. Moving too quickly from FMLA exhaustion to termination, failing to engage in a genuine interactive process, or allowing individual managers to shut down requests without HR involvement can all create exposure. Inconsistent handling across employees, particularly in multi-branch or decentralized offices, can further undermine otherwise defensible decisions.

The interactive process at this stage should be active, documented and focused on practical solutions for employers and employees alike. That means asking questions, evaluating the medical information provided, considering the realities of the role and exploring alternatives. It also means clearly communicating with the employee about what will and will not work, and why.

For employers, the transition from FMLA to ADA is less about extending leave and more about shifting the framework of the analysis. When handled thoughtfully, it allows employers to balance operational needs with legal compliance. When handled reflexively, it can turn an otherwise straightforward employment decision into a much more complicated and completely avoidable legal issue. When FMLA ends, it may feel like the conclusion of the process. In reality, it is often the point where the most important decisions are just beginning.

Information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues.

• 1
  Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.
• 2
  Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.
• 3
  The FMLA define a serious health condition as an illness, injury, impairment, or physical/mental condition involving inpatient care (overnight stay) or continuing treatment by a healthcare provider. It generally covers conditions lasting more than three (3) consecutive days, chronic conditions (e.g., migraines, asthma), or pregnancy. (29 CFR § 825.113 and 29 CFR § 825.115)
• 4
  The ADA defines a qualifying disability as a physical or mental impairment that substantially limits one or more major life activities, a record of such impairment, or being regarded as having such impairment (42 U.S.C. § 12102(1)).