Continued Pay – State Plan Employer
If you continue to pay your employee during the disability period, benefits may be reduced or denied depending on the type of continuation pay, the amount paid and the period for which the payment is made.
Generally speaking, vacation pay, sick pay and regular wages allocated for a period during the disability will affect entitlement. If you pay the claimant any continuation pay, you must provide the exact beginning and ending dates for which those payments were made, the gross amounts and the type of pay.
Please note that the law allows for the payment of supplemental benefits to your employee without a reduction in benefits.
Continuation pay must always be reported to the disability office so that proper entitlement can be determined.