FMLA Lawsuits Are Excluded From the OMAG Municipal Liability Protection Plan (MLPP)

Did you know that damages under the FMLA are strictly defined and measured by actual monetary losses? Emotional damages, pain and suffering, and punitive damages are not compensable under the FMLA.  Generally speaking, the actual monetary losses include back wages, employee benefits, liquidated damages and other equitable relief. 

This is important to note because OMAG’s Municipal Liability Protection Plan (MLPP) states that “we have no obligation to pay nor do we have an obligation to defend any suit or claim for damages which is contained in any Exclusion, herein.” 

Damages is defined as “money, monetary judgment, award or settlement, but does not include statutorily imposed fines, penalties, treble damages or liquidated damages, multiples of compensatory damages, punitive or exemplary damages, or any claim seeking injunctive or equitable relief.”

Exclusion 16 of the MLPP states OMAG is not obligated to pay or defend any claim or judgment that might be rendered against a member for employee benefits.  The MLPP defines employee benefits as group life insurance; group accident and health insurance; pension plans; workers’ compensation; unemployment insurance; social security; disability benefits; wages, whether as a claim for back wages or legal penalties or front wages, overtime compensation, future benefits, severance obligations or similar demands, even if designated as liquidated damages; or other employee compensation or benefits which are required under state or federal law, municipal ordinance, resolution or collective

Because the recoverable damages in an FMLA lawsuit are employee benefits, wages and liquidated damages, the MLPP excludes FMLA lawsuits from coverage.    

With that said, we encourage our members to send all Complaints and Amended Complaints to OMAG whether you think there is coverage or not.  If the Complaint  includes other causes of action that are covered, OMAG may defend the lawsuit under a reservation of rights.

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