Question: Should an employer keep requests for donated leave hours anonymous under a catastrophic leave donation program?
Answer: Yes, an employer should keep the identity of the employee who requests donated leave hours anonymous and keep the details of their medical emergency confidential. Employers have a duty to keep an employee’s medical information confidential, including information about why an employee is out on medical leave. Additionally, keeping the requesting employee’s identity anonymous will help an employer defend against any potential discrimination or disparate treatment claims should an employee feel like they received fewer donated leave hours than other employees based on a protected classification. IRS Rev Ruling 90-29 requires donating employees to donate leave hours to an employer-sponsored leave bank, rather than earmarking or designating donations to a particular employee. Since the donated leave hours are placed into one big employer-run catastrophic leave bank, it creates a wall of separation to keep the recipient employee’s identity private.