Employment Law Questions? Ask an Employment Lawyer.
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An employer must not treat an employee differently because he or she took FMLA protected leave. Offsetting severance by disability benefits which the employee electing FMLA leave was already entitled to would be a form of treating an employee differently because of their FMLA leave. Thus, this would most likely be construed as an unlawful practice.
Most likely the best option here would be to retain a local attorney to draft a demand letter threatening a lawsuit for FMLA retaliation. However, if that does not work you can pursue the matter in small claims court. If the amount in controversy is more than 20k or so, a lawsuit in general civil court might also be appropriate.
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