Employment Law Questions? Ask an Employment Lawyer.
I was about to answer that this was legal, because of course FMLA does not apply to employers with less than 50 employees, until I read the "what have you tried so far" portion of your response wherein you state that employer originally granted you this time off under FMLA, but is now trying to rescind that and demand payback of insurance it would be liable for under FMLA. You could file a charge with the Department of Labor for this. The regulations clearly state where an employee is harmed by an employer's mismanagement of FMLA designation there is a hampering of FMLA rights and the employer can be on the hook for the economic damages suffered by the employee - in your case being insurance premiums that you wouldn't have incurred had they done it properly in the first place.
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