How do most companies handle pay increases while an employee is on a Short-Term Disability Leave ? For example, our company grants pay increases on 1/1. If someone is on STD on 1/1, do most companies wait until the employee returns to work to process the pay increase. Secondly, if the employee returns to work, is the comp change retro-active ?

I cannot say what most companies or even many companies would do, but, it seems cheap and nit-picking not to make the increase effective at the same time as everyone else's.There are so many issues, I wonder why the company would want to consider doing otherwise.

How much money would be involved to cause this to be a concern? What precedent has been set? What was told to the employees at enroolment or otherwise? What is in the employment contract, employee handbook/manual etc? What is in the SPD for the STD?

It also seems that not paying at the same time creates a small problem for Payroll but enough of a problem to be not worth the effort.