Navigating the Family and Medical Leave Act (FMLA) can seem daunting, especially if you operate a small business. It is a crucial piece of legislation that supports workers as they balance their professional existences with their personal and family lives. Between interpreting federal rules and ensuring fair policies, the stakes are high in maintaining compliance.
In this guide, we will explain what the FMLA is and the requirements, eligibility, and protections it affords to help your organization stay compliant and support team well-being.
Understanding FMLA for Small Businesses
The Family and Medical Leave Act (FMLA) is a federal law designed to help employees balance work obligations with significant family or health needs. Enforced by the Department of Labor’s Wage and Hour Division, this legislation is integral for covered businesses to understand and implement effectively.
FMLA doesn’t apply to all employers. The law covers businesses with 50 or more employees on the payroll for at least 20 workweeks in the current or preceding calendar year. If your company falls below this threshold, you aren’t required to offer FMLA leave. However, understanding its fundamentals still matters, especially as your business grows or collaborates with larger organizations.
Since its creation in 1993, FMLA’s central purpose has been clear—to provide employees with job security and health benefit protection when personal or family medical needs arise. It helps workers care for newborns, recover from serious illness, or support family members with health issues without fear of losing their jobs or health coverage.
What Protections Does FMLA Offer?
FMLA’s two core protections are:
- Job protection: Employees can return to the same or an equivalent role after FMLA leave.
- Health coverage maintenance: Employers must keep employees on their existing health plan (under the same terms) during their absence.
FMLA also sets clear standards for handling leave requests. When an employee notifies you of a need for FMLA leave, you can request supporting documentation from their health care provider. Employees then have 15 days to deliver the required information to their employer to help them determine whether they qualify.
Employee Eligibility Criteria
To qualify for FMLA leave, an employee must:
- Have worked for your organization for at least 12 months
- Accrue at least 1,250 hours of work in those 12 months (about 25 hours a week)
- Work at a location where at least 50 employees are employed
Leave may be requested for their own or a qualifying family member’s serious health condition, for the birth or adoption of a child, or to care for a family member with a serious illness. Leave is not automatic and must meet the FMLA’s covered conditions.
Types of Leave and Protections
FMLA provides up to 12 weeks of unpaid, job-protected leave each year. However, its flexibility extends to different scenarios beyond a single, continuous absence.
- Continuous leave: Up to 12 consecutive weeks (for a severe illness, birth, or adoption) of unpaid leave.
- Intermittent or reduced schedule leave: Shorter periods or adjusted work hours, often for recurring treatments or caregiver needs (e.g., regular medical appointments for a chronically ill dependent).
Paid Leave Integration
While FMLA leave is unpaid, if your business offers paid sick or vacation days, you may require employees to use available Paid Time Off (PTO) during their FMLA leave. This approach ensures consistency and helps manage overlapping benefits without penalizing employees. Qualifying employees on leave may be eligible to file Short- or Long-Term Disability through their insurance providers to receive up to 60% of their wages.
Tips to Ensure FMLA Compliance
Compliance is essential to protect your business from costly disputes and maintain employee trust.
Here’s a structured approach:
Display Required FMLA Notices
Every covered employer must prominently display a general notice outlining employee rights under the FMLA. This notice must be accessible to all employees and job applicants, typically posted in break rooms or other common spaces.
Communicate FMLA Eligibility
Promptly notify employees about their FMLA eligibility when they request leave or when you become aware of a qualifying condition. Provide written explanations of how much leave is available and whether their circumstances meet the criteria covered. Clear communication prevents confusion and sets expectations.
Provide Designation Notices
After receiving a completed leave request, formally inform the employee whether their leave has been approved or denied. If payroll deductions, benefit premiums, or required certifications are needed, include those details in writing. This documentation helps avert misunderstandings and legal exposure.
Include FMLA in Handbooks and Onboarding
Ensure that your employee handbook covers FMLA entitlements, procedures, and contact information for HR support. Integrating this information into onboarding for new hires ensures universal awareness and forms a documented record of communication.
Standardize FMLA Procedures
Establish uniform processes for managing FMLA requests. Develop clear protocols for HR managers and supervisors so all employees are evaluated using the same criteria, ensuring fairness and legal compliance.
Request Certification from Health Care Providers
When FMLA leave is requested for medical reasons, you can require certification from a licensed health care provider. This step verifies that the situation meets FMLA requirements and safeguards your business against abuse of leave policies.
Manage Return-to-Work Certifications
If an employee has taken FMLA leave for their own serious health issue, you may request a release from their doctor before they return. This protects both your organization and the employee by ensuring they are fit to perform the essential functions of their position.
Handle Benefit Premiums During Leave
Maintain employees’ job-related benefits during FMLA leave but ensure a clear process for continuing premium payments. Regularly review and communicate these arrangements so coverage remains uninterrupted.
Coordinate Paid Leave Options
Work with employees to align their use of FMLA leave with any paid leave options your company offers. Clarity here improves financial planning for both your staff and the business.
Partnering With Experts for FMLA Compliance
Staying on top of FMLA compliance is vital but can be complex, especially for managers juggling multiple responsibilities. Professional Employer Organizations (PEOs) like ABO bring expertise in federal and state regulations, supporting your business with tailored guidance and reliable documentation.
ABO is an IRS-certified PEO that assists companies in drafting effective policies, updating handbooks, and providing required FMLA signage. Outsourcing compliance guides your team, reduces your risk of violations, and allows you to focus on core business growth. Their experts will assess your current practices, help you implement robust documentation, and enable you to focus on growth instead of paperwork.
Reach out to ABO today to learn more about how we can help!
