Take up to 12 Weeks of Unpaid Leave to Bond with a Newborn" width="1030" height="579" />Ever wondered if the Family and Medical Leave Act (FMLA) applies to your small business? You’re not alone! Many small business owners are unsure about FMLA regulations. This can lead to confusion about employee eligibility, compliance requirements, and potential impacts.
This article answers the 4 most frequently asked questions about FMLA for small businesses. By the end, you’ll have a clear understanding of:
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FMLA stands for the Family and Medical Leave Act, a federal law that provides qualifying employees of up to 12 weeks of unpaid time off per year with their job protected.
FMLA regulations can be intricate and complex to navigate, so here’s a breakdown of the main points:
The FMLA allows qualifying employees to take up to 12 weeks of unpaid leave per year for specific reasons. These reasons include:
The employer must offer the time off and allow the employee to return to the same or equivalent position with the same pay and benefits.
Beyond granting leave, employers must:
On top of this, some states have additional leave laws that might apply. It’s important to be aware of these regulations. Understanding your obligations under FMLA helps avoid costly lawsuits, which are becoming more common.
Not all employers are subject to FMLA, so it is vital to know whether you meet its requirements.
For a company to be subject to FMLA regulations, they must:
For an employee to qualify for FMLA leave, they need to meet two key criteria: working for a qualifying employer (covered in the previous section) and fulfilling specific employment requirements.
Here’s what employees must demonstrate:
Additionally, the employee must have a qualifying reason for needing leave. These reasons include:
FMLA offers valuable benefits to employees, but it also has a significant impact on businesses.
Let’s look at the key areas where FMLA can affect your company:
Employees taking FMLA leave can result in temporary staffing gaps and reduced productivity. Studies show that compliance with FMLA “costs employers more than $21 billion in lost productivity, continued health benefits, and labor replacement”.
Not only could FMLA have a large impact on your company’s finances, but it also requires employers to follow specific procedures to remain compliant.
The number of lawsuits filed by employees under FMLA has been rising. FMLA has a lower bar of proof than some other employment laws, meaning employees may have an easier time winning cases if your company fails to comply.
Even if your business has less than 50 employees and isn’t directly subject to FMLA, there are still other employment laws to consider. Wrongful termination lawsuits, discrimination claims, and the Americans with Disabilities Act (ADA) can all pose legal risks and require compliance efforts.
Understanding FMLA is a crucial first step, but navigating its complexities can be daunting. FMLA violations can lead to costly fines and even lawsuits, jeopardizing your business’s financial health and reputation.
To keep your business compliant, it’s key to create clear, consistent FMLA procedures within your company and review them frequently, as well as providing FMLA training. But also, you might consider partnering with a Professional Employer Organization (PEO) that can handle compliance issues for you. That way, you can prevent FMLA-related mistakes from ever happening.
Let our FMLA experts help your business stay compliant. Schedule a consultation today.
