What Small Business Owners Need to Know About FMLA

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As a small business owner, managing employee absences while ensuring productivity can be challenging. One of the key regulations affecting employee leave is the Family and Medical Leave Act (FMLA). Understanding its implications can help employers navigate employee leave smoothly and avoid legal pitfalls.

Whether you’re facing an employee’s extended leave due to family matters or medical reasons, the FMLA creates both obligations and opportunities for business owners to foster a supportive workplace culture that leads to employee loyalty.

What is FMLA and How Does It Work?

Enacted in 1993, the FMLA allows eligible employees to take up to 12 work weeks of unpaid, job-protected leave during a single 12-month period for specified family and medical reasons. It’s important for businesses to properly categorize their employees’ FMLA leave in order to ensure that both the employer and employee meet their legal obligations.

Family Leave

Family leave covers caring for a family member with a serious health condition, bonding with a new child*, and spending time with a family member who is being deployed overseas or returning from deployment. *The law covers leave for the birth of a child, adoption, or foster care placement within one year of the event.

Medical Leave

Medical leave covers taking time off for an employee’s own serious health condition that makes them unable to work, such as an illness, injury, impairment, or a physical or mental condition. It also includes prenatal and postnatal care, along with any related complications.

Military Caregiver Leave

An eligible employee who is the spouse, child, parent, or next of kin of a covered servicemember may use up to 26 workweeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness.

Do I need to provide FMLA?

Yes, under federal employer law, if your business has 50 or more employees within a 75-mile radius, you are legally required to provide FMLA leave to eligible employees. To qualify, employees must have worked at your company for at least 12 months and completed 1,250 hours of service during that time. Employees are entitled to keep their group health benefits during the leave period. Failing to comply with FMLA can result in penalties and legal action, so it’s essential to ensure your policies are in line with the law.

How to Calculate FMLA Leave

Calculating FMLA leave can be complex. Employees can take FMLA leave in a single block of time, or in multiple smaller blocks if medically necessary. For example, an employee might take three weeks of leave for surgery and recovery, or take occasional absences due to chronic pain. They can also take leave on a part-time basis if medically necessary, such as returning to work part-time after surgery.

The amount of FMLA leave an employee is eligible for depends on the number of hours they typically work each week:

  • Full-time employees: Those working 40 hours per week are entitled to 480 hours of FMLA leave (40 hours x 12 weeks).
  • Part-time employees: FMLA leave is calculated based on average weekly hours. For instance, an employee working 30 hours a week is entitled to 360 hours of leave (30 hours x 12 weeks).
  • Employees with variable schedules: Their FMLA leave is based on the average hours worked during the 12 weeks before the leave request.

If leave is taken intermittently or on a reduced schedule, only the actual hours taken count toward the employee’s total entitlement. For example, a 40-hour-per-week employee using 20 hours has used one-half of a week of leave. Employers should apply the same increment size for FMLA leave as they do for other leave types, with the increment not exceeding one hour.

The Impact of Workers’ Compensation on FMLA

If an employee is out on workers’ compensation for a work-related injury or illness, the time off may also count as FMLA leave if the injury meets the FMLA’s definition of a serious health condition. However, the leave is unpaid, and workers’ compensation benefits will apply during this period. Once the workers’ compensation claim ends, the employee may still have FMLA leave available, depending on how much time they’ve already used.

Navigating an Employee’s Return from FMLA Leave

Bringing an employee back from FMLA leave requires careful coordination. Upon their return, the employee must be reinstated to their original job or an equivalent position with the same pay, benefits, and working conditions. Be prepared to engage in open communication about any accommodations or adjustments that may be necessary. It’s also crucial to document all communication and keep records of the leave to avoid any misunderstandings.

FMLA Forms

The U.S. Department of Labor offers optional forms that employers can use to give necessary notices to employees, and that employees can use to certify their need for FMLA leave. These forms are available as fillable PDFs and can be saved digitally. Employers also have the option to use their own forms, as long as they include the same essential notice and certification details.

The Employer’s Guide to the Family and Medical Leave Act offers key insights into the FMLA, covering employer responsibilities and available options for managing leave under the law. Download it here.

How Seay Management Consultants Can Help with FMLA Compliance

Managing FMLA regulations can be overwhelming for small business owners. At Seay Management Consultants, we specialize in helping businesses comply with FMLA and other employer laws, providing expert guidance on everything from leave management to employee accommodations. Our HR services ensure that you’re fully compliant, minimizing legal risks while maintaining a productive and supportive work environment.

Contact Seay Management Consultants today for expert advice and tailored HR solutions.

Let us help you navigate the complexities of FMLA and protect your business.
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