This webinar is the sixth episode of our 2023 webinar series. At URL, we do much more than employee benefits. We also have a Life Markets division, an Annuity Solutions division, a Medicare department that supports Medicare-eligible clients and agents, and our Health Plan Options department, which specializes in individual health insurance and group employee benefits. I’m excited to continue this year’s webinar series. We’ve seen great attendance, engagement, and questions in our recent sessions, and I’m hoping we’ll see the same today. I know FMLA isn’t always the most exciting topic, but our presenter today, Earl, makes it easy to stay engaged.

I’ll go through a few quick housekeeping items and then hand things over to Earl so we can keep things moving and leave time for questions at the end. In the center of your screen, you’ll see the presentation Earl will be walking through. On the right-hand side, you’ll find the chat, Q&A, polls, and handouts tabs. Please feel free to submit questions at any time through the chat or Q&A. We’ll do our best to address them at the end, and if we run out of time, I always follow up afterward.

Under the handouts tab, Earl has shared his presentation, so you’re welcome to download it and take notes as we go. You’ll also find a link to our URL website, where you can learn more about our departments, services, and team. There’s also a link to our webinars page, where you can register for upcoming webinars and access recordings of past sessions. We record all of our webinars so they’re available as a resource for our clients and agents at any time. I often go back myself to review webinars from years past, so I encourage you to take advantage of that.

With that, I’d like to introduce Earl King from Principal. I don’t want to steal too much of his thunder, but Earl has been a great partner of ours for several years. He takes a very collaborative approach, always looking at the group, the agent, and the opportunity to find the best way to deliver value. That aligns closely with what we strive to do here at URL. Earl is extremely knowledgeable, great at what he does, and genuinely a pleasure to work with.

With that, Earl, I’ll hand it over to you.

Thank you, Tom. I appreciate the warm introduction and the kind words. Good morning everyone. My name is Earl King, and I’m the sales representative with Principal Financial Group who works closely with URL. Today’s session focuses on the Family and Medical Leave Act, what it is and how it works.

We’ll start with a high-level overview of FMLA, including who is responsible for providing it and what employers’ obligations are. We’ll cover employee eligibility, how FMLA intersects with the Americans with Disabilities Act, short-term disability, statutory disability, and workers’ compensation. We’ll also discuss some of the common challenges employers face when managing leave programs and share strategies to help ensure compliance. We’ll leave time at the end for questions, and you’re welcome to submit those through the chat at any point.

The Family and Medical Leave Act entitles eligible employees of covered employers to take up to twelve weeks of unpaid, job-protected leave for specific family and medical reasons. The intent of FMLA is to help employees balance work and family responsibilities while ensuring consistency and fairness across the workforce. It allows employees to take time away for medical needs, family care, or parental leave while maintaining job protection. This consistency also helps employers reduce the risk of discrimination claims by ensuring similar situations are handled in the same way.

Employees may take FMLA leave for reasons such as the birth of a child, placement of a child for adoption or foster care, caring for a family member with a serious health condition, or the employee’s own serious health condition. Certain military-related leaves also qualify. In some cases, employees may take up to twenty-six weeks of unpaid leave to care for a covered military service member who is a spouse, child, or parent.

Employers may require medical certification from a healthcare provider to support a leave request. They are also allowed to request second or third medical opinions at the employer’s expense, as well as periodic recertification of a serious health condition.

There are different types of FMLA leave. Continuous leave, which involves taking three or more consecutive days off work, is generally easier to manage. Intermittent leave or reduced-schedule leave can be more challenging. Intermittent leave may be taken in very small increments, sometimes as little as a single minute, and unplanned intermittent leave is frequently cited by employers as one of their biggest challenges. When leave is foreseeable, employees are expected to make reasonable efforts to schedule it in a way that minimizes disruption to business operations, though unplanned leave can still create coverage challenges for employers.

Not all employers are required to provide FMLA. Private employers must have fifty or more employees to be covered. Government agencies and public or private elementary and secondary schools are covered regardless of employee count. To be eligible, employees must have worked for the employer for at least twelve months and have at least 1,250 hours of service during the previous twelve months. The twelve months do not need to be consecutive, and time worked over the past seven years may be aggregated.

Employees must also work at a location where the employer has at least fifty employees within a seventy-five-mile radius. For example, if a company has most of its employees at a main office but maintains small satellite offices located more than seventy-five miles away with fewer than fifty employees, those satellite employees may not be eligible for FMLA. Employers may choose to offer leave in those situations, but they are not required to do so.

There are also special eligibility rules for airline flight attendants and flight crew members due to the unique nature of their schedules. These employees must meet specific pay and hour thresholds to qualify for FMLA.

FMLA itself is unpaid, although some states have implemented paid family and medical leave programs. In states without paid leave, employees may choose to use accrued sick, vacation, or personal time during their FMLA leave. Employers may also require employees to use paid time off concurrently with FMLA to prevent extended leave periods beyond the twelve weeks.

Employers have several responsibilities under FMLA. They must post notices explaining FMLA rights where employees can easily see them and include general information in employee handbooks or internal systems. Employers must continue group health coverage during FMLA leave under the same conditions as if the employee were actively working, although managing employee contributions can be challenging during unpaid leave.

When an employee returns from FMLA leave, the employer must restore them to the same position or an equivalent one with comparable pay, benefits, working conditions, and seniority. While job duties must continue to be covered during the employee’s absence, the employee’s job protection remains in place upon return. FMLA does not protect employees from layoffs or reductions in force, and it does not require employers to allow seniority accrual during leave. Certain highly compensated key employees may not be guaranteed reinstatement.

Employers are prohibited from interfering with, denying, or discouraging the use of FMLA. They may not manipulate work hours to prevent eligibility, use FMLA leave as a negative factor in employment decisions, or count FMLA leave under no-fault attendance policies. These protections are intended to ensure fairness and consistency across the workforce.

Employees also have responsibilities under FMLA. When leave is foreseeable, they must provide at least thirty days’ notice. They must follow the employer’s usual procedures for requesting leave, explain the reason for the leave so eligibility can be determined, and provide required medical certifications within fifteen days of the request.

One of the biggest challenges employers face is that employees are becoming more aware of their rights under FMLA and related state laws. As usage increases, administering leave fairly, accurately, and in compliance with evolving federal and state regulations becomes increasingly complex.

As you can see from the visuals on the screen, FMLA usage continues to increase. More employees are taking leave, which means employers are managing a higher volume of leave requests and must remain consistent and compliant across the organization. This makes proper FMLA administration critically important. The challenge lies in evaluating leave requests, making determinations based on the information received, and applying decisions consistently. These complexities can create significant strain on HR departments as they work to stay compliant.

Several factors contribute to increased FMLA usage. Employee dissatisfaction is one of them, particularly among employees who feel disengaged or unhappy with changing working conditions. We saw this especially during and after the COVID period. Many employees were concerned about job security and, in some cases, turned to FMLA leave out of necessity. While there was certainly abuse in some situations, there was also a very real need for these programs. In response, some employers adopted loosely managed leave programs and defaulted to approving leave requests rather than risk noncompliance. While understandable, that approach can create longer-term challenges.

Another factor is the growing number of employees who fall into what is often referred to as the sandwich generation. These employees are responsible for caring for both aging parents and their own children. As people live longer, caregiving responsibilities increase. I can relate to this personally, as I have teenage children and parents in their seventies. Thankfully, everyone is healthy, but many employees are not as fortunate and may require leave to manage those responsibilities.

Industry-specific factors also influence FMLA usage. In some blue-collar or production-based industries, FMLA leave has historically been misused during disasters such as floods, hurricanes, or tornadoes. In those cases, some employees used protected leave to operate side businesses while retaining job protection. FMLA usage and misuse tend to escalate in industries where attendance is critical and schedules are rigid, making it especially important for employers in those sectors to manage leave carefully.

Mismanagement of FMLA can be extremely costly. Errors in administration have resulted in significant settlements, including cases where managers and supervisors were held personally liable. Beginning in 2010, courts allowed individual liability in certain FMLA cases, and since then there have been multiple six-, seven-, and even eight-figure settlements. These outcomes reinforce the importance of understanding employer responsibilities and maintaining compliance.

It is also important to understand how FMLA integrates with other leave and time-away-from-work programs. In addition to FMLA, there are various state leave laws that may apply. Several states have statutory disability programs, including New York, New Jersey, and California, and more states continue to implement paid family and medical leave programs. Employers with employees in multiple states must navigate different requirements depending on where those employees are located.

The Americans with Disabilities Act also plays a significant role. Under the ADA, employers are required to provide reasonable accommodations to qualified employees with disabilities, which may include a leave of absence. A disability is defined as a physical or mental impairment that substantially limits one or more major life activities, or a history of such an impairment. A reasonable accommodation is a change that enables the employee to perform essential job functions without causing undue hardship to the employer. Leave, schedule adjustments, and workplace modifications can all qualify as accommodations under the ADA.

The ADA Amendments Act, which took effect in 2009, broadened the definition of disability and expanded protections for employees. It clarified ambiguous language and provided additional examples of impairments and major life activities. Enforcement of the ADA falls under the Equal Employment Opportunity Commission, not the Department of Labor, which is an important distinction from FMLA.

When evaluating accommodation requests, employers should consider what limitations the employee is experiencing, how those limitations affect job performance, and which job duties are impacted. Employers should assess whether available resources have been explored and engage in an interactive process with the employee to identify effective accommodations. Once accommodations are implemented, employers should continue to evaluate their effectiveness and determine whether additional adjustments are needed.

FMLA and ADA often intersect, but they are not the same. Approval for FMLA leave does not automatically mean the condition qualifies as an ADA disability. However, when an employee qualifies for FMLA due to a serious health condition, employers should evaluate whether ADA accommodations may also be required. If an employee exhausts FMLA leave, they may request additional leave as a reasonable accommodation under the ADA. Employees are entitled to whichever law provides the greatest protection.

Disability insurance can also play a role. Many short-term and long-term disability policies include workplace modification benefits that can help fund accommodations such as ergonomic equipment or accessibility improvements. While these benefits may not address reduced schedules, they can support other accommodation needs, making it important for employers to understand what is available through their disability carriers.

Short-term disability insurance protects an employee’s ability to earn income when they are unable to work due to illness or injury. While many people associate short-term disability primarily with maternity leave, it serves a much broader purpose. Disability coverage is designed to protect income so employees can continue to pay essential expenses while they are unable to work.

FMLA and short-term disability may run concurrently when the leave is due to a qualifying serious health condition. FMLA provides job protection, while short-term disability provides income replacement. Understanding how these programs align is essential for proper administration.

Workers’ compensation is another distinct program. It is a state-mandated system designed to protect employees injured on the job while shielding employers from litigation. Workers’ compensation typically covers medical expenses and lost wages for work-related injuries. FMLA and workers’ compensation can also run concurrently if the injury qualifies as a serious health condition, though not all workers’ compensation claims meet FMLA criteria. Employees receiving workers’ compensation are generally not eligible for short-term disability for the same injury.

Evaluating leave requests requires asking key questions, including whether the injury is work-related, whether the condition qualifies as a serious health condition under FMLA, and whether the employee has a disability that may qualify for short-term disability or ADA accommodations.

A good example is diabetes. Diabetes may qualify an employee for FMLA if it requires ongoing medical care and results in incapacitating episodes. However, many employees manage diabetes effectively through medication and lifestyle adjustments without needing leave. Diabetes alone typically does not qualify for short-term disability unless it significantly limits the employee’s ability to perform their job duties. Under the ADA, employees with diabetes may qualify for reasonable accommodations such as additional breaks, schedule adjustments, or time to manage blood sugar levels. Each situation is highly individualized, and when in doubt, it is best to file a claim and allow a claims professional to evaluate it.

Employers can use several strategies to better manage FMLA. Connecting employees with available resources, such as employee assistance programs, can help address issues before they escalate into leave requests. These programs offer support for childcare, elder care, financial concerns, and personal challenges, and can be used even when an employee is not disabled.

Maintaining communication with employees during leave, exploring reduced schedules or modified duties, and educating employees about their rights and available resources are all critical components of effective leave management. Many employers also choose to outsource absence management. This has become increasingly common, particularly for larger organizations, as it allows employers to rely on specialists who stay current on changing federal and state regulations and integrate multiple leave programs into a single process.

Using FMLA as an early indicator of potential disability claims can also help employers plan more effectively. When FMLA and short-term disability administration are handled by a single source, employees benefit from consistent communication and a single point of contact. Employers benefit from improved compliance, documentation, and identification of potential abuse.

As FMLA leave nears its end, employers should begin planning next steps several weeks in advance. This includes requesting updated medical information, discussing potential accommodations, and documenting all interactions thoroughly. Employers should also review attendance policies and ensure that termination or disciplinary decisions related to attendance are escalated appropriately and not handled solely at the managerial level.

In closing, employee leave management is complex and involves many moving parts. Laws vary by state, employee situations differ even when conditions appear similar, and requirements continue to evolve. Employers must remain strategic, engaged, and well-documented in their approach. For larger organizations in particular, outsourcing leave administration to experienced professionals can significantly reduce risk and administrative burden.

At that point, I opened the floor for questions. Tom noted how complex FMLA and related leave laws have become, particularly with the rise of remote work and multi-state employment. He highlighted challenges employers face when employees are located outside the traditional seventy-five-mile radius and how state paid family leave laws continue to expand. We discussed how paid family leave programs typically run concurrently with FMLA, adding a paid component while preserving job protection.

We also talked about payroll considerations, including proper state deductions for statutory disability and paid leave programs, and how easy it is for employers to overlook these requirements. Tom emphasized the importance of working with knowledgeable partners and invited attendees to reach out to us as resources.

With no further questions, Tom thanked everyone for attending, reminded participants that the session was recorded and materials were available for download, and closed the webinar. I echoed his thanks and wished everyone a great rest of the day.