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FMLA What You Need To Know. Camille Aziz, CILMA Sedgwick CMS October 3, 2007. Direct Cost of FMLA to Employers. Overall direct cost of FMLA in 2004 was $21 Billion Dollars. This did NOT include the added administrative burden employers faced in tracking and complying with FMLA.

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FMLA What You Need To Know

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FMLAWhat You Need To Know

Camille Aziz, CILMA

Sedgwick CMS

October 3, 2007


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Direct Cost of FMLA to Employers

Overall direct cost of FMLA in 2004 was $21 Billion Dollars. This did NOT include the added administrative burden employers faced in tracking and complying with FMLA.


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$21 Billion in 2004 =

  • Lost productivity due to FMLA cost employers $4.8 billion in profit

  • Employers paid $10.3 billion to replace the workers who took FMLA

  • Employers paid $5.9 billion in healthcare coverage for employees on FMLA

  • Statistics by Employment Policy Foundation Analysis on 04/19/05


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FMLA Usage

  • On average, 14.5% of EE’s in the workforce took FMLA leave during the year 2004

  • 25% of EE’s who used FMLA in the year 2000 used it more than once

  • On average, EE FMLA usage increases 2.5% every year

  • Statistics by Employment Policy Foundation Analysis 04/19/05


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FMLA UsageStatistics by Employment Policy Foundation Analysis Report for the year 2004


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F M L AFamily Medical Leave Act

The act of 1993 allows an eligible EE of a covered employer to take job protected leave for up to a total of 12 work weeks in any 12 months for:

Adoption & Foster Care

Birth of a Child

Care of a Family Member

Employees Own Serious Health Condition


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12 Month Calculation

An eligible employee is entitled to 12 work weeks of job protected leave during any 12 month period for a qualifying FMLA reason.

EMPLOYERS HAVE 4 CALCULATION OPTIONS:

The Calendar Year

Any Fixed 12 Month Leave Year

12 Month Period Measured Forward From a Leave Event

Rolling 12 Month Period Measured Backward from a Leave Event


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Eligibility

An eligible employee is entitled to 12 work weeks of job protected leave during any 12-month period for a qualifying FMLA reason.

AN EE MUST MEET ALL 4 ELIGIBILITY REQUIREMENTS:

12 Months of Service (does not have to be consecutive)

1250 Actual Hours Worked preceding the date of leave

Must have FMLA Hours Available to use

Request must be certified by a health care provider


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What Is A Serious Health Condition?

A Serious Health Condition is any medical condition that makes a person unable to perform the essential functions of their job.

Hospital Care

Absence Plus Treatment

Pregnancy

Chronic Conditions Requiring Treatment

Permanent/Long Term Conditions Requiring Supervision

Multiple Treatments (Non-Chronic Conditions)


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FMLA Types

  • Intermittent FMLA

    • Recurring in scattered and irregular or unpredictable instances. Occurring occasionally, having no pattern or order in time.

  • Consecutive FMLA

    • Regular succession without interruption. More than 3 calendar days with no break in time.


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Who’s Responsible?

The Employer is responsible for designating time off work as FMLA and informing Employees of their rights under FMLA.

The Employee is responsible for the completion of the Medical Certification to be given to the Employer.


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When To Refer An Employee To File For FMLA

  • Absence of more than 3 calendar days due to a medical reason or family care

  • Continued absences for the same reason or condition

  • Continued absences to care for a qualifying family

    member

  • Multiple doctor visits or treatment

  • Anything you suspect that may fall under the definition of a serious health condition


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FMLA As A Benefit

The FMLA statue and regulations make clear that FMLA is NOT intended to be an additional 12 week leave entitlement stacked on top of an employer’s existing leave policies.


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FMLA As A Benefit

  • Neither the EE or the EOR can “waive” or “trade off” their rights under FMLA

  • FMLA should be ran concurrently with:

    • Short Term Disability

    • Long Term Disability

    • Workers Compensation

    • Sick Leave (If FMLA Qualifying)

    • Paid Time Off (If FMLA Qualifying)


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If the Employer knows the reason for the leave is FMLA qualifying but does not designate it as FMLA, the employee is still afforded FMLA protections under the law, so to “save” FMLA leave for “later” means that the employee will likely have more than 12 weeks of FMLA protections.


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Why Track FMLA Concurrent With Your Current Leave Policies?

  • Administration at ease

  • Consistency of application for all EE’s

  • EE’s will exhaust their leave benefits

  • Keeps lost productivity to a minimum

  • Saves you money


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Successful FMLA Management

  • Know what questions to ask and what not to ask

  • Have a consistent policy for FMLA application

  • Have a set timeline for the medical certifications to be returned

  • Review the medical certification form and if not complete, require completion

  • Remain in contact with the employee

  • Manager and Supervisor education

  • Be consistent with all employees


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Questions?

Thank you for the time out of your day and for your attention.

Camille Aziz, CILMA

Sedgwick CMS


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