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As businesses of all sizes begin to comply with Family and Medical Leave Act (FMLA) provisions, many are grappling with the financial and record keeping requirements the act imposes. The additional burden placed on payroll when an employee is out on leave is covered either by overtime or temporary personnel affects the bottom line. Detailed records for each employee must be maintained to determine eligibility, to track the amount and reasons for time taken, and to demonstrate compliance. Finding a workable system to record time taken for FMLA leave and streamline payroll and benefits processing can be an important step in assuring compliance with the act. Automated time accounting systems (ATA) may be part of the solution.
WHAT FMLA PROVIDES
FMLA applies to most employers with 50 or more full- or part-time employees. It provides employees the universal right to up to 12 weeks of unpaid leave for family or medical reasons in any 12-month period.
Leave time requests to care for a newly born, newly adopted or newly placed foster child must be agreed upon by both employee and employer. But employees may take leave without an employer's permission, when medically necessary.
The act requires employers to continue health insurance benefits on any employee covered by FMLA while on leave. Other types of insurance continuance are not covered under FMLA, and employers must advise employees on how to pay their share (if any) of insurance premiums that come due during such absences.
An employee returning from leave can expect to be reinstated in the same position or one equivalent in terms of pay, benefits and other terms and conditions of employment.
WHO IS ELIGIBLE?
One of the first areas to be...