Employers are increasingly faced with significant challenges in effectively managing FML and state leave related absences. Inappropriate administration and mismanagement of absences can cost an employer millions of dollars in revenue, production and legal fees. Today’s employees are becoming more knowledgeable on the use of FML and state leave benefits. As their knowledge and use of these benefits increase, so too will your associated administrative and personnel costs. To combat increasing costs associated with employee absences, it is both financially and administratively critical to have a solid, well governed absence management program in place.
FMLA Non-Compliance Costs of 2011
- According to the Society for Human Resource Management, the average cost to defend a FMLA lawsuit is $78,000 , regardless of the outcome.
- Employees who successfully sued for wrongful termination based on FMLA Absence received on average between $87,500 - $450,000 in damages (Source: EEOC.)
- According to the U.S. Department of Labor, managers and supervisors can be sued directly and held personally liable for paying damages (Shultz v. Advocate Health & Hospitals Corp.)
Are you in Violation?
Among the most frequent FMLA violations is the failure on the part of the employer to notify the employee of his or her FMLA rights. Failure to notify the employee that the leave counted toward the employee’s 12-week entitlement is the second most common violation. Violations like these can be cost employers significant dollars in litigation alone. Other common violations include:
- Taking disciplinary action against an employee for using FMLA
- Failure to grant leave to provide physical care or psychological comfort to a seriously ill parent or child
- Failure to reinstate employees to the same or an equivalent position, including same shift
- Terminating an employee during or at the conclusion of FMLA leave
- Failure to grant FMLA leave because of misunderstanding of what qualifies as a serious health condition
- Failure to request medical certification in writing and not giving an employee at least 15 days to obtain medical certification
(Source: United States Department of Labor)