Outsourcing FMLA: Is It for You?
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The Family and Medical Leave Act (FMLA) provides eligible employees with 12 weeks of unpaid, protected leave for specified family and medical reasons. Traditionally, companies have managed this process in-house – though recently we’ve seen a shift to outsourcing this process, specifically with larger employers. Why are companies taking a new approach? And why may it benefit you? Let’s discuss.
First, what actually qualifies an employee? Eligible employees may take up to 12 workweeks of leave for one or more of the following reasons:
- The birth and care of an employee’s newborn child
- The placement of a child in an employee’s family for adoption or foster care
- To care for an immediate family member who has a serious health condition
- For a serious health condition
- For any qualifying exigency arising out of an immediate family member on military covered activity duty
It all seems pretty straight forward, right? Not. Between the laws alone - it’s not uncommon to feel overwhelmed when managing FMLA. What else contributes to the difficulties of self-administering, you ask?
- HR workload
- Tracking time away
- Multi-location sites
- Keeping current/complying with FMLA rules
- Keeping consistent in administration
If you’re a multi-state manufacturer or recycler, the administration process is difficult to keep consistent. With multiple people handling the FML process, it’s easy to do so differently for each situation. The workload alone of completing paperwork, tracking employees’ time away and managing the process of an employee returning to work is quite the project for just one employee!
According to a Society for Human Resource Management (SHRM) study, nearly 80% of HR professionals think FMLA administration is somewhat or very difficult for their organization to handle. If hiring an expert can lessen your employees’ workloads and take compliance issues off your plate, – it’s no wonder employers are leaning towards outsourcing! When taking into consideration if this is a right fit for you, keep in mind compliance exposures, your FML incidence rate/duration and if you’re willing to fully outsource or begin with simply part-time. The alternative could end up being much more expensive. Want to chat more? Contact an employee benefits expert today.
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