20 Years Later, is FMLA Working?

It's hard to believe that the FMLA (Family and Medical Leave Act) was signed into law 20 years ago. How has the FMLA impacted employers, workers and their families?

The Department of Labor recently conducted a survey addressing that very question. According to the report, the FMLA has had a positive effect on the lives of workers and their families without imposing an undue burden on employers, and has created very little disruption in the workplace.

Here are some key findings from the survey:

• 91% of employers report that complying with the FMLA has had either a positive effect or no noticeable effect on employee absenteeism, turnover and morale
• 85% of employers report that complying with the FMLA is very easy, somewhat easy, or has no noticeable effect
• Nearly 60% of employees meet all criteria for coverage and eligibility under FMLA
• 13% of all employees reported taking leave for a FMLA reason in the past 12 months
• 24% of leave taken for FMLA reasons is intermittent leave
• Fewer than 2% of employees who take intermittent leave are off for a day or less
• Fewer than 2% of covered worksites reported confirmed misuse of FMLA
• Fewer than 3% of covered worksites reported suspicion of FMLA misuse.

Small to medium sized firms reported very little difficulty in administering FMLA. Larger employers, however, reported more problems: 3% said that administration was "very difficult" and 29% said administration was "somewhat difficult."

Half of employers surveyed reported that administration of FMLA is becoming more expensive.

Intermittent leave (two or more episodes of leave for the same reason) has been one of the key FMLA concerns for employers. Employee responses indicate that only about 3% took any intermittent leave. Employers have a somewhat different perspective on intermittent leave. Reports of the negative effects of intermittent leave on profitability and productivity were as high as 25%.

According to Mary Beth Maxwell, Acting Deputy Administrator for the Wage and Hour Division:

The significance of the FMLA is in its recognition that workers aren't just contributing to the success of a business, but away from their jobs they are contributing to the heath and well-being of their families. Our survey results show that, for two decades, granting job-protected leave has been good for employers and good for millions of workers and their loved ones. The FMLA is working.

Based on the results of this survey, "it appears that employee use of leave and employers granting and administration of leave has achieved a level of stability."

FMLA is a complex area riddled with potential pitfalls. But it seems that 20 years later, employers have a pretty good handle on administration. What do you think? Is FMLA working? 

Stephanie R. Thomas is an economic and statistical consultant specializing in EEO issues and employment litigation risk management. Since 1999, she's been working with businesses and government agencies providing expert quantitative analysis. Stephanie's articles on examining compensation systems for internal equity have appeared in professional journals and she has appeared on NPR to discuss the gender wage gap. Stephanie is the founder of Thomas Econometrics Inc., the host of The Proactive Employer radio show, and author of the upcoming book Compensating Your Employees Fairly: A Guide to Internal Pay Equity. Follow her on Twitter at @proactivemployr.

Comments

[Rory Trotter]

Stephanie, thanks for sharing this. The FMLA is a landmark piece of legislation that - for all of its problems - has lead to the betterment of the work environment for most employees.

Lots of good data here. I look forward to continuing to read.

Thanks for sharing, and keep writing.

Best,

Rory

[jimbo]

I'd say it's a mixed bag. We had to have specialists to deal with it. There are still too many loopholes. We have had employees go for a visit overseas to their home country and conveniently become ill and have to stay longer. No trouble getting a doctor's note there!

But worse is intermittent leave. You can't plan for that! So next time you are on hold longer than usual, it may be because someone used their intermittent leave - again for the 20th time this year.

[Shawn Miller]

I found this a thoughtful article and forwarded it to the head of our Disability Management Team. Following are his comments:

"As the article revealed, organizations with smaller employee populations find FMLA fairly simple to administer and manage. For larger organizations like (us), the intermittent leaves are challenging to manage and track. Intermittent leaves require daily monitoring and tracking of days used and/ or restored. For those on extended disabilities where FMLA runs in tandem with the leave it’s less difficult.

The bigger challenge is addressing suspected abuse of FMLA. I’d say (our) suspected abuse is somewhere between 4 to 5%. Leadership throughout the company would also tell you that FMLA intermittent leaves create scheduling issues because the absences are unpredictable. In general, FMLA is one of the leading complaints we receive from leadership throughout the company.

Although I understand the legislative intent of the law and benefit to those who truly need the coverage, FMLA by design has added a great deal of complexity to claims management. I would disagree with the author’s comments that employers 20 years later have a “good handle on administration” of FMLA. To the contrary, recent amendments (over the last 5 years) has increased administrative issues for employers trying to adjust to new EEOC regulations and law changes resulting from unfavorable court decisions."