Introduction:

Navigating the Family and Medical Leave Act (FMLA) can be complex, especially when considering the nuances of coverage for integrated and joint employers. In this HR Compliance Snapshot, we delve into the distinctions between integrated employers and joint employers, shedding light on their obligations under FMLA.

Integrated Employers: An integrated employer refers to separate businesses that may be considered a single employer for FMLA purposes. This designation arises when these businesses exhibit common management, interrelated operations, and common ownership or financial control. It’s essential to note that employees across all entities forming the integrated employer must be counted for FMLA coverage purposes.

Joint Employers:

Joint employers, on the other hand, arise when two businesses share control over the work or working conditions of an employee. A typical scenario is when a temporary employment agency provides workers to another business. In such cases, both entities are considered joint employers and are responsible for ensuring FMLA compliance for the jointly employed workers. It’s imperative to count these employees for FMLA coverage, even if they are on only one employer’s payroll.

FMLA Coverage Criteria:

FMLA coverage extends to various types of employers. Covered entities include public agencies at the federal, state, and local levels, as well as local educational agencies, including both public and private schools. Additionally, private-sector employers with 50 or more employees during 20 or more calendar workweeks in the current or preceding calendar year fall under FMLA coverage.

Determining the 50-Employee Threshold:

When calculating the 50-employee threshold for FMLA coverage, several factors come into play:

1. Inclusion of Employees: Employers must count all employees working in the United States or U.S. territories, regardless of their employment status (full-time, part-time, temporary, seasonal).
2. Payroll Records: Employees whose names appear on payroll records must be included, irrespective of whether they receive compensation for the workweek.
3. Leave Status: Employees on paid or unpaid leave, with a reasonable expectation of returning to active employment, are also counted.
4. Foreign Firms: Employees of foreign firms operating in the United States contribute to the employee count for FMLA coverage determination.

Once an employer meets the requirement for FMLA coverage, they remain covered as long as they employ 50 or more employees in 20 or more workweeks during either the current or preceding calendar year.

Conclusion:

Understanding FMLA coverage is crucial for employers to fulfill their obligations under the law. Integrated employers and joint employers must carefully assess their organizational structures and relationships with other entities to ensure compliance with FMLA regulations. By adhering to the guidelines outlined in this HR Compliance Snapshot, employers can effectively navigate FMLA requirements and support their employees’ leave entitlements. However, it’s essential to consult legal counsel for precise guidance tailored to specific organizational circumstances.

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