Understanding FMLA: Employer Obligations Explained

FMLA is one of the most complex employment laws to administer correctly. Mistakes lead to lawsuits — FMLA-related claims are among the top three reasons employees sue their employers. This guide covers everything you need to know as an employer: who's covered, who's eligible, what qualifies, and how to manage the process without violating the law.

Is Your Business Covered by FMLA?

Not all employers are covered. FMLA applies to:

• Private employers with 50 or more employees within a 75-mile radius
• Public agencies (federal, state, local government) regardless of size
• Public and private schools regardless of size

The 50-employee threshold is counted for at least 20 workweeks in the current or preceding calendar year. Part-time employees count toward the 50 — what matters is the total number on payroll, not hours worked.

Employee Eligibility Requirements

Even at a covered employer, not every employee qualifies. An employee is eligible for FMLA leave if they meet all three requirements:

What Qualifies as FMLA Leave?

Eligible employees can take FMLA leave for these reasons:

1. Birth, Adoption, or Foster Care Placement

Leave for the birth of a child, placement of a child for adoption or foster care, and to bond with the new child. Must be taken within 12 months of the birth or placement.

2. Serious Health Condition (Employee)

Leave when the employee has a serious health condition that makes them unable to perform their job. This includes inpatient care, continuing treatment requiring absence of more than 3 consecutive days, pregnancy-related incapacity, chronic conditions, and permanent/long-term conditions.

3. Serious Health Condition (Family Member)

Leave to care for a spouse, child, or parent with a serious health condition. Note: in-laws, siblings, and grandparents are not covered under federal FMLA.

4. Military Family Leave

Qualifying exigency leave: Up to 12 weeks for issues arising from a family member's active military duty (childcare, financial arrangements, counseling, etc.).

Military caregiver leave: Up to 26 weeks in a single 12-month period to care for a covered service member with a serious injury or illness.

Employer Obligations: What You Must Do

✅ Required Notices

1. General notice: Post the FMLA poster in a conspicuous location (required even if you have no eligible employees)
2. Eligibility notice: Within 5 business days of learning of the need for leave, notify the employee whether they're eligible
3. Rights & responsibilities notice: Inform the employee of their rights and obligations (can combine with eligibility notice)
4. Designation notice: Within 5 business days of having enough information, notify the employee whether the leave qualifies as FMLA

✅ Job Protection

When the employee returns from FMLA leave, you must restore them to the same position — or an equivalent position with equivalent pay, benefits, and other terms. You cannot demote, transfer, or reduce pay because they took FMLA leave.

✅ Health Insurance Continuation

You must maintain the employee's group health insurance during FMLA leave under the same terms as if they were still working. If the employer pays 80% of premiums normally, they must continue paying 80% during leave. The employee is responsible for their share.

✅ No Retaliation

You cannot fire, discipline, demote, or take any adverse action against an employee for requesting or taking FMLA leave. This is the most common source of FMLA lawsuits.

Intermittent FMLA Leave

FMLA leave doesn't have to be taken all at once. Intermittent leave allows employees to take leave in separate blocks of time for a single qualifying reason. For example:

• Weekly chemotherapy appointments
• Flare-ups of a chronic condition (migraines, back pain, depression)
• Ongoing physical therapy sessions

Intermittent leave is the hardest type to manage. Key rules:

• You can require the employee to provide a medical certification
• You can require recertification every 30 days
• You can temporarily transfer the employee to an equivalent position that better accommodates recurring absences
• You cannot deny intermittent leave for a qualifying medical condition

Common FMLA Mistakes Employers Make

1. Not recognizing FMLA-qualifying leave — even if the employee doesn't say "FMLA," you must recognize qualifying reasons
2. Counting FMLA leave as an attendance violation — FMLA absences cannot be held against an employee
3. Requiring employees to find their own coverage — you can't condition FMLA leave on finding a replacement
4. Terminating during FMLA leave — unless you can prove the termination was for reasons completely unrelated to the leave
5. Not tracking FMLA hours — you need to track hours used against the 12-week (480-hour) entitlement

FAQ

How many employees must a company have to be covered by FMLA?

50 or more employees within a 75-mile radius for at least 20 workweeks in the current or preceding year. This applies to private employers, public agencies, and schools.

Can an employer deny FMLA leave?

Only if the employer isn't covered (fewer than 50 employees), the employee isn't eligible (less than 12 months of service or 1,250 hours), or the reason doesn't qualify. You cannot deny leave to an eligible employee for a qualifying reason.

Does an employer have to pay an employee on FMLA leave?

No — FMLA provides unpaid leave. However, employers can require employees to use accrued paid leave (PTO, sick, vacation) concurrently with FMLA. Health insurance must continue during leave.