From the February 2008 issue of Ceridian Connection

In today's complex world of benefits, employees and employers need a translator to understand the many requirements of FMLA, COBRA, FLSA, HIPAA and other acronyms that make up what's known as benefits alphabet soup.

When it comes to leave of absence administration, companies must keep up with the many rules and regulations associated with tracking 2.8 million lost days a year due to employee injury and illness (U.S. Bureau of Labor Statistics). And just when benefit administrators think they have it figured out, changes to the Family and Medical Leave Act (FMLA) make their jobs even more challenging.

Lost in translation
Employers understand how important it is to find the right balance between managing their workforce and complying with regulations while still enabling their employees to take the leaves they need. However, employers also say it's becoming more difficult to administer and track leaves while navigating the ever-changing laws and policies.

In a 2003 survey by the Society of Human Resource Management (SHRM), respondents identified the two most challenging activities related to the Family and Medical Leave Act. These are the tracking and administering of intermittent FMLA leave and determining the costs incurred while complying with the requirements of the law. Another common grievance with FMLA is the difficulty and variations in defining a "serious medical condition." Half of the human resource professionals surveyed indicated they granted FMLA requests that they felt weren't legitimate, simply because the definitions were open to too much interpretation. This not only sets a negative precedent in the workplace, but is costly as well.

The growing number of administrative and legal complexities related to leaves of absence prompts many companies to seek help from Ceridian. "It's very challenging for employers to administer and comply with changing rules and regulations involving leaves of absence," says Ronnie Bragen, Ceridian Leave Administration product manager. "We use professional legal counsel to identify and interpret the laws and implement them into our program. For example, we're keeping close tabs on a bill in Congress that would allow spouses, children, parents or next of kin to take 26 weeks of unpaid leave to care for their loved one. Since the bill is expected to pass, we're already developing the changes necessary to help our clients comply with this new aspect of FMLA."

Employers who are not FMLA compliant or do not treat all employees consistently under FMLA are at risk of legal action from employees who are denied FMLA or terminated for attendance issues. An estimated 40 percent of all companies are not in compliance with FMLA. And the U.S. Department of Labor's Wage and Hour Division reports the cost to defend one FMLA lawsuit -- regardless of outcome -- is estimated at $78,000.

As the workforce ages, the number of employees taking leaves to care for themselves and their aging loved ones is expected to rise. The increasing number of leaves, along with increasing complexities and changes to the laws, will make it even more difficult to manage the process.

An end-to-end solution
Employers are looking for ways to relieve the burden of administering FMLA absences and tracking the resulting time off. Ceridian provides employers with an end-to-end solution that integrates leave administration services with time and payroll systems from the moment a leave is requested to when a paycheck is delivered -- and everything in between. "Our Leave Administration product can be combined with our Time & Labor Management solution for full integration of employee leave, absence and time management -- providing employers with a seamless experience across all time and labor management needs," Bragen notes.

Daily exchange of data provides maximum accuracy in calculating leave eligibility and entitlement, automates the application of FMLA absences to employees' time and payroll records and integrates all absence data giving employers a single view of absence management reporting.

New this year, employees and their managers can access entitlement hours online to find out how much leave time they have used or have remaining for FMLA and other leaves. Employers also can export reports in Excel to easily sort and compare data. The service hours for Ceridian's Leave Administration customer support have also been extended.

"When employers turn over their leave of absence administration to us, they are apt to increase profitability, improve productivity, enhance employee satisfaction, mitigate compliance risk and reduce controllable absences," Bragen explains. "Plus, their valuable time is freed to focus on their business priorities and strategic initiatives."

For more information about Ceridian Leave Administration and Ceridian Time & Labor Management solutions, contact your Ceridian representative.