Ceridian ready for revised FMLA guidelines: what employers and employees can expect
From the January/February 2009 issue of Ceridian Connection
On November 17, 2008, the U.S. Department of Labor published its final rule to implement changes to the Family Medical Leave Act (FMLA). The weighty regulations -- 762 pages in length -- bring about the first overhaul of FMLA since it was signed into law in 1993 by former President Bill Clinton. The amended regulations, effective January 16, 2009, provide new tools and guidelines to administer leaves effectively, protect employees' private information and FMLA rights, and allow employers to require that employees follow consistent processes to qualify absence under the FMLA. The revised regulations also include improvements in the area employers have identified as the most problematic -- potential abuse of intermittent leave rights.
To leverage the new tools resulting from the new regulation, employers need to update FMLA policies and forms and communicate more effectively, both verbally and in writing, with employees.
"To take advantage of the benefits of the new regulations, employers have to do a better job of communicating with their employees about what the employees' rights and responsibilities are under FMLA," said Ronnie Bragen, Ceridian product manager. "And employees must do a better job providing the information on time that the employer has specified in order to protect their FMLA rights."
FMLA at a glance
The regulatory changes to FMLA are complex and lengthy. Some of the most notable changes of the new legislation:
Beyond the tools and guidelines to administer leaves, the regulations also clarify general areas of concern to employers that are outside the leave administration process, but that may impact an organization's policies and procedures. For example, employers will have a duty to reinstate an employee's health insurance when they return to work if the employer has allowed the employee's health insurance to lapse due to the employee's failure to pay their share of the premium.
"There is a general feeling in the business community and HR world that the new regulations are helpful, but that there will be challenges in implementing them," noted Jim O'Connell, Ceridian's executive consultant in Washington, D.C. "The FMLA revisions will involve greater complexity for employers. While there are improvements in the underlying regulatory scheme, all will be subject to technical implementation, compliance and administrative requirements."
O'Connell went on to cite changes associated with the definition of a serious health condition, the foundation of FMLA.
"Previously the employee had to have two visits to a health care professional to qualify under FMLA, but the new regulations require that the visits have to occur within 30 days of the beginning of the incapacity," he explained. "This is the type of change that employers will have to address administratively. There are now more discrete stipulations."
"Ceridian engaged in a comprehensive audit of our leave administration system, processes and procedures to determine impacts of the final rule and ensure compliance with the amended FMLA," added Bragen. "Changes were instituted to technology and administrative process to provide integrated accommodation of FMLA as well as state job protected leave laws that mirror, or in some cases, expand on the FMLA."
Without a doubt FMLA is a major compliance obligation and, in the midst of today's economic uncertainty, attendance and productivity can be the keys to a company's survival. To make matters even more challenging, companies also are facing amendments to the Americans with Disabilities Act, which became effective January 1, 2009.
Ceridian's Leave Administration solution can help by providing centralized management of your employees' requests for leave and ensuring you are effectively using all the tools and guidelines in compliance with FMLA and state leave laws. Ceridian's HR Compliance Reference System can provide you with resources to audit the global FMLA changes affecting your HR policies and procedures to pinpoint where and when changes are needed. Address the new FMLA regulatory changes with confidence. Contact your Ceridian representative for more information.
On November 17, 2008, the U.S. Department of Labor published its final rule to implement changes to the Family Medical Leave Act (FMLA). The weighty regulations -- 762 pages in length -- bring about the first overhaul of FMLA since it was signed into law in 1993 by former President Bill Clinton. The amended regulations, effective January 16, 2009, provide new tools and guidelines to administer leaves effectively, protect employees' private information and FMLA rights, and allow employers to require that employees follow consistent processes to qualify absence under the FMLA. The revised regulations also include improvements in the area employers have identified as the most problematic -- potential abuse of intermittent leave rights.
To leverage the new tools resulting from the new regulation, employers need to update FMLA policies and forms and communicate more effectively, both verbally and in writing, with employees.
"To take advantage of the benefits of the new regulations, employers have to do a better job of communicating with their employees about what the employees' rights and responsibilities are under FMLA," said Ronnie Bragen, Ceridian product manager. "And employees must do a better job providing the information on time that the employer has specified in order to protect their FMLA rights."
FMLA at a glance
The regulatory changes to FMLA are complex and lengthy. Some of the most notable changes of the new legislation:
- Clarify that an employee, in order to substitute paid leave for FMLA leave, must comply with the employer's policy regarding the paid time off even if the requirements are more stringent than FMLA notice requirements.
- Specify the increments in which leave must be tracked, the conditions under which multiple absences must be tracked as a single leave event, and the conditions under which recertification of a leave can be required.
- Establish that bonuses, awards, or other payments based on the achievement of a specified goal, such as perfect attendance, may be denied if an employee has not met the goal due to FMLA leave.
- Allow an entire missed shift to be charged against FMLA leave when it is physically impossible for an employee to begin the shift late, such as working on an airline flight that has already taken off.
- Allow an employer to delay or deny FMLA leave when an employee fails to comply with the employer's notice and procedural requirements unless unusual circumstances occur.
- Require employers to provide employees with a general notice about FMLA through a poster or employee handbook upon hire (electronic delivery of the general notice requirements may be allowed).
- Provide details on the parameters of the military leave provisions including special requirements for managing leave to care for an injured service member and a comprehensive list of what constitutes an "exigency" that qualifies for leave.
Beyond the tools and guidelines to administer leaves, the regulations also clarify general areas of concern to employers that are outside the leave administration process, but that may impact an organization's policies and procedures. For example, employers will have a duty to reinstate an employee's health insurance when they return to work if the employer has allowed the employee's health insurance to lapse due to the employee's failure to pay their share of the premium.
"There is a general feeling in the business community and HR world that the new regulations are helpful, but that there will be challenges in implementing them," noted Jim O'Connell, Ceridian's executive consultant in Washington, D.C. "The FMLA revisions will involve greater complexity for employers. While there are improvements in the underlying regulatory scheme, all will be subject to technical implementation, compliance and administrative requirements."
O'Connell went on to cite changes associated with the definition of a serious health condition, the foundation of FMLA.
"Previously the employee had to have two visits to a health care professional to qualify under FMLA, but the new regulations require that the visits have to occur within 30 days of the beginning of the incapacity," he explained. "This is the type of change that employers will have to address administratively. There are now more discrete stipulations."
"Ceridian engaged in a comprehensive audit of our leave administration system, processes and procedures to determine impacts of the final rule and ensure compliance with the amended FMLA," added Bragen. "Changes were instituted to technology and administrative process to provide integrated accommodation of FMLA as well as state job protected leave laws that mirror, or in some cases, expand on the FMLA."
Without a doubt FMLA is a major compliance obligation and, in the midst of today's economic uncertainty, attendance and productivity can be the keys to a company's survival. To make matters even more challenging, companies also are facing amendments to the Americans with Disabilities Act, which became effective January 1, 2009.
Ceridian's Leave Administration solution can help by providing centralized management of your employees' requests for leave and ensuring you are effectively using all the tools and guidelines in compliance with FMLA and state leave laws. Ceridian's HR Compliance Reference System can provide you with resources to audit the global FMLA changes affecting your HR policies and procedures to pinpoint where and when changes are needed. Address the new FMLA regulatory changes with confidence. Contact your Ceridian representative for more information.
