Should I be Outsourcing Leave of Absence Management?
Outsourcing some or all of your leave management programs can be a good solution, specifically regarding compliance, privacy, technology and reporting.
Managing Family Medical Leave Act (FMLA) leave continues to challenge employers. The lack of awareness or misunderstanding of regulations can lead to non-compliance, which can result in possible financial losses due to decreased productivity, fines by the U.S Department of Labor (DOL), employee misuse and legal action.
- The average cost of abuses is over 6% of payroll.
- 66% of employers have difficulty managing intermittent leave.
- Fines can range from hundreds to thousands of dollars from the DOL.
- In 2014, more than 43% of investigations were initiated by the DOL and NOT from employee complaints.
Average productivity losses:
- From planned absences: 37%
- From planned abuses: 23%
- Extended absences: 34%
By outsourcing FMLA administration, employers engage a neutral party to manage claims based on the most current rules and guidelines. This allows for fair and consistent treatment of leaves across all employees and within all company locations.
And because many FMLA claims are related to an employee's own health issues, outsourcing both disability and FMLA have been proven to help promote better absence management outcomes. Some of these outcomes consist of improved productivity, reducing lost time and direct costs.
If you’re looking to learn more on outsourcing leave of absence management, contact a member of the ‘A’ Team – we’re always here to help.
- Outsourcing FMLA: Is it for You?
- Families’ New Employee Benefit: Paid Parent Leave
- Final Rule – FMLA Protections for Same-Sex Spouses
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