When it comes to the Family and Medical Leave Act (FMLA), there is no gray area – by law, you must track it.
Unfortunately, many companies still treat FMLA compliance as optional, only addressing issues when an employee complaint, a Department of Labor inquiry, or costly legal action arises. No employer wants to face these situations.
If your organization employs 50 or more employees within 75 miles of each other, FMLA applies. No exceptions.
The Basics of FMLA
On paper, FMLA appears to be straightforward: employees are entitled to up to 12 weeks of unpaid, job-protected leave in a 12-month period. During this leave, the employee’s group health benefits stay intact. When the employee returns from leave, they should be placed back into the same or an equivalent role.
Coverage applies to public agencies, schools, and private employers with 50 or more employees within a 75-mile radius. To qualify, an employee must have worked for the organization for at least 12 months – not necessarily consecutively – and logged 1,250 hours in the past year.
Qualifying reasons for leave are also seemingly clear: the birth or adoption of a child, caring for a family member with a serious health condition, or addressing one’s own serious health issue.
On paper, FMLA seems manageable. In practice, it is much more complicated.
Where FMLA Gets Complex
The process of managing FMLA is where complications arise. Employers must issue and track extensive federal forms, including the Notice of Eligibility (WH-381), Certification of Health Care Provider (WH-380), and Designation Notice (WH-382). Overlooking even one can undermine compliance. Employer-specific rules, such as requiring PTO or sick time before unpaid leave, make reconciling balances more complex. Predictable mistakes that can occur include:
- Double-counting hours (crediting FMLA and PTO at the same time)
- Miscalculating rolling 12-month eligibility
- Overstating PTO balances
- Losing track of leave usage altogether
Even large employers often rely on spreadsheets to manage leave – an approach that significantly increases compliance risk.
Manual Tracking Creates Unnecessary Risk
Treating FMLA as an administrative afterthought is not only risky, but it can also damage your organization’s reputation and erode employee trust.
Employees already dealing with health or family crises shouldn’t have to question whether their employer is accurately tracking leave. Mismanaged FMLA can destroy morale and organizational culture while opening the door to litigation.
It can also be expensive. The cost of a single tracking mistake can far outweigh the perceived savings of manual systems like spreadsheets.
The Smarter Solution: Automate Leave Management
Modern Human Capital Management (HCM) platforms make it easy to get FMLA tracking right. CBIZ’s Centrally HR solution includes a fully integrated leave management system that:
- Automatically applies eligibility rules.
- Embeds required forms.
- Maintains accurate PTO and sick balances – even when company policies force employees to burn those balances first.
Centrally HR gives HR teams enhanced visibility, compliance reporting, and peace of mind. Employees benefit from increased consistency and transparency, and executives avoid being blindsided by fines, audits, or lawsuits.
Connect with CBIZ to Explore Leave Management Automation Solutions
Continuing to manage FMLA manually is a gamble that organizations are unlikely to win. Compliance is not optional, and mistakes are costly.
CBIZ and Centrally HR’s fully integrated leave management system can help protect your organization, support employees, and help ensure compliance without slowing down operations.
To learn more about Centrally HR, connect with us today.
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