Family and Medical Leave Act: Employer Costs and Court Cases

Introduction: The FMLA and Its Core Provisions

Under the guarantees of the Family and Medical Leave Act (FMLA), an employee who takes FMLA leave is entitled to maintain health benefits coverage. An employee may pay the employee's share of the premiums on a current basis or pay upon return to work.

An employee who takes qualifying leave is also entitled to restoration to the same or an equivalent position upon returning to work — what the Act describes as the right of "restoration of employment." These twin guarantees of continued health coverage and job restoration form the foundation of the FMLA's protections.

Legislative History and Demographic Rationale

The history behind the FMLA reflects the government's growing belief that reform in employer-guaranteed benefits was needed to meet the changing needs of American families, driven by shifting demographics in the workforce and society. The findings of the Act itself state:

(1) the number of single-parent households and two-parent households in which the single parent or both parents work is increasing significantly; (2) it is important for the development of children and the family unit that fathers and mothers are able to participate in early childrearing; (3) the lack of employment policies to accommodate working parents can force individuals to choose between job security and parenting. (Alfred, 1995)

The demographic shift was described in strong language in the Senate Report:

"The effect of these demographic changes has been far reaching. With men and women alike as wage earners, the crucial unpaid caretaking services traditionally performed by wives — care of young children, ill family members, aging parents — has become increasingly difficult for families to fulfill. When there is no one to provide such care, individuals can be permanently scarred as basic needs go unfulfilled. Families unable to perform their essential function are seriously undermined and weakened. Finally, when families fail, the community is left to grapple with the tragic consequences of emotionally and physically deprived children and adults." (Hayes, 2001)

As a result, the FMLA was drafted to fill in the gaps between other existing benefits legislation, including Title VII of the Civil Rights Act, the 1978 Pregnancy Discrimination Act (PDA), and the 1990 Americans with Disabilities Act (ADA).

Employer Costs and Business Concerns

Dispute has arisen over the enforcement of the FMLA because of the costs it imposes on employers. While no employer wants to take an anti-family stance, the costs of maintaining an employee's position while that employee is on extended leave are enormous. The employer must either hire temporary workers to fill the position or persuade laterally positioned employees to absorb the additional workload for a short period.

In the case of temporary workers, the employer must absorb training costs. Then, once the regular employee returns, the employer's investment in the temporary worker — who may have barely settled into the role after twelve weeks — is lost when that worker is displaced. The resulting employee turnover can disrupt company productivity, harm customer service, and ultimately have a long-term effect on the company's competitive position.

While the needs of the employee and their family are important both to the community and to the health of the company, the profitability of the company remains the primary reason for its existence. Government policy that adversely affects a company's ability to operate efficiently and profitably is likely to face legal challenges.

Conclusion: Balancing Work, Family, and Individual Rights

As can be understood from the cases above, and the changing needs of employees alongside the ongoing demands of American capitalist business, this legislation has attempted to become a regulating valve in the ongoing tension between family and work. While a healthy business cannot function without healthy employees, a business also needs its employees present and working in order to operate. In the same way, family breadwinners cannot raise a family without a stable income.