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March 21, 2005

Opinion Letter Released by Department of Labor Provides Input on Counting Temp Workers for FMLA

The Department of Labor (DOL) released an opinion letter, on November 7, 2004, regarding Family and Medical Leave Act of 1993 (FMLA) pertaining to the use of temporary employees in the workforce and whether employers should count them toward the FMLA "50 or more employees" coverage test.

 

In the letter, the DOL reviewed several concepts that are critical in determining who is counted toward the coverage test.First, an employer must determine if the employment relationship exists "as distinguished from a contractual one".Then determine if the employees (as opposed to contractors) have a continuing employment relationship with the employer.

 

Both the temporary agency and the employers, for FMLA rules, may be required to consider employees hired through a temporary help agency.The final determination on this may depend upon the facts of the case.

 

The DOL stated, "Generally, a joint employment relationship will be considered to exist where:

  • There is an arrangement between employers to share an employee's services or to interchange employees;
  • One employer acts, directly or indirectly, in the interest of the other employer in relation to the employee;
  • The employers are not completely disassociated with respect to the employee's employment and may be deemed to share control of the employee, directly or indirectly, because one employer controls, is controlled by or is under common control with the other employer.

 

Essentially, the opinion found that if a temporary employee is working on a weekly basis for an employer, that employee could then apply under FMLA for both employers when counting employees.

 

FMLA allows employees to balance their work and family life by taking reasonable unpaid leave for certain family and medical reasons. This law provides certain employees up to 12 work weeks of unpaid, job-protected leave a year, and requires the employer to maintain insurance coverage during the leave under the same conditions as before the leave occurred.

 

To be eligible for FMLA leave, an employee must work for a covered employer and:

  • Have worked for that employer for at least 12 months;
  • Have worked at least 1,250 hours during the 12 months prior to the start of the FMLA leave;
  • Worked at a location where at least 50 employees are employed or within a 75- mile radius.

 

A covered employer must grant an eligible employee up to a total of 12 work weeks of unpaid leave in a 12-month period for one or more of the following reasons:

  • The birth of a son or daughter, and to care for the newborn child;
  • The placement with the employee of a child for adoption or foster care, and to care for the newly placed child;
  • Care for an immediate family member (spouse, child, or parent -- but not a parent "in-law") with a serious health condition;
  • When the employee is unable to work because of a serious health condition.

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