FMLA Employer Mistakes and What It Could Cost

It’s easier than employers think to violate employee rights under FMLA, leading to a heap of problems that start with a headache and potentially end with massive financial payouts. It’s increasingly important for an organization to ensure their FMLA practices are flawless, and even internationally recognized companies aren’t immune to mistakes. Let’s take a look at some examples of FMLA employer mistakes and violations, and the consequences of improper administration.

Lack of Understanding

Here’s a textbook case of an employer taking action improperly and paying the price. In 2019, an employer fired an employee because they took a vacation to Mexico while on FMLA leave. The result? A court ruled that the employer must pay out $1.3 million for wages, court costs, punitive damages, and emotional distress. So what went wrong? Simply put, the employer had an incomplete understanding of the FMLA rules and made documented, emotionally driven decisions regarding the employee’s requests. The court acknowledged that the employer thought they were following the FMLA’s rules, but that didn’t save them. Lack of expertise cost the company well over a million dollars.

Simple Mistakes

Let’s look at a more recent example from a well-known company. Earlier this year, two former workers for Mercedes-Benz in Alabama were awarded, “…$438,625 in back wages, unpaid bonuses, equitable remedy and liquidated damages.” How did this happen? According to the DOL, a host of failures were involved. The employees were fired after requesting FMLA-protected leave, with several other violations like failure to inform the employees of FMLA leave eligibility in a timely manner, giving notice of FMLA rights and responsibilities as required, and more. Had proper FMLA practices been ensured by a trusted expert, the situation could have been avoided for all parties.