Navigating FMLA Administration Trends: What Employers Need to Know

As we move further into 2025, employers continue to face a dynamic landscape when it comes to Family and Medical Leave Act (FMLA) administration. With recent changes in labor laws, regulatory updates, and evolving workplace needs, staying compliant with FMLA requirements is more challenging than ever. The administrative burden is significant, and managing these complexities can be overwhelming for many organizations.

FMLA Administration Trends

In this article, we’ll explore the recent developments in FMLA administration that employers should be aware of and discuss how partnering with a third-party FMLA administrator like BASIC can help you streamline the process and remain compliant.

Expanded Paid Leave and State-Specific Changes

State vs. Federal FMLA: Employers must distinguish between state-specific paid leave and federal FMLA leave. In some cases, employees may be eligible for both, leading to confusion about whether leave is paid or unpaid.

Tracking Multiple Leave Programs: Managing multiple leave policies (federal FMLA and state-specific paid leave) can become burdensome. Employers must ensure they are tracking the correct type of leave taken and maintaining compliance with each state’s regulations.

Recent Focus on Mental Health Conditions

Qualifying Conditions: Employers must understand that mental health conditions can now more easily qualify for FMLA leave, especially when they involve hospitalization, ongoing treatment, or significant impairment in daily activities.

Documentation and Privacy: As mental health is a sensitive topic, employers must be careful when requesting medical documentation to support FMLA leave. It’s crucial to ensure privacy and avoid violating employees’ rights under HIPAA or FMLA regulations.

FMLA Eligibility and Coverage for Remote/Hybrid Employees

Defining Worksite for Remote Employees: Remote workers may have different worksite definitions than in-office employees, which could affect their eligibility for FMLA.

Accurate Time Tracking: Remote work can make it difficult for employers to track hours worked and determine whether an employee meets the 1,250-hour threshold. Accurate timekeeping systems are crucial to ensuring compliance.