BEST PRACTICES For LEAVES
BEST PRACTICES For LEAVES Mel Diaz, Area Senior Vice President Arthur J. Gallagher & Co. Catherine M. Lauria, Director of Business Services West Northfield SD 31 Moderator – Michael A. Engel, Business Manager Burbank SD 111
Types of Leaves
• FAMILY MEDICAL • MATERNITY / CHILDREARING • UNPAID • SABBATICAL • OTHER
Management Focus – Internal vs Outsourcing COMPLEXITIES OF MANAGING FAMILY MEDICAL LEAVE o SICK o VACATION o PERSONAL o UNPAID
FMLA Outsourcing Concerns of HR Professionals • • • • • • •
49% -‐ FMLA 13% -‐ COBRA 12% -‐ Fair Labor Standards 8% -‐ HIPPA 8% -‐ Americans with Disabili[es Act (ADA) 5% Occupa[onal Safety and Health Act (OSHA) 5% Employee Re[rement Income Security Act (ERISA)
(The HR.BLR.com/Compensa[on.BLR.com poll)
FMLA Outsourcing Facts and Sta[s[cs • Between 4% and 10% of U.S. employees are absent on any given day. (Employee Benefits News) • It takes employers an average of 2.5 hours to manage a single FMLA case. (SHRM) • It cost employers an average of $78,000 to defend an FMLA lawsuit (U.S. Department of Labor Wage and Human Resource Division) • 60% of FMLA lawsuits are decided in favor of the employee (U.S. Department of Labor) (The HR.BLR.com/Compensa[on.BLR.com poll)
FMLA Outsourcing Challenges of FMLA Administra[on • 47% record keeping/tracking use of leave • 32% determining what cons[tutes a serious health condi[on • 31% communica[on with health care providers • 29% coordina[ng FMLA with Workers Compensa[on and Disability Benefits (DOL FMLA Survey Data))
FMLA Outsourcing Benefits of Outsourcing • • • •
Consistency Compliance Reduce Administra[on expense Reduces li[ga[on exposure/risk avoidance
FMLA Outsourcing Best Prac[ces to Outsourcing -‐ Technology • Counts [me by federal, state, local requirements and company paid/unpaid policies • Streamlines eligibility determina[on • Captures complex intermigent leave scenarios • System programmed for accuracy and administra[ve ease • State of the art call center and telephone technology • Ability to capture ROI – denied leaves
FMLA Outsourcing Best Prac[ces to Outsourcing -‐ Processes • • • • •
Management of medical cer[fica[on Medical escala[on (managing complex issues) Legal escala[on (keeping employer informed of “red flags” Structured return-‐to-‐work process Intermigent absences managed to cer[fica[on
Tips for Curbing FMLA Abuse • Don’t provide FMLA to employees who are not en[tled • Don’t provide FMLA for reasons not covered under the Act • Count all FMLA-‐qualifying absences towards the 12-‐ week en[tlement • Require adequate medical cer[fica[ons to substan[ate serious health condi[on • Manage intermigent leave properly
Determine Procedures • Forms – Rights – FMLA Forms – Dr. Note upon return
• Contract Terms • Calendar type – Rolling – Fiscal Year – Calendar Year
FMLA – IniKal Steps • • • •
Ini[al Contact Contact Business Office – determina[on/info Submit leave request for approval Tenta[ve Schedules – Calendar – Payroll Memo – Insurance Payments
Customize School Calendar for Each Employee Type ABC School District 12345 2013 - 2014 A ugus t 2 013 MON
T UE
WE D
S eptember 2 013
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
9
10
11
12
13
16
17
18
19
24
25
26
19
20
21
22
23
23
26
27
28
29
30
30
T o tal
10
T o tal
N o v ember 2 013 MON
T UE
WE D
O c to ber 2 013 MON
T UE
WE D
T H UR
FRI
1
2
3
4
7
8
9
10
11
20
14
15
16
17
18
27
21
22
23
24
25
28
29
30
31
19
T o tal
D ec ember 2 013
T H UR
22
J anuary 2 014
FRI
MON
T UE
WE D
T H UR
FRI
1
2
3
4
5
6
MON
T UE s no w day
WE D
T H UR
FRI
1
2
3
8
9
10
4
5
6
7
8
9
10
11
12
13
s no w day
11
12
13
14
15
16
17
18
19
20
13
14
15
16
17
18
19
20
** 2 1 **
22
23
24
25
26
27
20
21
22
23
24
29
30
31
T o tal
15
** 2 6 ** **2 5 ***
27
28
29
T o tal**
17
30
s no w s no w day day
31 T o tal
15
10 Week FMLA Request ABC School District 12345 2013-2014 Employee A - Tentative FMLA
Requesting 10 wks FMLA
S eptember 2 013
O c to ber 2 013
A ugus t 2 013 MON
T UE
WE D
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
9
10
11
12
13
16
17
18
19
20
24
25
26
27
19
20
21
22
23
23
26
27
28
29
30
30
T o tal
10
T o tal 11 s ic k
N o v ember 2 013 MON
T UE
WE D
T UE
WE D
T H UR
FRI
1
2
3
4
3
7
8
9
10
11
4
1
14
15
16
17
18
5
2
21
22
23
24
25
6
28
29
30
31
19
T o tal
0 unpd
18 s ic k
T H UR
FRI
7
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
5
6
7
8
8
9
10
11
12
13
11
12
13
14
15
9
16
17
18
19
20
18
19
20
** 2 1 **
22
10
23
24
25
26
27
27
28
29
30
31
T o tal** 15
unpd
17
22 4 unpd
J anuary 2 014
4
0 s ic k
MON
D ec ember 2 013
1
** 2 6 ** **2 5 ***
Due Date - 9/16/13 Return Date - 12/2/2013
T o tal
15
MON
T UE
s no w s no w day day 13
14
20 21 s no w s no w day day
WE D
T H UR
FRI
1
2
3
8
9
10
15
16
17
22
23
24
29
30
31
T o tal
15
Include Impact on Earnings F ebruary 2 014 MON
T UE
WE D
M arc h 2 014
T H UR
FRI
MON
T UE
WE D
A pril 2 014
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
1
2
3
4
3
4
5
6
7
3
4
5
6
7
7
8
9
10
11
10
11
12
13
14
10
11
12
13
14
14
15
16
17
18
17
18
19
20
21
17
18
21
22
23
24
25
24
25
26
27
28
24
25
28
29
30
T o tal
18
31
T o tal
20
M ay 2 014 MON
T UE
WE D
** 19 ** ** 2 0 ** **2 1** 27
28
T o tal**
16
26
J une 2 014
53,500.00
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
s ic k
29
1
2
2
3
4
5
6
unpd
19
9
10 las t day
to tal
48
5
6
7
8
9
12
13
14
15
16
19
20
21
22
23
26
27
28
29
30
T o tal
21
T o tal
297.22
5,647.22
7 180 days
** 11/2 1 a n d 11/2 5 wo rk f u ll d a y + e v e n in g c o n f e re n c e = o f f o n 11/2 6 ** 3 /19 a n d 3 /2 0 wo rk f u ll d a y + e v e n in g c o n f e re n c e s -‐ o f f o n 3 /2 1
Payroll Memo ABC School District 1234 MEMORANDUM Date:
September 30, 2013
To:
Teacher A
From:
Mary Smith, Payroll Coordinator
RE:
2013-14 Family Medical Leave
In an effort to clarify the manner in which your paychecks will be affected due to your family medical leave and the error on your last check due to the addition of your deduction instead of the subtraction, we have outlined below the recalculations used to determine your pay for the 2013-14 school year.
The f ollowing l eave dates apply:
September 16, 2013 through November 22, 2013
48 ( days)
FMLA/Paid Sick Leave:
September 16, 2013 through October 25, 2013
29 ( days)
FMLA/Unpaid Days:
October 28, 2013 through November 22, 2013
19 ( days)
2013-14 Annual Salary
$53,500.00
salary /
180
days =
297.22 (daily rate)
19.00
Less Unpaid Days: Balance owed: Paid through 9/15/13:
Balance due 2013-‐14:
$5,647.22 $47,852.78
=
(unpaid days)
x
297.22
x
(daily rate)
$4,458.34
$43,394.44
Divided by remaining
22
pays =
$1,972.47
Regular 2013-14 Paycheck is:
$2,229.17
salary /
24
pays =
$2,229.17
2013-14 Adjusted per pay:
$1,972.47
Salary deduction for @ remaining pay:
$256.69
Insurance Payment Schedule EMPLOYEE A
FY14
Insurance Payments due to District For Unpaid Time Off
MONTHLY PAYMENT SCHEDULE ER Medical 2nd Half of May 2014 June 2014
372.08 744.16
SINGLE Supp'l EE Term Medical Dental Life
10.00 21.80 20.00 43.60
2.40 4.80
Amt Due
DUE DATE
406.28 5/25/2015 812.56 6/25/2014
2014-2015 School Year - Assuming your return to the district ***July 2014 811.13 20.00 46.22 4.80 882.15 7/25/2014 1st Half of August 2014 405.57 10.00 23.11 2.40 441.08 8/25/2014 **Amount of rate increase effective July 1, 2014 is unknown. Amount is estimated. Finalized Check s payable to District 12345 Address Attention
********Communicate******** • Human Resources • Payroll • Insurance • Principal • Board of Educa[on
Follow-‐through Required • Finalize / verify all schedules • Begin deduct process • Distribute informa[on appropriately • Follow-‐up on return date • Confirm receipt of all paperwork
QUESTIONS ? ? ? ?
CONTACT INFORMATION Mel Diaz [email protected] Cathy Lauria [email protected]
Types of Leaves
• FAMILY MEDICAL • MATERNITY / CHILDREARING • UNPAID • SABBATICAL • OTHER
Management Focus – Internal vs Outsourcing COMPLEXITIES OF MANAGING FAMILY MEDICAL LEAVE o SICK o VACATION o PERSONAL o UNPAID
FMLA Outsourcing Concerns of HR Professionals • • • • • • •
49% -‐ FMLA 13% -‐ COBRA 12% -‐ Fair Labor Standards 8% -‐ HIPPA 8% -‐ Americans with Disabili[es Act (ADA) 5% Occupa[onal Safety and Health Act (OSHA) 5% Employee Re[rement Income Security Act (ERISA)
(The HR.BLR.com/Compensa[on.BLR.com poll)
FMLA Outsourcing Facts and Sta[s[cs • Between 4% and 10% of U.S. employees are absent on any given day. (Employee Benefits News) • It takes employers an average of 2.5 hours to manage a single FMLA case. (SHRM) • It cost employers an average of $78,000 to defend an FMLA lawsuit (U.S. Department of Labor Wage and Human Resource Division) • 60% of FMLA lawsuits are decided in favor of the employee (U.S. Department of Labor) (The HR.BLR.com/Compensa[on.BLR.com poll)
FMLA Outsourcing Challenges of FMLA Administra[on • 47% record keeping/tracking use of leave • 32% determining what cons[tutes a serious health condi[on • 31% communica[on with health care providers • 29% coordina[ng FMLA with Workers Compensa[on and Disability Benefits (DOL FMLA Survey Data))
FMLA Outsourcing Benefits of Outsourcing • • • •
Consistency Compliance Reduce Administra[on expense Reduces li[ga[on exposure/risk avoidance
FMLA Outsourcing Best Prac[ces to Outsourcing -‐ Technology • Counts [me by federal, state, local requirements and company paid/unpaid policies • Streamlines eligibility determina[on • Captures complex intermigent leave scenarios • System programmed for accuracy and administra[ve ease • State of the art call center and telephone technology • Ability to capture ROI – denied leaves
FMLA Outsourcing Best Prac[ces to Outsourcing -‐ Processes • • • • •
Management of medical cer[fica[on Medical escala[on (managing complex issues) Legal escala[on (keeping employer informed of “red flags” Structured return-‐to-‐work process Intermigent absences managed to cer[fica[on
Tips for Curbing FMLA Abuse • Don’t provide FMLA to employees who are not en[tled • Don’t provide FMLA for reasons not covered under the Act • Count all FMLA-‐qualifying absences towards the 12-‐ week en[tlement • Require adequate medical cer[fica[ons to substan[ate serious health condi[on • Manage intermigent leave properly
Determine Procedures • Forms – Rights – FMLA Forms – Dr. Note upon return
• Contract Terms • Calendar type – Rolling – Fiscal Year – Calendar Year
FMLA – IniKal Steps • • • •
Ini[al Contact Contact Business Office – determina[on/info Submit leave request for approval Tenta[ve Schedules – Calendar – Payroll Memo – Insurance Payments
Customize School Calendar for Each Employee Type ABC School District 12345 2013 - 2014 A ugus t 2 013 MON
T UE
WE D
S eptember 2 013
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
9
10
11
12
13
16
17
18
19
24
25
26
19
20
21
22
23
23
26
27
28
29
30
30
T o tal
10
T o tal
N o v ember 2 013 MON
T UE
WE D
O c to ber 2 013 MON
T UE
WE D
T H UR
FRI
1
2
3
4
7
8
9
10
11
20
14
15
16
17
18
27
21
22
23
24
25
28
29
30
31
19
T o tal
D ec ember 2 013
T H UR
22
J anuary 2 014
FRI
MON
T UE
WE D
T H UR
FRI
1
2
3
4
5
6
MON
T UE s no w day
WE D
T H UR
FRI
1
2
3
8
9
10
4
5
6
7
8
9
10
11
12
13
s no w day
11
12
13
14
15
16
17
18
19
20
13
14
15
16
17
18
19
20
** 2 1 **
22
23
24
25
26
27
20
21
22
23
24
29
30
31
T o tal
15
** 2 6 ** **2 5 ***
27
28
29
T o tal**
17
30
s no w s no w day day
31 T o tal
15
10 Week FMLA Request ABC School District 12345 2013-2014 Employee A - Tentative FMLA
Requesting 10 wks FMLA
S eptember 2 013
O c to ber 2 013
A ugus t 2 013 MON
T UE
WE D
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
9
10
11
12
13
16
17
18
19
20
24
25
26
27
19
20
21
22
23
23
26
27
28
29
30
30
T o tal
10
T o tal 11 s ic k
N o v ember 2 013 MON
T UE
WE D
T UE
WE D
T H UR
FRI
1
2
3
4
3
7
8
9
10
11
4
1
14
15
16
17
18
5
2
21
22
23
24
25
6
28
29
30
31
19
T o tal
0 unpd
18 s ic k
T H UR
FRI
7
MON
T UE
WE D
T H UR
FRI
2
3
4
5
6
5
6
7
8
8
9
10
11
12
13
11
12
13
14
15
9
16
17
18
19
20
18
19
20
** 2 1 **
22
10
23
24
25
26
27
27
28
29
30
31
T o tal** 15
unpd
17
22 4 unpd
J anuary 2 014
4
0 s ic k
MON
D ec ember 2 013
1
** 2 6 ** **2 5 ***
Due Date - 9/16/13 Return Date - 12/2/2013
T o tal
15
MON
T UE
s no w s no w day day 13
14
20 21 s no w s no w day day
WE D
T H UR
FRI
1
2
3
8
9
10
15
16
17
22
23
24
29
30
31
T o tal
15
Include Impact on Earnings F ebruary 2 014 MON
T UE
WE D
M arc h 2 014
T H UR
FRI
MON
T UE
WE D
A pril 2 014
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
1
2
3
4
3
4
5
6
7
3
4
5
6
7
7
8
9
10
11
10
11
12
13
14
10
11
12
13
14
14
15
16
17
18
17
18
19
20
21
17
18
21
22
23
24
25
24
25
26
27
28
24
25
28
29
30
T o tal
18
31
T o tal
20
M ay 2 014 MON
T UE
WE D
** 19 ** ** 2 0 ** **2 1** 27
28
T o tal**
16
26
J une 2 014
53,500.00
T H UR
FRI
MON
T UE
WE D
T H UR
FRI
s ic k
29
1
2
2
3
4
5
6
unpd
19
9
10 las t day
to tal
48
5
6
7
8
9
12
13
14
15
16
19
20
21
22
23
26
27
28
29
30
T o tal
21
T o tal
297.22
5,647.22
7 180 days
** 11/2 1 a n d 11/2 5 wo rk f u ll d a y + e v e n in g c o n f e re n c e = o f f o n 11/2 6 ** 3 /19 a n d 3 /2 0 wo rk f u ll d a y + e v e n in g c o n f e re n c e s -‐ o f f o n 3 /2 1
Payroll Memo ABC School District 1234 MEMORANDUM Date:
September 30, 2013
To:
Teacher A
From:
Mary Smith, Payroll Coordinator
RE:
2013-14 Family Medical Leave
In an effort to clarify the manner in which your paychecks will be affected due to your family medical leave and the error on your last check due to the addition of your deduction instead of the subtraction, we have outlined below the recalculations used to determine your pay for the 2013-14 school year.
The f ollowing l eave dates apply:
September 16, 2013 through November 22, 2013
48 ( days)
FMLA/Paid Sick Leave:
September 16, 2013 through October 25, 2013
29 ( days)
FMLA/Unpaid Days:
October 28, 2013 through November 22, 2013
19 ( days)
2013-14 Annual Salary
$53,500.00
salary /
180
days =
297.22 (daily rate)
19.00
Less Unpaid Days: Balance owed: Paid through 9/15/13:
Balance due 2013-‐14:
$5,647.22 $47,852.78
=
(unpaid days)
x
297.22
x
(daily rate)
$4,458.34
$43,394.44
Divided by remaining
22
pays =
$1,972.47
Regular 2013-14 Paycheck is:
$2,229.17
salary /
24
pays =
$2,229.17
2013-14 Adjusted per pay:
$1,972.47
Salary deduction for @ remaining pay:
$256.69
Insurance Payment Schedule EMPLOYEE A
FY14
Insurance Payments due to District For Unpaid Time Off
MONTHLY PAYMENT SCHEDULE ER Medical 2nd Half of May 2014 June 2014
372.08 744.16
SINGLE Supp'l EE Term Medical Dental Life
10.00 21.80 20.00 43.60
2.40 4.80
Amt Due
DUE DATE
406.28 5/25/2015 812.56 6/25/2014
2014-2015 School Year - Assuming your return to the district ***July 2014 811.13 20.00 46.22 4.80 882.15 7/25/2014 1st Half of August 2014 405.57 10.00 23.11 2.40 441.08 8/25/2014 **Amount of rate increase effective July 1, 2014 is unknown. Amount is estimated. Finalized Check s payable to District 12345 Address Attention
********Communicate******** • Human Resources • Payroll • Insurance • Principal • Board of Educa[on
Follow-‐through Required • Finalize / verify all schedules • Begin deduct process • Distribute informa[on appropriately • Follow-‐up on return date • Confirm receipt of all paperwork
QUESTIONS ? ? ? ?
CONTACT INFORMATION Mel Diaz [email protected] Cathy Lauria [email protected]
