The ABCs of FMLA & ADA€¦ · *The use of this seal confirms that this activity has met HR...
Transcript of The ABCs of FMLA & ADA€¦ · *The use of this seal confirms that this activity has met HR...
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Basics of the Family Medical & Americans with Disabilities Acts
The ABCs of FMLA & ADA
© ComplianceDashboard, LLC, 2020
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Our Presenter
Note: Material contained in this presentation is not legal advice and should not be construed as legal advice. If legal advice or other professional assistance is required regarding any issues referenced in this presentation, the services of a competent legal or tax professional should be immediately sought.
Olivia Ash, JD, MS, worked the last 16 years in roles ranging from account management to business development contracting. She’s a licensed teacher with experience in higher education. Olivia speaks about ERISA regulations, and writes content for ComplianceDashboard©.
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Agenda
• Housekeeping• FMLA• ADA• 2020 State Law Updates
Note: Material contained in this presentation is not legal advice and should not be construed as legal advice. If legal advice or other professional assistance is required regarding any issues referenced in this presentation, the services of a competent legal or tax professional should be immediately sought.
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The Family Medical Leave Act
FMLA
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TitleBody TextNote:
FMLA is a federal regulation overseen by the
DOL’s Wage and Hour Division.
However, FMLA is interpreted differently from state to state.
Therefore, consult your local attorney for questions.
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What’s the purpose?
FMLATo provide eligible
employees of a covered employer unpaid, job-
protected leave
to care for themselves or family members for a
prescribed period.
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Applicability
FMLA
Leave generally available to:
➢ All public agencies, including local, state, or federal gov., regardless of EE #
➢ Public or private elementary or secondary school, regardless of EE #
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Applicability
FMLA
Leave generally available when these conditions are met:
➢ If Employer (ER) employ 50+ employees (EE) for each working day during each of 20+ calendar work weeks in the current or preceding calendar year;
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Applicability
FMLA
Leave generally available when these conditions are met:➢ An eligible EE has been employed for 12 months prior to the requested leave and
provided at least 1,250 hours of service with ER during the previous 12-month period; and
➢ EE works at a site with at least 50 EEs within 75 miles
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Applicability
FMLA
Covered Employers must
➢ Post a notice
➢ Include FMLA guidelines in handbooks or at hiring
➢ Provide EE with notice re: FMLA leave once requested
➢ Notify EE whether leave is designated as FMLA and amount of time deducted
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Question #1
Which of the following is a covered employer under FMLA?
A: Tech. co. owned by partnership with 5 EEB: Primary school with 49 teachersC: Private nonprofit with 25 FT EE & 5 PT EE
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Benefits
FMLA
➢ An eligible EE of a covered ER is entitled to:
➢ Job-protected, unpaid leave for a total of 12 work weeks in any 12-month period;
➢ Maintenance of health benefits as if they had continued to work; and
➢ A right to return to the same position or an equivalent position with equivalent pay, benefits, and working conditions
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Certification
FMLA
➢ An employer has the right to:
➢ Advance notice from the EE;
➢ Require EE to submit certification to substantiate the leave;
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Certification
FMLA
➢ An employer has the right to:
➢ Require EE to present a certification of fitness to return to work when the absence was caused by EE’s serious health condition; and
➢ Delay restoring the EE to employment w/o receipt of certificate relating to the health condition which caused the absence.
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Certification
FMLA
➢ In calculating leave, the ER may establish:
➢ Calendar year; anniversary year; or
➢ Moving from date of current request (moving year)
➢ prevents stacking of leave from 2 consecutive years
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Designation: Pat’s Story: the Facts
FMLA
➢ Pat is an EE; Pat requests leave of ER
➢ Widowed, elderly mother lives with Pat & needs care for Stage 4 cancer
➢ Pat is an only child
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Designation: Pat’s Story: the Analysis
FMLA
➢ Timing of notice?
➢ Level of disclosure?
➢ Other regulatory laws apply to the facts?
➢ What must an ER do?
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Designation: Pat’s Story: the Analysis
FMLA
➢ Employer MUST designate leave as FMLA-qualifying in ALL circumstances; and
➢ Give note of designation to EE within 5 business days
➢ ER must have enough info. from EE to determine if leave is FMLA-qualified
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Designation: Pat’s Story: the Analysis
FMLA
➢ Employer may NOT
➢ Delay designation of FMLA-leave (even if requested by EE); nor
➢ Designate more than 12 weeks of leave as FMLA (26 for military caregiver)
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Designation: Pat’s Story: the Analysis
FMLA
➢Neither ER nor EE may decline FMLA protection for leave
➢ If EE choose to use paid leave for unpaid FMLA leave, it counts towards the 12-week FMLA entitlement (no expansion)
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Designation: Pat’s Story: the Analysis
FMLA
➢ What about accrued paid leave?
➢ ER may require use; OR
➢ Pat may elect to “substitute” paid leave to cover unpaid FMLA-entitled leave
“Substitute”
Paid leave runs concurrently with unpaid FMLA-leave
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Qualifying Event
FMLA
➢May include:
➢ Birth or care of newborn;
➢ Placement or care of child for foster care/adoption;
➢ Serious health condition (Incapacitation) of EE or their family member
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25
Question #2
Which of the following statements is false?A. An employer may determine the method to
calculate FMLA leave
B. An employee is eligible for FMLA after 12 months & at least 1,250 hour of service
C. An employer may pause medical coverage during FMLA leave
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The Americans with Disabilities Act
ADA
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What’s the purpose?
ADA “Prohibits private employers, State and local governments, employment agencies, and
labor unions from discriminating against
qualified individuals with disabilities in job application
procedures, hiring, firing, advancement, compensation, job training, and other terms, conditions, and privileges of
employment.” -ADA.gov
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TitleBody TextNote:
The ADA is a federal regulation overseen by the U.S. Department of Justice, Civil Rights Division. Several departments implement the regulations including DOE and EEOC. ADA regulations apply to
• State & Local Governments (Title II) &
• Public Accommodations & Commercial Facilities (Title III).
Please consult your local attorney for questions.
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29
Question #3
Employee numbers are below; which employer is subject to the ADA?
A. 10B. 5C. 20D. 14
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What is a Disability?
ADA
1. Physical or mental impairment that substantially limits 1+ major life activities
2. A record of such an impairments; or
3. The individual is regarded as having such an impairment
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Reasonable Accommodation
ADA
➢ May include:
➢ Updating facilities
➢ Job restructuring
➢ Modifying equipment or devices
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What’s Permitted?
ADA
➢ An ER may make a disability-based distinction in EE benefit plans based on
➢ Actuarial principles or
➢ Reasonably anticipated experience
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What is a disability-based distinction in a benefit plan?
ADA Disability-based if it singles out…
• A disability;
• Ex: plan covers all physical & mental disorders except depression
• A discrete group of disabilities; or
• Ex: plan caps coverage for cancer treatments at $1 million by caps treatment for all other physical conditions at $20 million
• Disability in general
• Ex. ER requires EE who can’t work due to physical disorder to retire on disability retirement, eve if they’re also eligible to retire under ER’s service retirement plan
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What is not a disability-based distinction in a benefit plan?
ADANot disability-based if it…
• Is a “broad distinction” applicable to many dissimilar conditions; and
• Constrains everyone
• Ex: MRIs performed for many different conditions whether one does or does not have a disability
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What happens if an Employer makes a disability-based distinction?
ADA The Employer must
• Justify it; and
• Demonstrate that the plan:
• Is bona fide
• Exist & pays benefits; and
• Plan terms must be accurately communicated to eligible EEs
• Is not a subterfuge to evade ADA purposes
• Refers to disability-based disparate treatment in a benefit plan
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Legitimacy of Data
ADA
1. Legitimate actuarial data; or
2. By actual or reasonably anticipated experience; and
3. Conditions with comparable data are treated similarly
4. ER may NOT relay on outdated data or data base don myths, fears, stereotypes, or assumptions about the disability at issue
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Additional justification for disparate treatment…necessary to
ADA
➢ maintain solvency of the plan
➢ Avoided unacceptable change in coverage of, or premiums for, a benefit plan
➢ A treatment provides no medical benefit
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Question #4
True or False? An employer may distinguish their medical benefit plan without violating the ADA if they choose not to cover CAT scans for any condition.
A. True
B. False
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How does the ADA affect wellness plans?
ADA & Wellness Programs
Prohibits ERs from
➢ Requiring EEs to submit to physical exam;
➢ Asking health-related questions…unless it’s a voluntary EE health program
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The BIG issue:
ADA
To what extent are incentives/penalties
connected with these programs
VOLUNTARY?
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Note: The Rule…
ADA & Wellness Programs
➢ Applies only to programs asking EEs disability-related questions/medical exams
➢ Limits the incentive to the average cost of the coverage under a given plan
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Excepted wellness plans
ADA & Wellness Programs
➢ No disability-related questions/medical exams
➢ Only general health & educational material
➢ ADA applies regardless of whether the wellness program is also a health plan
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3 Prong Evaluation
ADA & Wellness Programs
1. Voluntary Participation & Incentives
2. Confidentiality
3. Reasonable Program Design
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Voluntary Participation & Incentives
ADA & Wellness Programs
➢ The ER may not➢ Require EE to participate, deny access for nonparticipation, limit coverage
under its health plan, take any adverse action, or
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Voluntary Participation & Incentives
ADA & Wellness Programs
➢ The ER may not➢ Retaliate, interfere, coerce, intimidate, or threaten an EE who does not
participate or fails to achieve certain health outcomes
The ER must provide a notice!
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Confidentiality
ADA & Wellness Programs
➢ The ER may not➢ Require EE to agree to the sale, exchange, sharing, transfer, or other disclosure
of medical information; or waive confidentiality protections as a condition for participating or receiving a program incentive
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Confidentiality
ADA & Wellness Programs
➢ The ER may ➢ Obtain data necessary to administer the plan
Data must not disclose the identify of the EE!
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Reasonable Program Design
“Reasonably designed to promote health or
prevent disease.”
ADA & Wellness Programs
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49
Question #5
Which of the following are ADA-permissible in wellness plans? A. Offering a reasonable alternative standard
B. Requiring a participant to agree to sell HRA data with a business associate to receive the incentive
C. Designing future programming based on aggregated employee biometric data
D. Obtain de-identified cholesterol data to administer the incentive for the plan
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Good Ideas➢ Complete a health risk
assessment ➢ A biometric screening➢ Use de-identified,
aggregate data➢ Design & offer health
programs aimed at conditions reflected within your population
ADA & Wellness Programs
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Bad Ideas➢ To obtain a reward:➢ Imposes overly burdensome
time to participate➢ Requires unreasonably
intrusive procedures➢ Places significant costs on EE
➢ Program exists to:➢ Shift costs from CE to targeted
EE based on health➢ Give ER data to estimate
future healthcare costs
ADA & Wellness Programs
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2020 State Law Updates
ADA
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A few noteworthy items…
2020 State Law Updates
➢ FLSA OT pay increased $455-$684/wk
➢ CA bill AB5→ reclassify independent contractors as employees
➢ NJ ban on requiring salary history for applicants
➢ NV Bill 132→bar employers from refusing to hire for testing positive for marijuana in drug screening tests
➢ OR Bill 2341 expands fair employment practices → all ER with 6+ EE provide reasonable accommodations for those with workplace limits or medical conditions related to pregnancy or childbirth
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A few noteworthy items…
2020 State Law Updates
➢CA Bill 142 →must provide lactation accommodations (not in a bathroom) ➢ Complete privacy➢ Place to sit➢ Surface for pump ➢ Access to electricity, fridge, & sink
➢WA increased paid FMLA ➢ Up to 18 weeks➢ 90% pay➢ Federal EE not eligible ➢ 5th state to increase the 12 week➢ D.C. & MA expected to follow in
July 2020 and January 2021
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A few noteworthy items…
2020 State Law Updates
➢ NY 4-year phase-in➢ Required leave for eligible farm laborers➢ 10-week period of parental leave➢ 2021 increase to 12 weeks➢ 60% avg. weekly wage➢ Funded via EE payroll deductions
➢ CA required leave up to 8 weeks
➢ NV ER 50+ EE → .019 hrs/hour worked to all EEs➢ = 40 hours paid leave/40 hrs/wk
➢ D.C. private ER up to 8 weeks paid parental leave , 6 weeks for family member and 2 weeks for own condition
➢ NJ doubled paid leave from 6 →12 weeks, 85% wage replacement