FMLA Blunder: What a $438K Termination Mistake Looks Like

An employer in Alabama fired two production workers who sought time off under the Family and Medical Leave Act (FMLA).

They filed a complaint with the U.S. Department of Labor (DOL), and the agency’s Wage and Hour Division opened an investigation. Here’s what happened.

Workers seek FMLA leave

Two employees worked for Mercedes-Benz U.S. International Inc., at a location in Alabama.

According to the feds’ investigation, one worker requested FMLA leave to care for a family member with a qualifying health condition. The other employee sought FMLA leave for a personal serious health condition.

The investigation determined the employer discriminated against the workers by reprimanding them for the absences, denying them monthly attendance bonuses due to the absences and then firing them when the absences racked up demerits under the employer’s points system.

The investigation determined the employer also failed to:

• Inform employees that they may be eligible for leave within five business days of learning their requests could qualify.
• Reinstate workers to the same or equivalent positions.
• Accurately record, maintain and calculate the amount of leave taken.
• Provide notice of FMLA rights and responsibilities, as required by law.
• Designate leave as FMLA-qualifying when appropriate.

“Employers cannot deprive eligible workers of their legal right to family and medical leave and force them to make the hard choice between keeping their jobs and caring for themselves or their families,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “Federal law allows for critically needed workplace flexibilities precisely when employees need them the most. The U.S. Department of Labor will defend workers’ rights and pursue all available remedies when those rights are violated.”  

Expensive lesson: Six-figure payout

After the feds’ investigation, the company agreed to pay a total of $438,624 to the former employees, which breaks down as follows:

• $219,312 for missed earnings after being terminated, front pay for three months, and unpaid bonuses, and
• An additional $219,312 in liquidated damages for the affected workers.  

Takeaways for HR

For many HR professionals, managing FMLA compliance can feel like navigating through a maze. And missteps, as the case above shows, can be costly. Here are a few things you’ll want to make sure you get right:

1. Eligibility notice obligation

When an employee asks their employer for FMLA leave, the request triggers a duty: The employer must notify the employee if they are eligible to take the leave. Each time an employer provides an eligibility notice, it must also provide a written rights and responsibilities notice within five days.  

2. FMLA certifications

FMLA certifications are one of the biggest challenges of the job, according to many HR pros. What if you receive certification paperwork you feel doesn’t adequately document an employee’s serious medical condition? A DOL fact sheet outlines several options on how to handle questionable FMLA certification.

3. Recordkeeping obligations

FMLA records must be retained for at least three years. You have a bit of flexibility here. You can maintain the records as you see fit (i.e., hard copies or electronic records) but they must be capable of being reviewed or copied. Here’s a handy checklist on FMLA record retention.

4. Liquidated damages

Employers who violate the law must pay liquidated damages to the affected workers. The amount of liquidated damages under the FMLA is equal to the amount of lost back and front pay. Essentially, employers pay double when they don’t get it right.

5. State laws

Many state family and medical leave laws require employers to go above and beyond the federal FMLA.

Info: DOL Recovers $438K for 2 Workers Illegally Terminated By Alabama Car Manufacturer After They Took Protected Leave, 2/29/24.