How to Handle FMLA for Small Business: What You Need to Know
An employee tells you they need weeks off for a medical situation or to care for a family member. What do you do? Your answer depends on the size of your business, your state, and whether you have a plan in place.
The Family and Medical Leave Act (FMLA) is one of the most misunderstood employment laws - especially among small business owners who aren't sure whether it applies to them.
Does FMLA Apply to Your Business?
FMLA applies to private employers with 50 or more employees within a 75-mile radius. If you're below that threshold, federal FMLA does not apply to your business.
But that doesn't mean you're in the clear. Many states have their own family and medical leave laws that kick in at lower thresholds. Some apply at 25 employees, others at 15, and a few apply to all employers regardless of size. States with their own leave laws include California (CFRA), New York (PFL), New Jersey, Washington, Massachusetts, Connecticut, Oregon, Colorado, and others.
You need to know both the federal rules and your state's rules.
What FMLA Requires
If FMLA does apply, you must provide up to 12 weeks of unpaid, job-protected leave per 12-month period for the birth or adoption of a child, caring for a spouse, child, or parent with a serious health condition, the employee's own serious health condition, or qualifying exigencies related to a family member's military service.
During FMLA leave, you must maintain the employee's health insurance on the same terms as if they were still working. When the leave ends, you must return the employee to the same or an equivalent position.
Employee Eligibility
Not every employee at a covered employer qualifies for FMLA. To be eligible, the employee must have worked for you for at least 12 months (doesn't need to be consecutive), have worked at least 1,250 hours in the 12 months before leave begins, and work at a location where you employ 50 or more employees within 75 miles.
How to Handle Leave Requests
When an employee requests leave, take these steps. First, determine eligibility - verify whether the employee and the reason for leave qualify under FMLA and/or your state's laws. Second, provide required notices - FMLA requires you to give employees specific written notices about their rights and obligations. Third, request medical certification - for health-related leave, you can request a certification from a healthcare provider. You must give the employee at least 15 calendar days to return it. Fourth, track the leave - FMLA leave can be taken continuously, intermittently, or on a reduced schedule. You need a reliable way to track how much leave has been used. Fifth, maintain benefits and communication - keep their health insurance active and stay in reasonable contact about return-to-work plans.
What If You're Under 50 Employees?
Federal FMLA doesn't apply, but you should still have a leave policy. Employees will still face medical emergencies, pregnancies, and family crises. How you handle these situations affects morale, retention, and your reputation as an employer.
We recommend documenting a leave policy - even a simple one - that outlines what unpaid leave you'll offer, how requests should be submitted, and what job protections (if any) you provide voluntarily. This protects both you and your employees.
And critically, never retaliate against an employee for requesting leave. Retaliation claims can be filed regardless of whether FMLA technically applies.
Common FMLA Mistakes
Failing to recognize a request - FMLA requests don't require the employee to mention "FMLA" by name. If an employee says they need time off for a serious health condition, that can trigger your obligations. Requiring employees to find their own coverage during leave. Not tracking intermittent leave properly, leading to disputes. Denying leave or retaliating against employees who take it. Failing to restore the employee to the same or equivalent position upon return.
The key is preparation. Having a written policy and a clear process before you need it prevents costly mistakes in the moment.
Need help navigating leave policies for your business? We specialize in building practical, compliant HR processes for small businesses - no matter your size.
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