• An “integrated employer” test can determine if separate entities can be designated as a single employer for FMLA purposes.

There are circumstances where the relationship between two entities is so close that the relationship is treated as being an integrated employer, and therefore treated as a single employer in counting employees for Family and Medical Leave Act (FMLA) coverage.

Separate entities can be designated as a single employer for FMLA purposes if the entities pass the “integrated employer” test. If that test is met, all employees of the separate entities must be counted to determine if the company is a covered employer. In applying the test, look at the entire relationship and consider the following questions:

• Is there common management? This may include common directors and boards.
• Is there an interrelation of operations? This could include common work areas, common recordkeeping, and shared bank accounts and equipment.
• Is there centralized control of labor relations? This may involve such responsibilities as hiring and firing, performance evaluations, and promotions.
• Is there a degree of common ownership/financial control?