How downsizing impacts FMLA administration
Headlines report that the number of organizations that are downsizing is increasing. When headcount changes, private employers must determine whether they continue to be covered by the federal Family and Medical Leave Act (FMLA) and whether employees are eligible to take leave.
Employer coverage
Under the FMLA, all public employers are covered, no matter how many employees they have. Private employers, however, are covered by the FMLA if they have at least 50 employees in the U.S. who have worked at least 20 workweeks in the current or previous calendar year. Coverage doesn’t end the moment employers drop below the 50-employee level. Once employers meet that threshold, they remain covered until they no longer have 50 employees for 20 workweeks in the current or previous calendar year. The 20 workweeks don’t have to be consecutive.
If, for example, Employer A met the threshold on June 1, 2025, but dropped below 50 employees on December 2, 2025, and continued to have fewer than 50 employees throughout 2026, Employer A would continue to be covered in 2026 because it met the coverage criteria for 20 workweeks of the previous calendar year.
Employee eligibility
As long as employers remain covered by the law, employees are entitled to take FMLA leave for a qualifying reason if they meet three criteria:
- Worked for the employer for at least 12 months (needn’t be consecutive),
- Performed at least 1,250 hours of work in the 12 months before leave is to begin, and
- Work at a location with at least 50 company employees within 75 miles.
Employers must determine whether employees meet the first two criteria based on when the leave will begin. They determine whether employees meet the third criterion based on when the employee gave notice of the need for leave.
Once an employee meets the eligibility criteria for a particular reason, their eligibility remains intact for the duration of the 12-month leave year period.
Employers may not terminate an employee’s leave once it’s begun if the employee count drops below 50. If, for example, Employer A has 60 employees in August, but expects that the number of employees will drop to 40 in December, the employer must grant FMLA leave to an eligible employee who gives notice of the need for leave in August for a period of leave to begin in December.
Key to remember: Downsizing decreases the number of employees, but employers need to understand the nuances of the FMLA regarding employer coverage and employee eligibility.



















































