What do employers risk if they violate the FMLA?
Employers that violate the Family and Medical Leave Act (FMLA) risk bad publicity, low employee morale, and high turnover. While these have economic consequences embedded into them, employers also risk lawsuits which can result in financial penalties that could impact their bottom line.
Employers that find themselves in a courtroom losing an FMLA claim might have to pay employees for lost wages and benefits due to the violation, including the following:
Back pay: Back pay refers to wages, salaries, and benefits an employee lost as a result of an employer’s wrongful actions. Back pay covers lost earnings from the date of termination (or other negative employment action) to the date of the judgment in the case. This can include actual monetary loss sustained by the employee up to:
- 26 weeks of wages for leave to care for a covered servicemember.
- 12 weeks of wages for leave for other FMLA-qualifying reasons.
Reinstatement: Employers might be ordered to reinstate the employee to their former position or an equivalent one. This is known as “equitable relief.”
Front pay: If reinstatement isn’t feasible, employers might have to pay future wages. Front pay refers to wages, salaries, and benefits the employee will lose in the future as a result of the employer’s actions (from the date of the judgment to some point in the future). If, for example, the employee can’t find a new job, the employer might have to pay the employee in the meantime.
Liquidated damages: These are typically equal to the amount of back pay, front pay, and interest, effectively doubling the compensation. Liquidated damages are amounts automatically awarded unless the employer can show that it acted in good faith. If, for example, the employer can show that it made an honest mistake when it denied an employee leave, the employee won’t be awarded liquidated damages.
Attorney fees and court costs: If the employee wins the case, the employer might be required to pay the legal fees and court costs incurred by the employee. This can include expert witness fees and other costs of the case, which can add up to thousands of dollars.
Civil penalties: The U.S. Department of Labor (DOL) can impose civil monetary penalties for willful violations.
Generally, the DOL doesn’t randomly investigate employer FMLA compliance. They could, however, discover noncompliance issues while investigating an employer for another labor-related matter.
Employees can file claims directly with the DOL. They may also file private lawsuits. Lawsuits must be filed within two years after the last action that the employee believes violated the FMLA, or three years if the violation was willful.
Key to remember: Employer FMLA missteps can result in big costs. In fiscal year 2024, the DOL obtained $1,482,398 in back wages alone for FMLA violations.