What does it all mean and who does it mean it for? Part 1 – A Covered Employer Under the FMLA.

Last week we started with the first of the FMLA Regulations.  Today you are going to skip down the Regulations a bit.  Skip already, you say?  Yes, but relax, it’s not really anything that’s important and the important stuff we will come back to.  We started with 29 CFR §825.100 which just explains what the FMLA is in broad terms.  We are going to skip 101 which is the “Purpose of the Act”, 102 which are the definitions, and 103 which is nothing, it’s reserved.  Why are we skipping the definitions?  We aren’t really, we will come back to them as we need them.   So that gets us to 29 CFR §825.104, Covered Employer.

So who is covered by the FMLA?

(a) An employer covered by FMLA is any person engaged in commerce or in any industry or activity affecting commerce, who employs 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year.

29 CFR §825.104(a).

That seems pretty simple, doesn’t it?  If you, and by you I mean a “person”, are a “person” who engages in interstate commerce or an activity affecting commerce and you employ 50 or more employees for each working day for 20 or more calendar workweeks either this year or last, you are a “covered employer.”

So who, or what rather, is a “person”?  Simple – a person is what a person always is under the law:

Person means an individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons, and includes a public agency for purposes of this part.

29 CFR §825.102.  (See, I told you we would get back to the definitions.)

It also means any person acting in the interest of an employer.  So corporate officers may be a “person” for purposes of the FMLA.  See § 825.104(d).

And interstate commerce is just as simple.   The FMLA uses the NLRA’s definition of interstate commerce:

Commerce and industry or activity affecting commerce mean any activity, business, or industry in commerce or in which a labor dispute would hinder or obstruct commerce or the free flow of commerce, and include ‘commerce’ and any ‘industry affecting commerce’ as defined in sections 501(1) and 501(3) of the Labor Management Relations Act of 1947, 29 U.S.C. 142(1) and (3).

29 CFR §§ 825.104(b) and 102.

Now generally, a single entity will be considered the employer under the FMLA.  For example, a corporation that employs employees will be considered the employer and not the various divisions or establishments of the corporation.  See § 825.104(c).  And where one corporation owns another corporation it is generally a separate employer unless it meets the joint employer test at § 825.106 (which we will talk about in a couple of weeks) or the integrated employer test that we will talk about now.  See § 825.104(c)(1).

Sometimes two or more entities might be considered a single integrated entity for determining who the employer is.  That way a really crafty “person” can’t set up, say, 5 different LLCs and have each of them have, say, 25 employees so that none of them are covered by the FMLA.  When that happens the DOL might just call those 5 different LLCs a “single integrated employer.”

(2) Separate entities will be deemed to be parts of a single employer for purposes of FMLA if they meet the integrated employer test. Where this test is met, the employees of all entities making up the integrated employer will be counted in determining employer coverage and employee eligibility. A determination of whether or not separate entities are an integrated employer is not determined by the application of any single criterion, but rather the entire relationship is to be reviewed in its totality. Factors considered in determining whether two or more entities are an integrated employer include:

(i) Common management;

(ii) Interrelation between operations;

(iii) Centralized control of labor relations; and

(iv) Degree of common ownership/financial control.

29 CFR §825.104(c)(2).  If one or more of those things is present, then two nominally separate entities might just be considered a single employer under the FMLA.

Pretty straight forward.  That is a covered employer under the FMLA.  Got 50 employees?  You are going to want to keep reading as we go along then.