Study Finds FMLA Cost Employers $21 Billion in 2004

A study by the Employment Policy Foundation (EPF) estimates that the Family and Medical Leave Act (FMLA) cost employers $21 billion in 2004 for lost productivity, health benefit continuation premiums, and the net replacement cost of labor. The EPF survey also turned up other interesting statistics concerning the frequency of FMLA leave, the use of intermittent leave, and the notice employees give of the need for leave.

According to the EPF, an average of 14.5 percent of employees took FMLA leave in 2004. The likelihood of an employee taking FMLA leave varies considerably by industry, and 35 percent of leave-takers took FMLA leave more than once during the year. About 15 percent of employees who took leave were absent for 6 or more episodes. Furthermore, in over 30 percent of cases, employees failed to provide notice of the need for leave until after the leave began.

The EPS report can be accessed at www.epf.org/pubs/newsletters/2005/ib20050419.pdf

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