Employers are increasingly faced with significant challenges in effectively managing FMLA and state-leave-related absences. Inappropriate administration and mismanagement of absences can cost an employer millions of dollars in revenue, production and legal fees. Today's employees are becoming more knowledgeable on the use of FMLA and state-leave benefits. As their knowledge and use of these benefits increases, so too will your associated administrative and personnel costs. To combat increasing costs associated with employee absences, it is both financially and administratively critical to have a solid, well-governed absence management program in place.

Three Primary FMLA Challenges:

• Increasing exposure to litigation.
• According to the Equal Employment Opportunity Commission (EEOC), employees who successfully sued for wrongful termination based on FMLA absence received an average of $87,500 to $450,000 in damages.
• Appropriate application and coordination of state leave benefits and FMLA.
• Are your programs being administered within federal and state regulations (i.e., are you meeting notification timeframes and are you keeping accurate records?)?
• Inconsistent handling of claims.
• Keeping up with regulation changes.

• Staffing concerns and increased absenteeism costs when leave is taken with little or no notice.
• Lack of accurate recordkeeping and reporting methods, decentralized information and perceived inequitable treatment of employees.
• Determining what constitutes a serious health condition.
• Tracking intermittent and reduced schedule leaves.
• Accurate tracking of FMLA bank, utilized and recovered time.
• Lack of administrative personnel and resources to manage FMLA and state leave benefits on a daily basis.

• Employees continue to increase utilization of FMLA as a result of an aging workforce and increased knowledge of FMLA.
• Co-workers pick up additional work for those on leave, resulting in lower workplace morale due to co-worker resentment.
• Employees dislike employers asking sensitive questions when making FMLA determinations.

Why Outsource to CareWorks USA

• Reduce administrative time and expense through more-efficient, automated administration. Studies have shown that it can take an average of four to six hours to process an initial FMLA claim request. This does not include any follow-ups or claim recertification.
• Here is a sample cost analysis for a 500-employee company averaging 75 FMLA claims each year. The employer will spend at least 25 hours each month doing FMLA. This equates to 7.5 full weeks a year just on the initial processing of FMLA claims.
• Positively impact employee productivity and morale through fair and consistent application of FMLA requirements. Each claim is processed utilizing the same workflow. Employees have one toll-free telephone number to call, and our staff is available 24/7 to assist their FMLA needs.
• Consistent and accurate tracking of FMLA hours. Outsourcing eliminates the need for manual tracking or counting of hours to determine an employee's eligibility and/or available FMLA benefit time.
• Employee education. The education of employees on any new program or policy is essential to a program's success. CareWorks USA provides customized education programs for all absence management programs.
• Accurately capture and report lost work time, associated costs and employee trends. Reports can be customized to provide ongoing transaction information and program trends, which can be used for staffing, management and other planning.
• Alleviate concerns regarding privacy. CareWorks USA strives to ensure that all communications (including reports) comply with the Health Insurance Portability & Accountability Act's (HIPAA's) requirements for protected health information. Our Files Anywhere program allows access to shared information, while keeping it secure from unauthorized personnel.
• Remain in compliance with state and federal FMLA laws. Defense of an FMLA complaint costs, on average, $78,000 to $100,000 in legal fees, regardless of the outcome. CareWorks USA Disability Management Solutions stay current on regulation updates and proposed federal and state leave law changes.
• Customization of your program. Program design, reporting, educational materials and correspondence to employees can be customized to meet each customer's individual needs, policies and workplace culture.
• Designated Leave Specialists. CareWorks USA understands the importance of relationships. As such, we assign Designated Leave Specialists to each of our customers. Our Leave Specialists are highly trained, experienced professionals with a thorough knowledge of FMLA and state-specific leave regulations.
• Integration of Nurse Case Managers. Our experienced panel of physician advisors and nurse case managers is instrumental in making accurate decisions involving medical conditions and information.