Heads up: Court says FMLA violations will likely end up costing double damages
Another reason to make sure your HR folks have airtight FMLA processes: If your company winds up guilty of an FMLA violation in court, you’ll most likely have to fork over double damages.
That’s the takeaway from Crain v. Schlumberger Technology Co., an FMLA ruling that essentially said that if an employer is found guilty of violating the FMLA, it will have to pay the jury verdict as well as an additional amount equal to that figure in liquidated damages — aka, “double damages.”
Bad timing
In the case, an employee who had already been selected for a reduction in force (RIF) let the company know he needed to have surgery. Although he didn’t specifically mention the FMLA, he did ask about the availability of short-term disability.
The company had plan to terminate the employee in March, but expedited it to early February as a result of the surgery disclosure.
That prompted the employee to file an FMLA interference claim.
What the court said
A jury ruled that the employer had, in fact, interfered with the employee’s FMLA rights and awarded him double damages.
The company tried to argue that the court shoudn’t double the jury’s original verdict award of $77,000. But a court affirmed the jury’s verdict and liquidated damages award, and even noted that proof of unlawful intent isn’t needed to support an FMLA interference claim.
Three words basically sealed the company’s fate: No good faith. According to the court, employers bear a “substantial burden” to prove good faith and overcome the “presumption of entitlement to liquidated damages.”
To do this, an employer must prove it:
- Acted with a subjective intent to comply with the FMLA, and
- Acted objectively reasonable in its application of the FMLA.
The court said that even though the employer in this case had an FMLA policy in its handbook and reviewed the list of employees selected for the RIF hadn’t specifically requested FMLA, the employee here had mentioned short-term disability.
Therefore, the company’s failure to consider the potential application of FMLA was neither reasonable nor in good faith.
Result: double damages.
Free Training & Resources
Webinars
Provided by Insightsoftware
Further Reading
Employers may need to reverify certain employees’ Form I-9 documents due to recent changes from the Department of Homeland Security (DHS)...
Who’s an employee and who’s an independent contractor? When making that determination for wage and hour compliance, businesses may...
Wage and hour litigation presents a recurring financial risk, with new data highlighting variability in employer exposure under the FLSA. ...
According to the American Heart Association, an estimated 122.4 million – or 47% – of U.S. adults have hypertension, more commonly know...
Some of the biggest companies are ending their diversity, equity and inclusion (DEI) initiatives — and doing so quickly. Brown-Fo...
Sometimes, the payment of bonuses is at the discretion of the employer. But at other times, bonus payments are required under the terms of ...