Some employee benefits are mandated by statute, meaning that employers have no choice whether or not to provide them to employees. The two most relevant statutes are the Family Medical Leave Act (FMLA) and the Employee Retirement Income Security Act (ERISA).
Family and Medical Leave Act (FMLA)
- The FMLA requires that covered employers provide eligible employees up to 12 weeks of unpaid leave per one-year period for certain reasons, including:
- Birth and care of child.
- Placement of adopted or foster child.
- Serious health condition.
- Caring for immediate family member with a serious health condition.
- Covered employers must be:
- Engaged in commerce or an industry which affects commerce;
- Employ 50 or more employees for every working day of 20 or more workweeks during the current or preceding year; OR
- Any public agency, including all public and private elementary or secondary schools.
- Eligible employees must:
- Have worked for covered employer for at least 12 months; and
- Have worked for at least 1,250 hours during the one-year period preceding the leave; and
- Work at a site where at least 50 other employees are employed within a 75 mile radius.
Employee Retirement Income Security Act (ERISA)
ERISA protects employees by setting a minimum standard for pension and health benefit plans. It also regulates federal income tax effects of transactions associated with such plans. While ERISA does not require employers to establish pension or health plans, it does require employers with plans to meet minimum standards. In short, ERISA demands that:
- Employers disclose financial information concerning benefits plans to employees.
- Plan fiduciaries follow certain guidelines.
Employees have remedies available to them for misuse of benefit funds.
