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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-8211.
Two scientific surveys of American workers and their
bosses who have used leave available under the historic Family and Medical
Leave Act (FMLA) may shatter some myths about its uses.
The survey of U.S. workers found that women and men are
using the leave benefits almost equally. According to the survey, women
comprised 58 percent of leave-takers and men 42 percent. Men were more likely
to use the act as a result of their own personal illness, while women used the
act to care for seriously ill family members more often than their male
colleagues.
The FMLA took effect in August 1993 and required that
businesses with 50 or more employees grant workers up to 12 weeks of unpaid
leave to attend to their own serious health condition, the serious illness of a
child, parent or spouse or the birth or adoption of a child.
About three percent of the workforce eligible to use the
act has used the unpaid leave benefit. Most who could have used the act but did
not said they were unable to take additional time off from work because their
families could not afford it. The surveys were released today by the Family and
Medical Leave Commission, which was established as part of the FMLA. .
Workers said they took family and medical leave most often
to address their own serious illness. And workers reported that leave to care
for an ill child, parent or spouse were usually of a short duration. Average
length of leave was found to be about 37 days, despite up to 12 weeks of leave
being made available under the law.
"The results of this survey indicate that family-friendly
benefits support American workers and are good for American business. The law
has definitely been worth the battle President Clinton waged to win passage,"
said Labor Secretary Robert B. Reich, a member of the bipartisan commission.
Reich's department administers the new law, the first legislation signed by
President Clinton.
"The survey is scientific confirmation of what we have
seen through our administration of this new workplace benefit. Employees are
finding the leave critical to their family and health care needs. Employers are
having little difficulty administering the benefits and in some cases find it
actually reduces turnover rates and improves productivity."
The survey showed that about 90 percent of employers
affected by the new law reported no costs or small costs associated with
administering the act. More than 85 percent of firms reported "no noticeable
effect" on employee turnover, absences or productivity.
The survey of employers also indicates that in many
circumstances, businesses are finding the act has positive benefits. About
two-thirds of firms with more than 250 employees said family and medical leave
had a positive effect in helping employees care for family members.
Reich said the Wage and Hour Division, the Labor
Department agency charged by Congress with enforcing and administering the act,
has received approximately 3,000 complaints since the act took effect in August
1993. Most of those complaints were resolved by phone and only a handful have
resulted in court action.
"This act really points out the best of corporate America
and U.S. workers," Reich said. "Given the opportunity to provide this important
family benefit, most employers have embraced it and helped their employees use
it. And clearly, it is a benefit that American workers have not abused but
found very, very helpful in times of health or medical crisis."
The random telephone survey of 2,254 employees nationwide
was conducted for the bipartisan commission by the Survey Research Center of
the University of Michigan. The Maryland-based Westat research firm conducted a
survey of 1,206 private-sector employers. Both employees and employers were
asked about the same 18-month period beginning in January 1994. The commission
is chaired by Sen. Christopher Dodd, D-CT.
Copies of the survey are available by calling Anne Bookman
at (202) 219- 6611. Information about the Family and Medical Leave Act is
available through the Office of Public Affairs, Employment Standards
Administration(202) 219- 8743.
Fact Sheet on the Survey of Employers
about the Family and Medical Leave Act
þ Two-thirds of companies expanded their leave policies because of the FMLA.
Sixty-six percent of FMLA-covered firms expanded their leave policies to comply with the new law.
The most common changes
reported were:
76.9 percent expanded the number of reasons leave can now be taken
69.3 percent now allow males to take leave to care for sick or newborn or newly adopted children
66.4 percent expanded the length of leave available
54.8 percent now provide job-guaranteed leave
52.9 percent now continue health insurance during leave
þ After only two years, 86 percent of companies that are covered by the FMLA know they are covered.
þ Most employers report no problems or excessive costs in complying with the FMLA. Between 89 and
98 percent of FMLA-covered firms report no costs or small costs related to administration, hiring and
training, and continuation of benefits. This is also evident in the fact that virtually all FMLA covered
firms (98.7 percent) report no reduction in benefits to offset FMLA related costs.
þ The majority of employers report "no noticeable effect" on their overall business performance.
Between 86-96 percent of FMLA covered firms report that business productivity (86.4 percent),
profitability (92.5 percent)and growth (95.8 percent) were not affected by the law.
þ For FMLA covered-employers reporting a noticeable effect, the positives outweigh the negatives.
About one third of FMLA-covered firms report a positive effect of FMLA in helping employees care for
family members. This positive effect jumps to two thirds for firms with over 250 employees.
Methodology
The Commission on Leave contracted with the Westat research firm in Rockville, MD to conduct a survey of the
impact of the Family and Medical Leave Act on U.S. private-sector establishments. Data were collected by
telephone interviews with employers representing a national probability sample of 1,206 U.S. private
establishments. The survey captures the views of both FMLA covered and non-covered firms, including large
and small businesses.
þ 10.8% of all private establishments in the U.S. are included under FMLA guidelines. These
establishments account for 59.5% of the employees who work in the private sector.
þ Taking the eligibility requirements of FMLA into account, slightly less that one-half (46.5%)of the
employees in private U.S. establishments are eligible to take leave under the Act.
þ Of FMLA covered establishments, 86.5% report knowledge of the Act based on whether the Act applied
to their establishment.
þ Utilization of the Act: Across all covered establishments, the ratio of employees taking leave under
FMLA to all employees within covered establishments is 3.6 for every 100 employees.
þ FMLA covered establishments with 50 to 250 employees are less likely to have used FMLA (2.4 for
every 100 employees) than larger FMLA covered establishments with 250 or more employees (5.3 times
for every 100 employees). Manufacturing establishments report more employees taking leave under the
Act (4.4 per 100) than retail establishments (2.0 per 100).
Impact of FMLA on Employers' Leave Policies
Sixty-six percent of FMLA covered firms changed their leave policies (i.e. introduced new policies or
expanded existing policies) to comply with the new law.
Among FMLA covered employers, the most common changes reported were:
Costs and Benefits
The majority of employers report that implementing the FMLA has been "very easy" or "somewhat easy." For
example:
þ 92.0% said determining employee eligibility was very/somewhat easy
þ 91.8% said determining whether the Act applies to their establishment was very/somewhat easy.
þ 81.1% said coordinating state and federal leave policies was very/ somewhat easy.
þ 78.9 said coordinating the Act with pre-existing leave policies was very/somewhat easy to manage.
þ 76% said that additional record-keeping necessary for the Act was very or somewhat easy.
Costs Related to Implementation
A majority of FMLA-covered firms reported either "no increase" or a "small increase" in costs due to FMLA, as
follows:
þ Administrative costs - 89.2% no/small increase in costs
þ Continuation of Benefits - 93.4% no/small increase
þ Hiring/training costs - 94.8% no/small increase
FMLA Does Not Impose a Burden on Business
Between 85% to 96% of the establishments covered by FMLA currently report "no noticeable effect" of the Act
on business productivity (86.4%), profitability (92.5%), and growth (95.8%).
A similar proportion of FMLA covered firms found "no noticeable effect" on employee turnover (94.7),
employee absences (89.5%) and employee productivity (82.7%).
Two particular issues were of concern before passage of the Act
How would work be covered? Would benefits need to be reduced?
* Covering the work of leave-takers also does not appear to present a problem. Assigning work temporarily
to other employees (97.1%) and hiring an outside temporary replacement (60.5%) are the most prevalent
methods used by FMLA-covered organizations to cover work while an employee is on leave.
* Benefits were not reduced. 98.7% of FMLA covered firms reported that they did not have to reduce benefits
to offset the costs associated with implementing FMLA. This was true for large and small FMLA-covered firms
across industries.
Benefits of FMLA to Business
Although most FMLA covered firms state that the Act has had "no noticeable effect," they also report that the
positives outweigh the negatives. This is especially true about the Act's impact on helping employees to
balance work and family responsibilities.
* Employees ability to care for Family members
34.1% - positive effect
0.2% - negative effect
* Employee Productivity
12.6% - positive effect
4.7% - negative effect
* Employee Career Advancement
8.3% - positive effect
0.8% - negative effect
* Employee Turnover
4.9% - positive effect
.4% - negative effect
* Employee Absences
5.9% - positive effect
4.6% - negative effect
Larger establishments (more than 250 employees) report a larger positive impact of the Act (61.1%) on the
employee's ability to care for a family members than smaller FMLA covered firms(32.6%).
Expectations of Non-Covered Establishments about FMLA
Businesses that are not covered by FMLA were asked to consider the effect of complying with the law should the
Act be extended to cover them in the future. Westat states, "These results contrast sharply with the actual
experiences of FMLA covered firms."
On the issue of overall businesses performance, these companies are fairly evenly divided between those who
predict "no noticeable effect" or a "negative effect."
* Business Productivity
46.1% - no noticeable effect
46.8% - negative effect
* Business Profitability
48.0% - no noticeable effect
46.6% - negative effect
* Business Growth
62.2% - no noticeable effect
33.8% - negative effect
On the issue of overall employee performance, the majority of these companies predict "no noticeable effect" and
a small "negative effect." For example, employee turnover (73.7% vs.15%), career advancement (85.5% vs.
8.5%), employee absences (64.% vs. 28.1), employee productivity (56.8% vs. 31.0%) and ability to care for
family (49% vs. 8.2%).
Archived News Release--Caution:
information may be out of date.
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