Are we FMLA?
NaeNae55
3,243 Posts
3 years ago we were purchased by a hospital organization (asset purchase). In addition to our organization, the hospital owns several clinics. Each is a wholly owned subsidiary. (We are not a clinic, but in a related healthcare field.)
The owners allowed us to keep a benefit we had before purchase that is slightly different than the benefit enjoyed by hospital employees and employees of the other subsidiaries. This change has resulted in our organization being the only subsidiary that processes its own payroll, and does its own HR.
We are on the same health plan, but the insurer bills us separately. We are on the same flex plan, but have our own documents and a separate account for payroll deductions. Our employee manual is a modified version of the hospital's (we left out things that specifically referred to PRNs, etc), and we have added several benefits to our employees which the hospital offers.
Our employees enjoy the same Christmas party and attend the same free computer classes, etc, etc, etc.
We only have 14 employees and therefore should not have to comply with FMLA, but I am concerned that a court might look at our close association (same health insurance, etc) and say we must comply. Is the 50 employee number written in blood, or will a court say since we all have the same owner the count includes all employees of all organizations? Would love to have some feeback from you HR gurus. Thanks!
The owners allowed us to keep a benefit we had before purchase that is slightly different than the benefit enjoyed by hospital employees and employees of the other subsidiaries. This change has resulted in our organization being the only subsidiary that processes its own payroll, and does its own HR.
We are on the same health plan, but the insurer bills us separately. We are on the same flex plan, but have our own documents and a separate account for payroll deductions. Our employee manual is a modified version of the hospital's (we left out things that specifically referred to PRNs, etc), and we have added several benefits to our employees which the hospital offers.
Our employees enjoy the same Christmas party and attend the same free computer classes, etc, etc, etc.
We only have 14 employees and therefore should not have to comply with FMLA, but I am concerned that a court might look at our close association (same health insurance, etc) and say we must comply. Is the 50 employee number written in blood, or will a court say since we all have the same owner the count includes all employees of all organizations? Would love to have some feeback from you HR gurus. Thanks!
Comments
This is really a question for your legal counsel to help sort out "who " is the employer....... Altho I had a similar situation a few years ago (asset purchase), it was determined that we were all 1 employer for FMLA and numerous other federal statutes. There are too many facts that you cannot provide thru this board so I think an opinion from your counsel will serve you better. I'm very surprised that you've been able to go 3 years w/o acknowledging this basic issue.