FMLA Outsourced

woodallmd

Is anyone outsourcing FMLA to an outside vendor? If so, who is the vendor? What are pros and cons? Did you prepare an ROI prior to implementation? If so, management reaction. Advice appreciated.

woodallmd

Don D
My intention would be to have one vendor perform the "intake" for FMLA, STD, LTD, and Workers Comp. Our employees would call one number to request the paperwork and/or appropriate benefit. Our STD "Advice to Pay" and LTD are already outsourced and FMLA would fit into the outsourced Integrated Disability Management process.

Outside vendors now have the technology for integrated disability systems to also track FMLA by employee in the same system as STD and LTD, and provide advanced reporting capability as well as incorporate state disability laws into this technology.

My hope would be to switch headcount costs to outsourcing costs. Electronic files with YTD hours worked, length of service etc. would be sent from the employer to the vendor to determine eligibility - - we are already doing this because our STD is already outsourced.

We don't have in-house technology to effectively track FMLA nor good reporting capabilities. I just see this alternative as a better way to manage this necessary evil. However, I still have concerns as to whether this actually is working well with employers who are already outsourcing. I am getting some references soon so hope to have better information. How do you currently handle FMLA at your location(s) and for how many employees? I'm still open to better ideas. Thanks.

Don D

It does make better sense now that I know you are already outsourcing related programs. I can see the transfer of files and periodic updates of employee data as being a great burden to initially set up and I would always be afraid that a clerical employee across town would not administer such a critical program properly; however, you've already got it in place. We've had some huge problems transferring files to our 401K administrators in another state and similar transfers and updates with our Blue Cross and COBRA administration. Vendors are running at us now to get us to buy into their administration of savings bonds programs, cafeteria plan and AFLAC (quack). They all assure us that there is absolutely no work on our part required (right). At any given time, our company has 5-10 ee's on FMLA. The HR Specialist in our department handles all the paperwork from the point of working with the ee through the process of begging the clinics to fax us their part to the computerized tracking of hours and time frames. All in all, it probably takes her a maximum of an hour per week to manage. I oversee it and ensure that program requirements are met precisely and I also personally monitor the ADA, FMLA, COMP overlap and program mesh. We're so on top of FMLA here that I would actually be very uneasy if it were outsourced. Hopefully there is someone out there who is doing it and will respond.