Fmla / company 3 fin

kweaver

My question is we have an employee that transfered from one of our company's to another. Each company has it's own federal ID number but we are all affliated. The employee is requesting FMLA for the birth of her child. She meets the requirements of 12 months for her total time with us but not for the company she transfered to.

Is she eligible for FMLA?

Thanks.

NaeNae55

Are all the companies handled under one umbrella such as for management and benefits? Does one company own the others?

We only have 14 employees, and have our own tax ID number. We also are the only company in our group of companies that does our own payroll, financials, etc. We still fall under FMLA due to our owner company.

Hope this helps. Good luck!

Nae

editorial

The regulations from DOL provide that employees of another entity will be counted as your employees, if your company and the other entity are “joint” or “integrated” employers.

A corporation with an ownership interest in another corporation is a separate employer, unless it meets the “joint employer” or the “integrated employer” test.

Joint Employer Test
Joint employers may be separate companies wholly distinct from each other, with separate owners,
managers, and facilities. Conversely, joint employers may be two related companies with common ownership, management, and facilities. The factors in determining if a joint employer relationship exists include:
1. The nature and degree of control of the workers
2. The degree of supervision, direct or indirect, of the work
3. The power to determine the pay rates or the methods of payment of the workers
4. The right, directly or indirectly, to hire, fire, or modify the employment conditions of the workers
5. Preparation of the payroll and payment of wages
6. Any other factor that evidences a common control of the workforce

No one factor is determinative of whether a joint employer relationship exists. The entire relationship
must be viewed in its totality. Generally, a joint employment relationship exists:
1. Where there is an arrangement between employers to share an employee’s services or to interchange
employees.
2. Where one employer acts directly or indirectly in the interest of the other employer in relation to
the employee.
3. Where the employers are not completely disassociated with respect to the employee’s employment
and may be deemed to share control of the employee, directly or indirectly, because one employer
controls, is controlled by, or is under common control with the other employer.

For example, joint employment ordinarily will be found to exist when a temporary or leasing agency
supplies employees to a second employer.

Integrated Employer Test
Separate entities will be deemed to be one employer for purposes of the FMLA where the operations
of both employers are found to be “integrated.” Factors considered in determining if two or more
employers are integrated include:

1. Common management
2. Interrelation between operations
3. Centralized control of labor relations
4. Degree of common ownership/financial control

As with the joint employer test, no one factor is determinative of whether an integrated employer
relationship exists. The entire relationship must be viewed in its totality.

Employees of joint or integrated employers must be counted by both employers, whether or not they
are maintained on both employers’ payrolls, in determining employer coverage and employee eligibility.

NaeNae55

Thank you Editorial! This was very informative.