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For many small and mid-sized employer groups, managing employee leave under the Family and Medical Leave Act (FMLA) is far more complicated than it appears on the surface. While larger organizations often rely on third-party FMLA administrators to handle eligibility tracking, calculations, and compliance, smaller employers frequently don’t meet the thresholds required to engage an outside vendor—or simply can’t justify the cost.

That leaves HR teams, payroll managers, or even owners themselves responsible for administering one of the most nuanced and compliance-sensitive employment laws on the books.

Why FMLA Is Especially Difficult Without a Vendor

At its core, FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. However, the administrative burden lies in the details:

• Tracking employee eligibility across rolling 12-month periods

• Managing intermittent and reduced-schedule leave

• Coordinating FMLA with PTO, sick time, and state leave laws

• Ensuring accurate documentation and timely notices

• Calculating leave usage correctly—down to fractions of a workweek

For smaller employers without automated systems or dedicated compliance support, even a small misstep can create risk. Over-counting leave can interfere with employee rights, while under-counting leave can lead to extended absences and operational challenges.

A Common Pain Point: Calculating FMLA During Holiday Weeks

One example that frequently trips up employers is how to calculate FMLA leave during weeks that include a holiday. ( Calculating FMLA Leave During Holiday Weeks )

If an employee takes a full week of FMLA leave, the calculation is relatively straightforward: the entire week counts as one full week of FMLA—even if a paid holiday falls within that week.

However, things become much more complicated when an employee is taking intermittent or reduced-schedule leave during a holiday week. In those cases:

• The holiday typically does not count against the employee’s FMLA entitlement unless the employee was scheduled to work and used FMLA leave on that holiday.

• Leave must be calculated as a fraction of the employee’s normal workweek, not a shortened holiday week.

• Miscalculations can unintentionally reduce or inflate an employee’s available FMLA balance.

For a small HR team juggling multiple responsibilities, these distinctions are easy to miss—but they matter from a compliance standpoint.

The Risk of “Doing Your Best” with FMLA

Many smaller employers are doing exactly that: their best. But FMLA isn’t forgiving when it comes to errors. Incorrect tracking, inconsistent application, or poor documentation can lead to employee disputes, Department of Labor inquiries, or legal exposure.

Unlike benefits administration or payroll—where systems are often automated—FMLA frequently relies on manual tracking, spreadsheets, and institutional knowledge. When key staff leave or processes aren’t clearly documented, risk increases quickly.

How Employers Can Reduce FMLA Risk Without a Vendor

If outsourcing FMLA administration isn’t feasible, employers can still take steps to reduce risk:

• Implement clear, written FMLA policies and procedures

• Train HR and payroll teams on common FMLA scenarios

• Use standardized forms and tracking tools consistently

• Partner with a trusted benefits or HR advisor for compliance guidance

• Periodically audit leave calculations and documentation

Having the right support—even if it’s not a full-service FMLA vendor—can make a meaningful difference.

Final Thoughts

FMLA compliance is challenging for employers of all sizes, but smaller organizations often feel the strain the most. Without access to third-party administrators, the margin for error is slim, and the administrative burden is real.

Understanding the nuances—like how to properly calculate leave during holiday weeks—is just one example of why proactive education and support are essential. With the right guidance and tools, even smaller employers can manage FMLA confidently while protecting both their employees and their organization.

How JGBC Can Help

At J Gard Benefit Consultants (JGBC), we understand that smaller employer groups often carry the full weight of FMLA administration without the benefit of a dedicated leave vendor. That’s why we focus on providing practical support and trusted resources to help employers stay compliant and confident.

Through our partnership with BizAssure, a leading risk management specialist, we help employers identify potential compliance gaps and reduce exposure related to leave management, employment practices, and HR policies. In addition, our clients receive access to HR Hero, a powerful compliance and legal resource platform that offers on-demand guidance, templates, training, and up-to-date regulatory information.

Whether you’re navigating FMLA calculations, responding to employee leave requests, or simply looking for clarity on HR compliance issues, JGBC connects you with the tools and expertise you need—without adding unnecessary complexity or cost.

LINKS AND RESOURCES

• • DOL Wage and Hour Division   Opinion Letter FMLA 2023-2-A
  • DOL Fact Sheet #281: Counting Leave Use Under The Family and Medical Leave Act
  • FMLA Regulations for calculating holidays