For recruitment firms, success hinges on finding the right talent and ensuring a smooth transition for both candidates and clients. When your clients operate in the US, understanding the Family and Medical Leave Act (FMLA) isn’t optional – and this is where partnering with an Employer of Record (EOR) can be a game-changer. 

What is the Family and Medical Leave Act? 

The FMLA is a federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons. It also mandates the continuation of group health benefits during the leave period. While seemingly straightforward, FMLA compliance can be a complex labyrinth for employers. 

Who does FMLA cover? 

The FMLA applies to private sector employers with 50 or more employees within a 75-mile radius for at least 20 workweeks in the current or preceding calendar year. 

It also applies to all public agencies, including local, state, and federal employers, and public and private elementary and secondary schools, regardless of the number of employees. 

To be eligible for FMLA leave, an employee must: 

• Have worked for the employer for at least 12 months (not necessarily consecutive). 

• Have worked at least 1,250 hours during the 12 months immediately preceding the leave. 

• Work at a location where the employer has 50 or more employees within a 75-mile radius. 

Qualifying reasons for FMLA leave include: 

• The birth of a child and to care of the newborn within one year of birth. 

• The placement of a child for adoption or foster care and to care for the newly placed child within one year of placement. 

• To care for the employee’s spouse, child, or parent who has a serious health condition. 

• A serious health condition that makes the employee unable to perform the essential functions of their job. 

• Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.” 

• Twenty-six workweeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin (military caregiver leave). 

Beyond FMLA: Which States Also Provide Paid Family & Medical Leave? 

FMLA guarantees job-protected but unpaid leave nationwide, yet a growing list of states layers their own insurance programs that pay wage-replacement benefits. 

Here are some U.S. states that have its own paid family and medical leave program beyond the FMLA. 

Why FMLA Matters to Recruitment Firms 

While recruitment firms typically focus on connecting talent with opportunities, their indirect involvement in the employment lifecycle, especially when placing candidates with US clients, necessitates an understanding of FMLA. 

Improved client and candidate experience 

Your clients rely on you to provide high-quality candidates who can seamlessly integrate into their workforce. This includes understanding the fundamental HR obligations they face, such as FMLA.   

A smooth and legally compliant onboarding and employment experience is vital for candidate satisfaction. If a placed candidate later needs FMLA leave, understanding how it works, especially in a joint employment scenario, can prevent confusion and ensure their rights are protected. 

Demonstrating expertise in US labor laws, even indirectly, builds trust with your clients. It shows you’re not just a recruiter but a strategic partner who understands the broader implications of talent acquisition. 

How an EOR simplifies the process 

This is where an Employer of Record (EOR) truly shines. An EOR acts as the legal employer for your client’s US workforce, taking on the responsibility for all employment-related compliance, including FMLA. 

For recruitment firms, partnering with an EOR means: 

• Offloading compliance burden: The EOR handles the intricate FMLA eligibility assessments, notice requirements, leave administration, maintenance of health benefits during leave, and job restoration upon return. This frees up your client’s internal HR team (or removes the need for one if they’re a smaller entity) to focus on core business operations. 

• Reduced Risk for Clients: FMLA non-compliance can lead to significant penalties, lawsuits, and reputational damage. An EOR, with its deep expertise in US labor laws, mitigates this risk for your clients. 

• Seamless Employee Experience: The EOR ensures that employees who qualify for FMLA receive their rightful leave and benefits, leading to a more positive employee experience and potentially higher retention rates for your clients. 

• Scalability for US Expansion: For recruitment firms placing candidates with clients looking to expand quickly into the US market without establishing a legal entity, an EOR provides the necessary infrastructure and compliance framework from day one, including FMLA adherence. 

In essence, when you partner with an EOR for your US placements, you’re not just providing a staffing solution; you’re offering a comprehensive, compliant, and risk-mitigated employment framework that includes expert navigation of complex laws like FMLA.  If you’re ready to start placing candidates in the US – get in touch today.