With over 167 million U.S. employees in the workforce and over 100 reasons for them to be out of work, employers and insurers face challenges every day with managing absence. When you consider all the different leave types, including those mandated by federal regulations, state regulations, municipal regulations and company-specific leave plans, how do you ensure compliance with all applicable regulations for each employee, especially with multiple leave requests?
This includes unpaid leave and paid leave for a multitude of reasons, including an employee’s own serious health condition, a loved one’s serious health condition, for jury duty, or possibly attending a parent teacher conference. How are employers going to manage and keep track of the federal, state, municipal requirements, eligibility, documentation and communications required to legally manage these various leave requests?
The growing importance of Paid Family Leave legislation
To date in the United States, employers who offer Paid Family Leave (PFL) have been the exception rather than the rule. PFL is usually only available through larger employers, if it is offered at all. For this reason, a small but growing number of states, most notably California and most recently New York, have enacted PFL legislation. This is great for various reasons including improved employee morale, engagement and overall productivity. There are various challenges and legislative differences from state to state. Challenges include:
- Look back period – how do carriers calculate time allowance accurately?
- Interpretation challenges
- New reporting requirements
- Multiple leave requests running concurrently, i.e. NY PFL and DBL
- Payments, detailed calculations, deductions, (taxes, benefits, child or spousal support)
More than ever there is a need to be compliant, consistent and to be aware of the business impacts and threats when compliance isn’t met. Who will be responsible for absence in your company and how will they keep up with different locations and staying fair and consistent?
The solution to managing employee absence: FINEOS Absence Management
FINEOS Absence is a system providing a 5 step process that helps you manage the ongoing regulatory disruption of absence management. With this tool, you can handle all your absence requests while staying compliant with regulation and reporting.
- Registration is the employer identification and verification step; it also provides timely reporting to help make informed decisions with absence approval.
- Adjudication includes the absence case, specific leave plans qualifiers, and leave request rejection or approval. It is also the step that walks through time management, specific paid benefits and then synchronizes it all. At this step, the absence case stores any documents, notes, and contacts in a stored file.
- Manage Leave and Payments is a step that runs automatically in FINEOS Absence based on the rules defined at the plan level and service agreement created by each employer. Once a request links to a paid leave plan and is approved, it will automatically create payments unless indicated otherwise in the system.
- The Completion stage is a step-by-step workflow process designed to support employees as early as possible with extensions, transitions, accommodations and/or a return to work plan.
- Closure of the absence case is the step in which all data is archived and stored safely.
FINEOS can help your absence management.
Contact us today.
FINEOS is a leading provider of core systems for life, accident and health insurers globally with 7 of the 10 largest employee benefits insurers in the U.S. as well as a 70% market share of group insurance in Australia. With employees and offices throughout the world, FINEOS continues to work with innovative, progressive insurers in North America, EMEA, and Asia Pacific.
