The “Key” Employee Exception

Can You Be Too Important For FMLA Protection?

The FMLA, or “Family Medical Leave Act,” is a federal law with which many people are already familiar, and has ensured job protection for a countless number of workers during their time of need. Whether it is a personal medical crisis or a medical crisis within the family, the law serves as protection so an employee will never have to choose between a sick family member and work. Because of the law’s ubiquity, numerous questions of FMLA eligibility arise, especially when it concerns a “Key” employee. So, what is a key employee? How are they defined under the FMLA? Can you really lose eligibility for being important?

What is a “Key” Employee?

Before we go into FMLA eligibility, and how it affects a key employee, we must first define what a key employee is. A key employee is an employee with a large stake in the company or an employee whose salary is large enough that he/she is vital to the company’s survival. A “key employee” is generally a salaried, FMLA-eligible employee who is among the highest-paid 10 percent of all the employees employed by the employer.

A Question of Restoration

A key employee is eligible to file an FMLA claim. But there’s a catch. Because of the significant impact, a key employee has on a company, an employer may deny job restoration to a key employee after taking FMLA leave. The reasoning for this is tricky, and minor inconveniences cannot be used as a reason to deny job restoration. An employer may determine in good faith that a key employee on FMLA leave cannot return because of the disastrous economic impact of their restoration, not their absence. Simply, a key employee who files for FMLA leave might be denied their former job upon returning. An employer must provide written notice to a key employee of these potential consequences of reinstatement upon learning of the employee’s intent to use FMLA rights.

The FMLA is an important safety blanket, not only for the average worker but also for high-salaried employees. The nuances of the law allow room for employers to protect their company under threat of economic hardship. Key employees play a vital role in their company and therefore have a certain level of responsibility to not only their employer but themselves. It is important for all employees to understand their eligibility under the FMLA and how it impacts their employer.

If you have questions about the FMLA, whether an employee or an employer, please contact us. We are here to help.

-JRS for the firm. 

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