FMLA compliance reviews conducted over the past year continue to reveal recurring patterns of risk that employers should be mindful of as they enter 2026. These issues rarely arise from bad intent. Instead, they most often stem from administrative errors, manager actions, and the growing complexity of coordinating federal FMLA requirements with evolving state paid leave programs.
Below are the most common compliance gaps identified in recent FMLA audits.
Administrative and Procedural Failures
• Failure to recognize leave requests when employees do not use specific terms such as “FMLA” or “medical leave,” despite providing enough information to suggest a qualifying reason
• Missed notice deadlines, including failure to issue Eligibility Notices within five business days and Designation Notices within five business days of receiving sufficient information
• Miscalculation of leave entitlements due to use of the wrong twelve month measurement method or inaccurate tracking of intermittent leave
• Inadequate recordkeeping practices, including storing medical information in general personnel files rather than maintaining separate confidential records
Interference and Discouragement Risks
• Asking employees to perform work while on FMLA leave, even sporadically or informally
• Discouraging comments suggesting it is a bad time to take leave or implying negative career impact
• Attendance policies that improperly count FMLA protected absences as occurrences under no fault systems
Recent court decisions issued in 2024 and 2025 reaffirmed that discouragement alone may constitute an FMLA violation, even when leave is ultimately approved.
Reinstatement and Retaliation Concerns
• Failure to return employees to the same or a virtually identical position with equivalent pay, benefits, status, and work schedule
• Subtle post leave actions such as shift changes, reduced duties, or reassignment to less desirable roles
• Heightened scrutiny or micromanagement immediately following an employee’s return from leave
• Automatic termination at the end of twelve weeks without evaluating whether additional leave may be required as a reasonable accommodation under the ADA
Modern Compliance Challenges Entering 2026
• Remote work eligibility errors caused by incorrect worksite determinations
• Failure to coordinate FMLA with new state paid family and medical leave programs becoming effective in 2026, including those in Delaware, Maine, and Minnesota
• Risk of double counting leave or improperly administering wage replacement benefits
Why FMLA Audits Matter
Moderate FMLA violations can result in settlements ranging from $80,000 to $300,000, depending on factors such as back wages, lost benefits, liquidated damages, and legal costs. In many cases, liability arises not from intentional misconduct but from documentation gaps, missed deadlines, and inconsistent execution.
A proactive FMLA compliance audit allows organizations to identify issues early, strengthen consistency, support managers, and reduce the likelihood of complaints, investigations, or litigation.
Upcoming Training Opportunity
To support HR professionals and HR consultants who want to build the skills needed to conduct compliant FMLA audits, we are launching a 2 Day FMLA Compliant Audit Certificate Program.
📅 March 2nd and March 3rd, 2026
FMLA Audit Certificate Program
This live instructor led program provides a structured, practical framework for evaluating FMLA compliance and execution, reviewing policies and case files, identifying risk, and developing defensible corrective action plans for 2026 and beyond.
Elga Lejarza
Founder & CEO
HRTrainingClasses.com
HR.Community



