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September 4, 2008

Costs and Benefits of the FMLA

Fmla On the heels of Bird & Knopf's surprising finding that the costs of disability laws are much higher than expected comes a new study by Jeffrey Eisenach (Criterion Economics; adjunct at George Mason) finding the same true of the FMLA.  His article, just posted on SSRN, is Assessing the Costs of the Family and Medical Leave Act.  Here's the abstract:

The [FMLA] allows eligible workers employed by covered establishments to take up to 12 weeks of unpaid leave per year. Employees may become eligible for FMLA leave when either the employee or a family member suffers from a serious health condition. Additional qualifying events include family-related responsibilities, such as the birth or adoption of a child. Various aspects of FMLA, as enforced by the Department of Labor, have become controversial, including specifically the provisions permitting employees to take "intermittent" leave for recurring health conditions. This paper reviews existing evidence on the benefits and costs of FMLA, concluding that the costs are likely much greater than the Department of Labor has acknowledged.

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September 4, 2008 in Scholarship | Permalink

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