In a 5-4 decision issued recently, the United States Supreme Court determined that employees are eligible for a maximum of 12 weeks leave in a 12 month period under the Family Medical Leave Act (FMLA), even if the employer failed to designate leave as required by the regulations.

In Ragsdale v. Wolverine Worldwide, Inc., the court examined whether the Department of Labor’s regulation requiring employers to grant additional FMLA time if the employer fails to notify an employee that leave will be counted against an employee’s FMLA entitlement was a valid regulation. The Supreme Court determined that the Department of Labor had overstepped its bounds and the terms of FMLA.

Interpreting FMLA literally, the court held that under the statute, employees are entitled to only 12 weeks of FMLA compliant leave within a 12-month period. Although it determined that the across-the-board penalty of continued FMLA leaves was inappropriate, it did not invalidate the written designation requirements found in the statute.

What does this mean for employers? Employers should continue to provide written designation of leave time to employees, normally within two to three business days after leave begins, and should comply with all other written notice requirements, including the statutorily mandated poster and the complete leave designation letter.
However, when an employee fails to properly designate, it will not be required to grant additional FMLA leave time provided that the employee already has received the 12 weeks of FMLA compliant leave required by the Department’s regulation.

Employers must ensure that whatever leave the employee has received would be “FMLA compliant.” This means that the employers must continue the employee’s health benefits as if the employee were still at work, and provide job-protected time as required by FMLA for only 12 weeks in a 12-month period.