Q&A: If another company acquired our company last month, can my employee still take FMLA/CFRA for her pregnancy and child bonding?

The answer to that question depends on whether the new company will be considered to be a successor in interest for purposes of the Family and Medical Leave Act (FMLA)/California Family Rights Act (CFRA). A covered employer for purposes of FMLA/CFRA includes a successor in interest. FMLA regulations provide guidance to an employer on this issue.

Several factors need to be reviewed as well as the totality of the entire circumstances of the acquisition to see whether the employee will have rights to FMLA and CFRA leave with the new company given that she has worked only one month with the new company.

If the new company is found to be a successor in interest, then the employee would be entitled to the same rights with the successor employer as she had with her prior employer.

Mergers and acquisitions of companies always involve legal issues that affect employees and their rights, and this is one of those situations. Any employer contemplating a merger or acquisition should consult with its labor law attorney for specific advice involving employees and FMLA and CFRA rights.

The FMLA regulations list factors to be considered:

Substantial continuity of the same business operations;
Use of the same plant;
Continuity of the workforce
Similarity of jobs and working conditions;
Similarity of supervisory personnel;
Similarity in machinery, equipment and production methods;
Similarity of products or services; and
The ability of the predecessor to provide relief.

If another company acquired our company last month, can my employee still take FMLA/CFRA for her pregnancy and child bonding?

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