A general contractor employs 15 full-time workers. Under the Family and Medical Leave Act (FMLA), this employer:
Correct Answer
A) Is not covered by FMLA requirements
The FMLA applies only to employers with 50 or more employees within a 75-mile radius. With only 15 employees, this contractor is not subject to FMLA requirements, though state laws may still apply.
Why This Is the Correct Answer
The Family and Medical Leave Act (FMLA) has specific eligibility thresholds that employers must meet before being subject to its requirements. The law only applies to employers who have 50 or more employees within a 75-mile radius of the worksite. Since this general contractor only employs 15 full-time workers, they fall well below the 50-employee threshold and are therefore not covered by FMLA requirements. The contractor is not obligated to provide the unpaid leave protections that FMLA mandates for larger employers.
Why the Other Options Are Wrong
Option B: Only needs to comply with state family leave laws
This is incorrect because FMLA only applies to employers with 50 or more employees. With only 15 employees, this contractor is not subject to FMLA requirements and therefore has no obligation to provide unpaid leave under this federal law.
Option D: Must provide paid leave for eligible employees
This is incorrect on two levels: first, the employer is not covered by FMLA due to having fewer than 50 employees, and second, FMLA requires unpaid leave, not paid leave, even for covered employers.
Memory Technique
Remember 'Fifty for FMLA' - you need at least 50 employees for the Family and Medical Leave Act to kick in
Reference Hint
Look up employment law sections covering federal labor standards and FMLA requirements in your contractor reference manual
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?