Legal speak

The following is a true and correct portion of the Code of Federal Regulations:
d) All public agencies are covered by FMLA regardless of the number
of employees; they are not subject to the coverage threshold of 50
employees carried on the payroll each day for 20 or more weeks in a
year. However, employees of public agencies must meet all of the
requirements of eligibility, including the requirement that the employer (e.g., State) employ 50 employees at the worksite or within 75 miles.
29 CFR 825.108
So… the company is covered but not the employee? What?
While I find humor in listening to conversation after conversation between my boss and other attorneys as they discuss laws they cannot figure out (Before you think it--I am not technically eavesdropping as the reason I sit where I do is because I have a knack for hearing conversations when I am working, not realizing it, and being able to remind or follow up on some of her discussions and she likes that), after two days of phone calls and unreturned phone calls from federal entities to clarify the above, I am as frustrated as she is. Do they mean that the employee is covered as long as the agency employs at least 50 people regardless of the number of weeks? Or are they just outright contradicting themselves?