Practice Pointer: The Complexities of Employee Leave Management

September 18, 2025

Creating a process to address and manage employee leaves of absence while meeting legal requirements can be challenging and complex to navigate. To make things more complicated, leave programs are constantly expanding and evolving with new legislation at the state and/or local level. Therefore, employers should take the time to carefully design, plan, and allocate the necessary budget to manage leaves of absence effectively.  

When designing employee leave policies, employers may think a single, extensive general policy will cover all situations. However, leave management is a multi-layered process that requires well-defined, specific guidelines. These policies ensure that employees understand their rights and obligations and also help reduce the risk of disputes or grievances. As a best practice, employers should regularly review their leave policies to ensure they are up-to-date and compliant with federal requirements, as well as state and local regulations.

Common Types of Leave

Managing employee leave in the United States is one of the most complex compliance challenges facing HR professionals today. With over 600 distinct leave-related laws spanning federal, state, and local jurisdictions, including mandates for medical, family, bereavement, military, and other types of leave, employers must navigate a constantly evolving legal landscape. Each state and city may impose its own requirements, which often overlap or conflict with federal standards, such as the Family and Medical Leave Act (FMLA) or the Americans with Disabilities Act (ADA). The result is a dense web of regulations that demand careful tracking, policy customization, and ongoing legal awareness to ensure compliance and support employees effectively. Below, we have summarized the most common types of leave:

• FMLA Leave: The federal FMLA allows eligible employees of covered employers to take up to 12 weeks of unpaid leave, with job protection for covered purposes. For example, the birth and care of a newborn child, adoption, or to care for a family member with a serious health condition.

• State Paid Leave: Several states have enacted paid leave requirements that are different or more robust than the federal leave requirements. Employers must be aware of all laws that apply to them and ensure compliance.

• Military Leave: Employees serving in the uniformed services may be entitled to time off for training, deployment, or other military duties.

• Bereavement Leave: Time off to grieve and attend funeral services following the death of a family member or close relative. While not federally mandated, many employers provide this type of leave to support employee well-being during difficult times.

• Sick Leave: Time off provided to employees who are ill or injured and unable to work. Sick leave may be paid or unpaid, depending on employer policy and applicable state or local laws. It can also be used for medical appointments or to care for a sick family member. Employers should ensure that their sick leave policies are clearly communicated and consistently applied across departments to avoid confusion and ensure fairness.

• Other: Additional forms of leave may be required under law or provided voluntarily by the employer, such as time off for jury duty, voting, or school activities.

Complying with Federal Requirements

The size of the company determines the specific laws it must comply with, such as the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA). FMLA provides eligible employees of covered employers (public-sector employers, elementary and secondary schools, or private employers with 50 or more employees) up to 12 weeks of unpaid, job-protected leave annually for specific family and medical reasons. In addition to understanding the Family and Medical Leave Act, employers should also stay informed about any updates or amendments to the Act that may impact eligibility, coverage, or compliance obligations.

While private companies with fewer than 50 employees are not subject to the FMLA regulations, they are required to comply with the ADA if they employ 15 or more employees. The ADA prohibits discrimination against federal employees and individuals with disabilities in several areas, including employment. As a best practice, employers should have an interactive dialogue with their employees to determine whether an ADA accommodation is needed and can be reasonably provided.

While the FMLA and ADA apply to employers of a certain size, the Uniformed Services Employment and Reemployment Rights Act (USERRA) applies to all employers, regardless of size. USERRA guarantees an employee returning from military service or training the right to be reemployed at their job (or a comparable one) with the same benefits. Employees may generally take a cumulative total of five years of leave for uniformed service, including active and inactive duty, training, fitness-for-duty examinations, and funeral honors duty.

Complying With State-Specific Leave Laws

Navigating local labor laws, such as leave laws, can be challenging due to their state-specific variations; however, understanding these requirements is imperative for multi-state employers. This includes understanding sick leave mandates, which vary widely and may consist of accrual rates, carryover provisions, and usage limitations. A growing number of states have enacted paid leave programs that include leave for family, medical, and bereavement, among other qualified reasons. Additionally, cities, counties, and municipalities may have different leave provisions than those required by the state. Employers must evaluate all these details as they develop their leave policies.  

Designing and Administering Leave Policies

Employers must create clear written policies to meet both legislative requirements and employees’ needs. The answers to the following questions may help employers balance regulatory requirements with business needs while developing leave policies:

• Does the company have a parental leave policy defined as “maternity/paternity” leave? Has it been updated to reflect the Equal Employment Opportunity Commission’s (EEOC’s) guidance, and written to focus on primary and secondary caregivers?

• Is the company subject to any mandatory paid sick leave laws?

• Is the military leave policy equitable to other leave policies?

• Does the company’s policy detail what happens when different leave policies overlap?

• Does the company’s sick leave policy align with both federal and state requirements, and is it clearly defined in the employee handbook?

When a particular scenario arises, employers must have all the necessary details required to apply the correct type of leave and ensure compliance with the various applicable leave laws. Consider the employee leave request and the following:

• Identify the situation: employee status, length of employment, type of leave needed.

• What do applicable federal laws dictate in this situation?

• What do applicable state laws or regulations require for this type of leave? 

• Are there specific local, county, or city regulations that impact the leave? 

• What does the company’s policy currently state? 

Challenges of Leave Management

Some common challenges HR professionals face when administering leave include ensuring accurate payroll processing during both unpaid leave and paid time off, tracking employee absences, and reconciling leave with work hours, work schedules, or remote work arrangements. HR professionals often carry the administrative burden to track leaves, coordinate forms and paperwork, communicate with the direct manager, and ensure that employees across each department are treated consistently and fairly. To further complicate the administrative burden, employees may need leave in smaller increments rather than in one continuous block, known as intermittent or reduced-schedule leave. For example, an employee with a chronic serious health condition may require time off for ongoing medical treatments.

Leave Management Solutions

There are many factors affecting how an employee leave management program should be designed, and the process is often not clear-cut. Employers don’t have to try to navigate employee absences alone and can lean into technological advances such as Leave Management Solutions.

Leave Management Solutions can offer varying support, from providing a system for tracking both paid and unpaid leaves, communicating and sending applicable leave notifications directly to employees, tracking pay period usage, and, in some cases, reducing the administrative burden employers have in the leave management process through tools such as leave management software or absence management software. These solutions are not a one-size-fits-all approach, and employers should thoughtfully review the different options available and determine which support (if any) may work best for their company.

Benefits of a Comprehensive Leave Management Strategy

A well-designed leave management strategy does more than ensure compliance; it can have a profoundly positive impact on the entire organization. Employers who implement thoughtful policies regarding paid time often see:

• Better work-life balance for employees, and overall stronger employee experience, which improves retention and productivity

• A stronger company culture that demonstrates care for employees’ personal and family needs

• Improved overall well-being by supporting employees during the sensitive times when taking leave is necessary

• The ability to stay compliant with federal, state, and local regulations, mitigating risk

A thoughtful sick leave policy not only supports employee health but also contributes to a more resilient and productive workforce. In addition to compliance and employee well-being, companies that offer paid sick leave often experience reduced presenteeism, where employees feel pressured to work while ill, which can negatively impact productivity and morale.

Ultimately, a comprehensive leave management strategy helps employees feel supported while enabling the organization to operate smoothly and fairly, even during periods of increased employee absences.

Hilb Group | HR Consulting can help navigate these leave management complexities. For assistance with creating an employee leave management policy for your business or if you have questions regarding this Practice Pointer, please email us.