Employee Leave: A Complete Guide for HR & Employers

Employee leave laws are essential for balancing workforce needs with legal compliance. These regulations ensure employees can take time off for medical, family, or civic responsibilities while protecting businesses from legal risks.

In the U.S., leave laws exist at both federal and state levels, with some employers also implementing their own voluntary leave policies. The main types of leave include:

• Legally required leave, such as FMLA, military leave, and paid sick leave in certain states.

• Employer-provided leave, like paid time off (PTO), bereavement leave, and mental health days.

Employers must ensure proper documentation and compliance with all applicable laws while also implementing fair and consistent leave policies.

Several federal laws dictate employee leave rights across the U.S. The most prominent is the Family and Medical Leave Act (FMLA), which provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for:

• A serious health condition affecting the employee or an immediate family member.

• Childbirth, adoption, or foster care placement.

• Military family needs, including caring for an injured service member.

Employers must continue group health benefits during FMLA leave and restore employees to their prior role upon return.

Other key federal leave laws include:

• Americans with Disabilities Act (ADA) – Requires employers to provide leave as a reasonable accommodation for employees with disabilities.

• Uniformed Services Employment and Reemployment Rights Act (USERRA) – Protects job reinstatement and benefits for employees who take leave for military service.

Each of these laws come with specific compliance requirements, making proper recordkeeping and leave tracking essential for HR teams. Below are some resources to help you navigate federal employee leave laws and regulations:

What is FMLA? [Ask An HR Expert]

The CEO's Guide to FMLA Compliance

Five Best Practices for ADA Compliance

Beyond federal laws, state and local governments have implemented additional leave requirements, often expanding on federal protections. Paid sick leave laws are among the most common, requiring businesses to provide paid time off for employees to recover from illness or care for a sick family member.

Some states also mandate paid family and medical leave (PFML), offering wage replacement for extended leave due to health or family care needs. Voting leave laws also vary by state, allowing employees time off in order to vote in state and/or federal elections.

Employers operating in multiple states must stay updated on varying requirements to ensure compliance. Click on your state in the map below for a guide on specific regulations that you must follow:

Not all types of employee leave are mandated by law. Additionally, some leave policies legally required in one state may not be the same (or required at all) in another.  

Beyond legal requirements, many employers offer additional leave benefits to attract and retain talent. Employer-provided leave policies often go beyond federal and state mandates, offering flexibility and support for employees' personal and professional needs.

Some businesses provide unlimited PTO, allowing employees to take time off as needed without a fixed accrual system. Others offer extended paid parental leave, surpassing legal minimums to support new parents. Additional benefits, such as sabbaticals, volunteer days, or mental health leave, enhance workplace well-being and engagement.

Employers should evaluate their leave policies regularly to stay competitive and meet workforce expectations. Below are some resources to help you explore best practices and benchmarks for employer-provided leave programs:

Everything Your HR Team Needs to Know About PTO

Paid Parental Leave Policies for Small Businesses

HR's Guide to Creating a Mental Health Day Policy for Employees

What is SAFE Leave?

The HR Guide to Bereavement Leave and Grief Support

Are Unlimited PTO Policies Really Worth It?

Volunteer Time Off (VTO): Everything HR Needs to Know About Creating a Policy Employees Will Love

Understanding Garden Leave: What Businesses Need to Know

HR teams must carefully manage leave requests while following federal and state laws. Clear communication of leave policies in the employee handbook is vital. This includes outlining eligibility criteria, the process for requesting leave, and how leave will be managed. 

Employees need to understand their rights, such as job protection during qualified leave or how accrued sick days can be used. By providing this information, organizations can build trust and reduce misunderstandings.

Employers can ensure compliance and employee understanding of leave policies by:

• Providing written policies that outline employee leave rights and processes.

• Tracking and documenting leave usage to ensure compliance with FMLA and state-specific laws.

• Ensuring non-retaliation for employees taking legally protected leave.

• Coordinating multiple leave types when employees qualify for overlapping protections, such as FMLA and paid sick leave.

Below are some resources that help to ensure proper documentation, communication, and compliance around employee leave:

HR's Guide to Employee Record Retention [+Checklist]

HR's Guide to Payroll Compliance [+Checklist]

The Complete Guide to Creating an Employee Handbook

Why is HR Compliance Important? [+Free Checklist]

Complete HR Compliance Calendar and Important Deadlines [+Download]

Tracking and managing leave manually can be overwhelming, especially for businesses operating across multiple jurisdictions. HR software solutions can streamline leave administration by:

• Automating leave request approvals and documentation.

• Tracking employee eligibility and available leave balances.

• Ensuring compliance with FMLA, ADA, and state leave laws.

• Providing reporting tools to monitor leave trends and policy adherence.

HR technology is vital to help HR teams reduce administrative burdens while ensuring accurate recordkeeping and compliance. GoCo’s HR software provides automated tools to manage requests, track entitlements, and maintain compliance, so your team is confident that your time tracking and leave management is compliant and accurate.