How Does a Leave of Absence Work? Types of Leave Explained

Making the decision to take time off work can be a big one. For employees, there’s the need to understand which type of leave of absence applies, and whether it’s covered by employment law or company policy. For employers, there’s the added responsibility of ensuring your human resources team complies with any and all applicable laws.

So how does a leave of absence work, and are there any differences between federal and state laws? Who qualifies for a paid leave vs. unpaid leave of absence? And how long does a leave of absence usually last? Here’s everything you need to know about leave of absence policies, eligibility criteria, and leave of absence requests.

How Does a Leave of Absence Work?

A leave of absence is a period of time off work, usually for a qualifying reason, such as a serious health condition, jury duty, military service, or a sabbatical. Different types of leave have different eligibility criteria and legal requirements. Most types of leave fall into one of two broad categories:

• Mandatory leave is required under state or federal law, such as the Family and Medical Leave Act (FMLA). This type of leave is generally unpaid, but provides job-protection, which means the employee can’t be fired while on leave.
• Voluntary leave is often provided as an employee benefit, and companies have more discretion over whether or not to provide it. For example, a company might offer personal leave or a sabbatical after an extended period of employment.

Whether or not leave is paid or unpaid often depends on company policies, although some states offer paid leave and short-term disability insurance programs.

How Long Is a Leave of Absence?

In theory, a leave of absence (LOA) can be for any length of time, but in most cases, it will be determined by the applicable leave law or company policy.

For example, FMLA leave allows for up to 12 workweeks of job-protected leave in each 12-month period, or 26 weeks for military caregiver leave. However, that doesn’t mean an employee needs to use up all their leave or take it all at once.

Employee leave can be taken in any of the following forms:

• A continuous leave of absence lasts for a single continuous period, such as an employee using 12 weeks of maternity leave following the birth of a child.
• An intermittent leave of absence is one in which the employee uses their leave allotment in smaller increments instead of all at once. This may be necessary if the employee has a medical condition that requires occasional treatments.
• An extended leave of absence is one that exceeds the amount of time ordinarily available for employee leave. An employee might need to make a special request or use multiple types of leave to account for extraordinary circumstances.

In most cases, you can’t ask employees to work while on a leave of absence, but they can choose to catch up on work voluntarily while on leave.

Reasons for Taking a Leave of Absence

Employees can request a leave of absence for a wide range of situations, from medical reasons to personal reasons. It’s important to understand these different types of leave in order to categorize them properly and track leave balances accurately.

Here are some of the most common types of employee leave:

• A medical leave of absence applies when an employee needs to take time off for a serious health condition or short-term disability. This type of leave is often covered by FMLA or the Americans with Disabilities Act (ADA), and includes protection for mental health conditions like anxiety and PTSD.
• Family leave applies when an employee needs to take time off to care for an ill or injured family member. This also extends to parental leave following the birth of a child, the adoption of a child, or the placement of a child in foster care.
• Military leave allows employees to respond to the deployment of an active duty service member, or to care for an injured service member or veteran.
• A sabbatical leave is a voluntary leave of absence that enables employees to take a course, spend time with their family, or pursue a personal project.
• Bereavement leave allows employees to attend a funeral or memorial service, grieve, or make arrangements following the loss of a loved one.

Which Leave of Absence Laws Apply?

Knowing which leave of absence laws apply is the first step in determining how a leave of absence works. Here are four of the most applicable laws to consider:

• The Family and Medical Leave Act (FMLA) applies to “covered employers,” including private companies with over 50 employees. Eligible employees can take up to 12 workweeks of leave for qualifying medical or personal reasons, while retaining their health insurance and job protections.
• The Americans with Disabilities Act (ADA) requires most employers to provide reasonable accommodation to employees with a disability. This could include a leave of absence, a flexible work schedule, or the ability to work from home. 
• The Uniformed Services Employment and Reemployment Rights Act (USERRA) pertains to military leave for active duty service members.
• State leave laws like the California Family Rights Act (CFRA) often overlap with FMLA, but may provide additional benefits, like paid parental leave.

Best Practices for HR Teams

Employment laws can be complex, but with the right systems in place, you can set up a leave of absence management process that works for you. Here are four best practices for your HR team to keep in mind to facilitate employee leave requests: 

1. Create a personal leave policy.

Having a personal leave policy helps to ensure that you apply your policies fairly and consistently for all team members. Consider having a separate remote work policy to distinguish between a leave of absence and working from home.

Include these policies in the employee handbook and share them with new hires during the onboarding process. Not only will they appreciate the clarity, a generous personal and sick leave policy can help to increase employee retention.

2. Use a leave management system.

Processing leave of absence requests manually isn’t just an HR compliance risk — it’s also inefficient. When you use a leave management system like Pulpstream, you can turn an 8-hour process into a 15-minute task thanks to HR automation.

Pulpstream’s cloud-based platform uses a custom rule engine to determine eligibility for leave based on state, federal, and local laws. Plus, you can keep employees informed every step of the way with automatic email and SMS notifications.

3. Request documentation.

Some types of leave require supporting documents such as medical certifications. Use an online portal to request these documents while complying with FMLA confidentiality requirements, which require you to store them separately from other personnel files.

Pulpstream’s self-service portal adheres to HIPAA and GDPR security practices and allows employees to upload certifications and recertifications with ease.

4. Track leave balances.

Finally, it’s important to track employee leave and attendance carefully. In some states, employees accrue sick days or paid time off (PTO) based on how many hours they’ve worked, and in other cases, their tenure will determine their leave eligibility.

This is especially important with FMLA, which entitles employees to 12 workweeks of leave in either a fixed or rolling 12-month period.

Make Leave of Absence Management Work for You

Handling a leave of absence can be challenging for everyone involved. Employees may have a serious medical condition or family responsibilities they need to attend to, while your human resources team needs to comply with state and federal employment law. The purpose, length, and eligibility criteria of a leave of absence can all vary.

Leave of absence automation can streamline the process by automatically assessing an employee’s eligibility for leave and tracking their remaining leave balance. You can use it to enhance your HR team and guide employees through the process to ensure they know how a leave of absence works.

Request a demo today to see for yourself!