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How to Keep Up with Leave Laws and Ensure Leave of Absence Compliance

Written by Romy Malviya | Jul 15, 2025 8:59:59 AM

Employee leaves of absence are a necessary part of doing business. Not only does a generous leave of absence policy support employee well-being, but your employees may be entitled to job-protected leave under state, federal, or local leave laws. Your human resources team needs to be ready to approve, track, and monitor leave.

But how can you stay on top of applicable laws when they vary from state to state and change from year to year? Here’s how to understand your legal requirements, assess complex cases, and ensure leave of absence compliance with HR automation.

What Is Leave of Absence Compliance?

Leave of absence compliance is your process for meeting your obligations under state, federal, or local employment laws. It involves knowing which leave laws apply to your organization, resolving employee leave requests fairly and promptly, and keeping a paper trail in case there are any legal issues.

Leave of absence compliance helps your organization:

  • Avoid legal liability by honoring leave entitlements for eligible employees and documenting your compliance with relevant employment laws.
  • Increase employee retention by providing them with the time off they need to address family responsibilities or treat a serious health condition.
  • Reduce abuse or fraud by verifying eligibility for each type of leave and tracking leave balances to ensure employees don’t exceed their leave entitlements.

Although some types of leave are required by law, you can also provide paid or unpaid leave as an employee benefit, like in the case of a parental leave program. Use a leave management platform like Pulpstream to field incoming employee requests, track sick leave and paid time off (PTO), and ensure leave of absence compliance.

3 Levels of Leave of Absence Compliance

When it comes to leave of absence compliance, it’s important for employers to treat all their employees fairly, but the solution isn’t a one-size-fits-all leave program. Employees may be eligible for different types of leave depending on their length of employment and even their location. Here are three levels of leave of absence compliance to consider.

Federal Leave Laws

Federal laws apply in all 50 states, but they may not apply in all cases. For example, the Family and Medical Leave Act (FMLA) only applies to “covered employers,” defined by the U.S. Department of Labor (DOL) as private employers with 50 or more employees and public sector employers, such as schools and government agencies.

Employers should be prepared to navigate the following federal leave laws:

  • The Family and Medical Leave Act (FMLA) provides up to 12 weeks of leave in a single 12-month period for qualifying medical reasons, such as the employee’s own serious health condition or the illness of a family member. FMLA leave also covers the birth or adoption of a child or the placement of a child in foster care.
  • The Americans with Disabilities Act (ADA) entitles an employee to reasonable accommodation if they have a qualifying disability, such as a physical or mental health condition. This could include remote work or a leave of absence.
  • Both FMLA and the Uniformed Services Employment and Reemployment Rights Act (USERRA) apply to service members who need to take a leave of absence due to military service. USERRA allows for up to five years of military leave, while FMLA provides up to 26 workweeks of military caregiver leave.

State Leave Laws

Some state laws overlap with federal laws, while others offer additional protections. It’s important to stay informed about state leave laws because these are more likely to be changed than federal laws. FMLA has been around since 1994, but many state leave laws are relatively new or rolling out gradually over the next few years.

Let’s take a look at just a few examples of state leave laws:

  • Delaware’s Paid Family Leave program was signed into law in 2022. Payroll deductions started on January 1, 2025, and eligible employees will be able to claim benefits beginning on January 1, 2026. Delaware employers should be prepared to facilitate leave under this program and other applicable laws.
  • Colorado's Paid Family and Medical Leave Insurance (FAMLI) is a new law that came into effect between 2023 and 2024. Employees in Colorado may be eligible for disability insurance under FAMLI in addition to unpaid FMLA leave.
  • The Wisconsin Family and Medical Leave Act (WFMLA) covers some of the same scenarios as FMLA but has its own eligibility requirements. Employers in Wisconsin need to understand both laws and how they overlap.

Local Leave Laws

To make matters more complicated, some municipalities have local leave laws of their own. These typically provide accrued leave, such as paid sick leave or PTO, based on how many hours an employee has worked for you. Here are just a few examples:

3 Steps to Leave of Absence Compliance

Leave of absence laws can be complex, but that doesn’t mean you have to leave HR compliance up to chance. Follow these steps to understand, navigate, and track your compliance with local, state, and federal leave laws.

1. Stay on Top of Leave Laws

First, stay informed about changes to applicable leave laws. Even existing laws can be reinterpreted from time to time. For example, the Department of Labor recently issued guidance on applying FMLA for remote employees. Use a platform like Pulpstream to automatically update your processes with the latest legal requirements.

2. Create Your Own Leave Policies

Next, standardize your own leave policies in your employee handbook. Even voluntary leave policies that aren’t required by law should be applied fairly and consistently. For example, pregnant workers who don’t qualify for a leave of absence still have certain protections against pregnancy discrimination under federal law.

Consider creating a remote work policy to distinguish between an intermittent leave of absence, a reduced work schedule, and a flexible work arrangement.

3. Leverage Leave of Absence Automation

Finally, use leave of absence automation to streamline the process and minimize the administrative burden on your HR team. Keep a digital copy of FMLA forms and other documents to maintain a paper trail and demonstrate compliance.

Pulpstream’s cloud-based tools and self-service portal make it easy for employees to submit a leave request, upload supporting documents (such as a medical certification from their healthcare provider), and get automatic notifications by email or SMS.

Be Future-Ready With Pulpstream’s HR Compliance Platform

Leave of absence compliance involves adhering to federal laws that have been around for decades as well as state and local laws that have only recently been introduced. As an employer, it’s your responsibility to stay informed about your legal requirements and apply your leave of absence policies fairly to all of your employees.

Pulpstream’s leave of absence automation platform takes the guesswork out of leave of absence compliance. Our no-code platform is easy enough for non-technical members of your team to use, while our policy-based tools make it easy to incorporate multiple laws and hybrid leave models. Request a demo today to see how it works!