Leave increasingly represents a fundamental part of an employer's total rewards strategy, with organizations expanding leave categories to include volunteer, wellbeing, cultural and menopause-related leave.
As remote work and employees' expectations for leave benefits rise, employers face growing complexities in navigating company policy and compliance with overlapping federal, state and local leave laws. State leave laws differ in available time off, reasons an employee can use leave, eligibility requirements, documentation needed, pay, and job and benefit protection requirements. Compliance becomes a moving target — especially for organizations employing people in multiple locations.
Failure to manage leave properly can trigger severe consequences, including legal liabilities and financial penalties. Poor tracking, ambiguous policies and ill-equipped HR staff can lead to discrimination claims, inaccurate leave balances, operational disruptions, diminished employee morale and increased turnover.
Common leave management scenarios employers navigate
Multiple leave types, overlapping laws and remote work environments contribute to the complexities of leave management. Consider these scenarios
Company voluntary leave
Many employers offer paid leave programs exceeding federal, state and local mandates. In 2025, the most common voluntary leave types exceeding requirements include bereavement (91%), jury duty (83%), personal (51%) and military (49%) leave, according to Gallagher's 2025 Benefits Strategy & Benchmarking Survey. Roughly one-fourth of employers offer family and medical leave benefits surpassing the requirements of the Family and Medical Leave Act (FMLA).
Organizations should establish formal policies to ensure consistent and equitable treatment across the workforce.
Managing company policies with state leave benefits
When organizations offer robust leave plans that exceed state or federal offerings, these employers may assume they don't need to designate leaves as FMLA. However, employers must carefully track, document and communicate the application of all relevant laws to minimize risk and to ensure that employees use all the leave available to them.
Management involvement
A management team inadequately trained in the basic rules of FMLA and the Americans With Disabilities Act (ADA) puts your organization at risk. Managers should know what questions they can and cannot ask, and when to involve HR.
Leave in a remote environment
Remote work may encompass blurred boundaries with employees sometimes performing work while on approved leave. In 2023, the Department of Labor (DOA) updated FMLA guidance to clarify eligibility and management of leave for remote workers. DOA also addressed the intersection of FMLA and ADA.
Correctly interpreting and applying relevant laws is critical to ensuring remote employees receive the same leave considerations as those in traditional work settings.
Outsourcing leave management
To mitigate compliance risks, many organizations outsource some or all aspects of leave management, allowing HR teams to focus on other strategic initiatives. Leave management specialists ensure compliance with US regulations while promoting consistent and fair treatment. Key benefits of outsourcing include:
- Compliance confidence: Experts stay updated on ever-changing leave laws, reducing employer liabilities from misapplied policies.
- Reduced leave administrative burden: Offloading paperwork related to tracking, documentation, certifications and government communications helps prevent HR staff from becoming overwhelmed during periods of high claims.
- Consistent and fair application of leave policies: Uniform handling of leave requests across departments and locations can reduce discrimination claims and litigation exposure.
- Employee trust: Employees, especially in smaller organizations, may feel more comfortable with impartial third-party handling of sensitive leave information.
Gallagher's experienced leave consultants offer tailored solutions to meet organizational needs while ensuring compliance. Whether addressing FMLA or state and local laws, Gallagher can help you:
- Create, review and manage company-specific policies, including, but not limited to, parental, medical and family care leave.
- Review and update HR processes to ensure compliance with company policies and applicable laws.
- Provide training to management staff on the basics of FMLA, state leave and ADA compliance.
- Provide full leave administration including employee leave communications and support, explaining eligible leaves, managing paperwork and supporting employees returning from leave.
- Facilitate payroll adjustments and track benefit premiums during leave periods.
- Manage communication between insurance carriers and other third parties.
Take a hybrid approach to outsourcing leave management
Some employers, especially smaller organizations with fewer leave requests, rely on consultants for policy design, compliance reviews or as an escalation resource for more complex cases, while keeping day-to-day leave administration in-house. We can customize service plans to meet your needs and scale up to tackle unexpected challenges or special projects.
Large employers with established HR departments often use us as an extension of their HR teams, assisting with specialized projects or providing interim support to fill staffing gaps.
Learn more about experienced leave management support.
