Leave Management has changed a lot in the past few years. What used to be a quiet, behind-the-scenes task has now become a hot topic in HR—and for good reason. With new state laws and federal updates, keeping track of time off is now a full-time job for many HR teams.
What if one missed request for leave led to a lawsuit? Or a confused employee left your company because they didn’t know how to take the time off they were entitled to? It happens more often than you might think. And with hybrid teams and multi-state offices, the risks are only growing.
At FBC, we work with HR leaders every day who are feeling the pressure to modernize their leave policies. The good news? You can keep your team compliant with the right tools and best practices. You can reduce stress and make leave management a win for both employees and HR. Learn how here.
Leave Management in 2025: More Complex Than Ever
States Are Driving Big Changes
In 2025, many states have passed or expanded leave laws. For some, these include the following:
- Paid family leave
- Mandated sick time
- Protections for mental health and caregiving
If you have remote workers or teams spread across different states, keeping up with it all can feel impossible.
Here are just a few examples:
- California expanded its Paid Family Leave program to include more caregiving situations.
- Illinois now requires clear written leave policies for all employers over a certain size.
- Colorado enforces penalties for late or incomplete leave responses.
And yes, employees know their rights and will ask questions.
Federal Policy in Leave Management May Be Next
While the Family and Medical Leave Act (FMLA) has been around for decades, it’s now under review. Lawmakers are considering adding more paid options. They may also expand eligibility to include more part-time workers.
Whether or not it becomes law, federal pressure is encouraging employers to modernize their approach now.
The Hidden Risk of Outdated Leave Management Systems
When we start working with a new client at FBC, we often ask, “How are you tracking leave now?”
You’d be surprised how many say, “It’s in a spreadsheet.” Or worse—”We kind of just figure it out as we go.”
Manual Tracking Creates Errors
When you track leave by hand, it’s easy to miscalculate someone’s balance. You might lose a request or forget an important deadline. Sometimes, companies mistakenly deny FMLA to eligible employees. Although they mean well, this error could cost them over $20,000 in penalties and legal fees!
Poor Leave Experiences Lead to Turnover
Employees remember how they’re treated when they need time off. This is especially true during stressful moments like illness, childbirth, or family crises. Confusion or slow communication can damage trust and drive people away.
A modern leave system isn’t just about compliance—it’s about showing employees you care.
2025 Best Practices for Modern Leave Management
So what does a great leave strategy look like in 2025? It’s automated and flexible. It’s built with both compliance and employee experience in mind.
1. Centralize and Automate Your Leave Tracking
Ditch the spreadsheets and paper forms. Today’s best leave tools:
- Track accruals and balances automatically
- Send alerts when someone is nearing their limit
- Integrate with payroll and HRIS systems to reduce errors
This helps you stay accurate, consistent, and legally protected.
2. Build Flexible, Standardized Policies
Yes, it sounds like a contradiction—but hear us out.
You need a clear, standard structure for tracking and approving leave. But you also need the flexibility to adjust based on the following:
- Different state laws
- Employee roles
- Varying situations
With automation, you can set templates and triggers. These can be based on location, employee type, or job level. You can do this without rewriting everything by hand.
3. Communicate Leave Clearly and Often
Employees shouldn’t have to dig through a handbook to understand their rights. They shouldn’t need to discuss time off with three separate people. Instead, use:
- Self-service portals with real-time balances
- FAQs and chatbots to answer common questions
- Email or app reminders about deadlines or documentation needs
Also, train your managers! They’re the front line of leave conversations. Many haven’t been taught how to handle them correctly or with empathy.
4. Use Data to Spot Trends
Leave data can tell you more than you think:
- Are certain teams experiencing high burnout or frequent medical leave?
- Is one location misusing sick time?
- Are your policies inclusive of caregivers or mental health needs?
By reviewing leave trends quarterly, you can do more than improve policies. You can also boost morale, productivity, and retention.
How Automation Supports a Better Leave Experience
Let’s get practical: what does automation really do for you?
Streamlined Requests and Approvals
Instead of emailing HR or filling out paper forms, employees can:
- Submit leave through a portal or app
- Upload documents securely
- Get automatic confirmation and status updates
This means fewer back-and-forth emails and a clear audit trail for HR.
Automatic Compliance Tracking
Good leave software stays up to date with the latest legal changes. It adjusts your workflows accordingly. You get alerts about key dates like return-to-work or certification deadlines. This helps you stay compliant without reading every new law manually.
Less Burnout for HR Teams
Instead of spending hours chasing down paperwork or answering repeated questions, your team can focus on:
- Coaching managers
- Improving the employee experience
- Making strategic workforce plans
And yes—your team will thank you for it.
Leave Management: Key Points
- Leave Management in 2025 is more complex than ever due to changing state and federal laws
- Manual tracking leads to costly mistakes and frustrated employees
- Automation helps HR teams stay compliant, consistent, and employee-friendly
- Best practices include centralizing leave data, standardizing but personalizing policies, and improving communication
- Modern tools not only save time but also create a better experience for everyone involved
At FBC, we help HR leaders take the stress out of leave management with tools and strategies that actually work. Whether you need help building policies, choosing the right software, or training your managers—we’re here to help.
Ready to modernize your leave systems before the next law hits your desk? Let’s talk.