June 2025 Statutory Update

Click HERE to view and download the full Update

In this Update:

Family and Medical Leave Updates

Colorado Family and Medical Leave Insurance (CO FAMLI)

Amendment (eff. 1/1/26)
Regulations Updates (eff. 7/1/25)

Maine Paid Family and Medical Leave (ME PFML)

Reminder
Claims Administrator Selected
Updated Resources

Maryland Family and Medical Leave Insurance (MD FAMLI)

Official Program Delay (2027-2028)
Amendments

Maryland Parental Leave Act (MPLA) – Amendment (eff. 10/1/25)

Minnesota Paid Leave (ME PL) – Updates

Oregon Paid and Unpaid Family and Medical Leave (PLO and OFLA)

Paid Leave Oregon (PLO) Amendments (eff. 9/2025)
Oregon Family and Medical Leave Act (OFLA) Amendments (eff. 9/2025)
Paid Leave Oregon (PLO) – State Average Weekly Wage and Maximum Weekly Benefit (eff. 7/6/25)

Washington Paid Family and Medical Leave (WA PFML)

Amendments (eff. 7/27/25 and 1/1/26)
State Average Weekly Wage and Maximum Weekly Benefit (eff. 1/1/26)

 

Accrued Paid Leave Updates

Alaska Earned Paid Sick Time – Model Notice Available (eff. 7/1/25)
Cook County, IL Paid Leave – Updated Regulations (eff. 4/10/25)
Missouri Earned Paid Sick Time – Repeal Status
Nebraska Healthy Families and Workplaces Act – Amendments (eff. 10/1/25)
New York City Earned Safe and Sick Time – Amendment, Updated Model Notice (eff. 7/2/25)
Philadelphia, PA Promoting Healthy Families and Workplaces Act – Amendments (eff. 5/27/25)
Oregon Paid Sick Time – Amendments (eff. 1/1/26)
Washington Paid Sick Leave – Amendment (eff. 7/27/25)

 

Other News

Indiana Leave for School Conferences – NEW (eff. 7/1/25)
Iowa Parity for Adoptive Parents – NEW (eff. 7/1/25)
New York COVID-19 Sick Leave – Expiration Reminder (7/31/25)
New York City Lactation Accommodations – Amendments, Model Policy (eff. 5/8/25)
Washington Domestic Violence Leave – Amendment (eff. 1/1/26)
Washington Pregnancy and Breastfeeding Accommodations – Amendments (eff. 1/1/27)

The importance of manager training in leave of absences and accommodations

Last month, I had the privilege of presenting at the DMEC Compliance Conference. This event brought together leaders in the leave of absence (LOA) industry and compliance experts to discuss the latest trends and challenges in managing employee leaves and accommodations. The conference underscored the importance of staying informed and proactive in navigating the complexities of the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and various other federal, state, and local laws. The topic I shared at the conference focused on a critical area of concern for employers: manager training.

brainstorming, man and woman

In today’s workplace, effectively managing employee leave of absences and accommodations is crucial. As businesses navigate the complexities of a diverse workforce, the role of managers in administering the leave and accommodation process is paramount. The significance of manager training in this area cannot be overstated, as it addresses the challenges that employers must prioritize to foster a supportive and compliant work environment.

The landscape of employee leave management is continually evolving, influenced by legislative changes, workforce demographics, and technological advancements. Laws such as the FMLA and ADA mandate employers to provide leaves of absence and reasonable accommodations, along with other requirements for employers such as non-retaliation and ensuring non-discriminatory practices. However, the intricate nature of these laws often presents challenges for managers who may lack comprehensive training in interpreting and effectively complying with these regulations.

72% of respondents cite lack of manager understanding of roles and processes as a key administrative pain point. Making it the #1 pain point for leave administration.

The number one pain point in leave administration

Managers are often the first point of contact for employees requesting leave or accommodation and play a crucial role in ensuring compliance with FMLA and ADA requirements. When managers lack adequate training, they may unintentionally create compliance risks for their organizations. The most critical step occurs at the beginning—the timely recognition by the manager of the need for leave or accommodations as communicated by the employee.

This pain point has a few challenges of its own when it comes to solving it:

  1. Complexity of employer requirements: The intricate nature of leave laws, including the FMLA and ADA, can feel overwhelming for managers. The sheer volume of information and the nuances of these regulations may lead them to believe they need to understand every detail to ensure compliance. This perception can create anxiety and hesitation, causing managers to second-guess their decisions or avoid addressing leave requests altogether. It’s essential to acknowledge that while the policies are complex, managers don’t need to be experts; they simply need to grasp the key elements that will enable them to support their employees effectively.
  2. Inconsistent training standards: Many organizations lack standardized training programs and resources for managers, resulting in varying levels of knowledge and competence across the management team. This inconsistency can create gaps in compliance and employee support.
  3. Limited resources and time: Managers often juggle multiple responsibilities, leaving little time to understand leave and accommodations, especially when it is not a regular occurrence. This lack of time can hinder their ability to fully understand and effectively initiate the process.
  4. Communication barriers: Effective communication is crucial for managing leave requests; however, many managers struggle with how to approach sensitive conversations with employees regarding their leave needs or accommodations.

 

Business woman against window

Where to focus the training and resources

One of the main points I emphasize when discussing manager training is to avoid getting too deep into the details and instead to provide general information that managers can actually use. This usually includes:

  • LOA and accommodations basics
  • An overview of covered reasons and situations
  • How to recognize a request
  • High-level information about your LOA and accommodations processes
  • Common mistakes to avoid

Most importantly, the training should emphasize that there are no magic words an employee must use to initiate these processes. Instead, managers should actively listen and use open-ended questions to understand the nature of the employee’s request. Then, the manager should assist the employee in contacting the right person or group to initiate a claim, allowing the administrator to take over from there.

 

Strategies to implement

As we continue to see new and updated regulations at the federal, state, and local levels, administering these employee rights and benefits will become increasingly complex. Ensuring that your company identifies and initiates these requests in a timely and appropriate manner will remain critical to maintaining compliance.

Practical strategies for implementing effective manager training should start with:

  1. Assessing your managers’ understanding of LOA and accommodation, including covered reasons and situations, and your company’s processes
  2. Identifying the type and level of training(s) needed such as complete end-to-end training, annual refresher, or point-in-time refresher.
  3. Develop, deliver, and evaluate training to ensure you address the knowledge gap.

When developing your manager training, consider other avenues beyond the traditional programs. This could be:

  • Utilize e-learning and on-demand resources: Leverage technology to provide flexible training options, such as e-learning modules and on-demand resources. This allows managers to learn at their own pace and revisit materials as needed.
  • Incorporate real-life scenarios: Utilize case studies and role-playing exercises to help managers practice handling leave requests and accommodations effectively. This hands-on approach can build confidence and improve their communication skills.
  • Establish a mentorship program: Pair less experienced managers with seasoned mentors who can provide guidance and support. This mentorship can help new managers navigate complex situations and reinforce their training.

The significance of manager training regarding FMLA and ADA compliance cannot be overlooked. As we navigate the complexities of employee leave and accommodation requests, organizations must prioritize equipping their managers with the tools and knowledge necessary to effectively support their employees. By investing in manager training and resources, employers can reduce compliance risks, enhance employee satisfaction, and foster a culture of support and understanding within the workplace.

Female manager leading a team meeting

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

Marsh McLennan Agency’s Absence, Disability, and Leave practice specializes in providing organizations with the insights and strategies needed to enhance their leave management processes. Our team of experts can help identify the key areas where training is needed and offer guidance on best practices for developing effective training programs. With over 25 years of experience, we understand the complexities of leave laws and can help organizations create a supportive environment that empowers managers to navigate these challenges with confidence. Contact us to learn how we can support your efforts in improving manager training and compliance in leave administration.

Navigating compliance in remote work and return-to-office transitions

As the workplace continues to evolve, the dynamics of remote work and the push for return-to-office (RTO) mandates present unique challenges and opportunities for employers. With a growing emphasis on the rights of employees with mental health conditions under the Americans with Disabilities Act, employers must navigate accommodation requests while supporting employee well-being. This blog aims to provide insights into how these issues impact LOA and accommodation policies.

The rise of remote work

The increase in remote work due to COVID-19 has fundamentally changed where and how many people in the United States work. This transition has granted employees greater flexibility and has prompted employers to adapt their leave of absence (LOA) and accommodation policies. As remote work blurs the lines between personal and professional boundaries, employers must recognize that remote employees may utilize LOA differently than in-office staff, often remaining more connected to their work. Addressing these challenges involves:

  1. Supportive culture: Employers should foster open communication about the importance of taking time off and regularly check in with employees to assess their well-being. This proactive approach creates a culture that prioritizes mental health and encourages appropriate use of LOA.
  2. Stay informed: Employers must stay updated on federal, state, and local regulations regarding leave benefits. With numerous jurisdictions implementing paid family and medical leave (PFML) and paid sick leave requirements, it is crucial for employers to review their policies regularly to ensure alignment with legal obligations. This ensures alignment with legal obligations, allowing effective support of employee needs.
  3. Location impact: The location of remote work also complicates compliance with leave benefits. Different jurisdictions have varying requirements for Paid Family and Medical Leave (PFML) and paid sick leave, posing challenges for employers as they navigate these nuances.
Young Woman Working Remotely From Home With Laptop and Coffee

The Shift Back to In-Office Work

Many companies have announced RTO mandates, citing reasons like collaboration and company culture. However, there are concerns about how RTO will affect employee morale and productivity, particularly those who have adapted to remote work.

With the implementation of Return to Office (RTO) mandates, many employers are experiencing a rise in employee leave of absence (LOA) and accommodation requests. The transition to remote work alleviated several issues that typically lead to such requests. As employees adjust to being back in the office, this may trigger requests for continued remote work, often linked to stress or mental health concerns. Employers should understand the underlying reasons for these accommodation requests, which may extend beyond the desire for flexibility or to avoid commuting.

Evaluating office conditions—such as parking availability and workspace privacy—can help identify potential issues affecting employee comfort. For employers promoting RTO for collaboration and culture, investing in office spaces that meet employee needs is essential. While standardizing processes to bring employees back to the office can pose challenges, employers must thoughtfully address accommodation requests. These requests should be consistently reviewed following an established process outlined in company policies or handbooks.

Seeking employee feedback on LOA and leave offerings is vital to understanding their needs and experiences. Training managers to communicate effectively about these benefits and recognize indirect signs or requests for LOA or accommodations can further support employees during this transition.

 

Remote work as a valid accommodation request

Employers must recognize the compliance implications of remote work as an accommodation request and should have a plan to address these requests.

With a notable rise in requests for remote work accommodations—some linked to specific return-to-office mandates and others related to general mental health—employers must engage in this interactive process regardless of the feasibility of remote work for individuals. The ADA requires an interactive process to explore all potential accommodations, not just the option to work from home (WFH). This process may lead to the identification of alternatives, such as providing a private workspace or additional breaks, which could alleviate some of the stress or other limitations that prompted the accommodation request.

While allowing remote work may challenge employers with return-to-office (RTO) mandates, the ADA and relevant state and local laws require accommodations, including remote work, for qualified individuals with disabilities when necessary. Employers must provide these accommodations unless doing so would cause undue hardship, which may involve modifying existing policies or exceptions to RTO mandates.

 

Addressing mental health needs

Employers should be mindful of the increase in accommodation requests related to mental health as employees adjust to returning to in-person work. Some respond by offering additional PTO or specific mental health days, while others promote existing benefits such as counseling services or wellness programs to support employees during this transition.

In many situations, the employer may request medical documentation to better understand the nature of the request, assist with identifying specific restrictions or limitations, and identify potential accommodations.

Consulting Depressed Patient

Guidance from the Equal Employment Opportunity Commission (EEOC)

The EEOC provided guidance for employers on WFH or telework more than twenty years ago, which remains relevant today. Employers must analyze each remote work request case by case through an interactive process. They need to determine whether in-office work is truly essential for the job rather than relying on the job description or return-to-office mandates to support their claims.

Several factors can be considered to assess whether in-office work is essential: the reason for the position’s existence, the availability of other employees to perform the function, and the required level of expertise or skill. Additional considerations include the employer’s judgment, the written job description, and the actual work experiences of current or past employees in that role.

It’s important to note that allowing remote work in the past does not compel employers to offer it permanently. During the COVID-19 pandemic, many employers adjusted their policies to provide more remote work flexibility, sometimes as a temporary accommodation. Therefore, new requests can be evaluated individually, and requirements for in-office work may vary under current circumstances compared to earlier ones.

The EEOC has indicated that prior approvals for remote work during the pandemic may influence decisions about new requests. However, employers must still demonstrate that in-office work is essential, even if requirements have changed since the pandemic.

 

Evaluating employee work-from-home requests

Employers should carefully consider employee requests to WFH while also exploring alternative accommodations that enable effective in-office work. As part of that interactive process, the employer may request medical certification to support the request, ask clarifying questions about the employee’s restrictions and limitations, and request information about how being in the office would impact their ability to perform their duties.

To ensure a fair and objective accommodation review process, employers can take the following steps:

  • Review accommodation requests on a case-by-case basis: Each request should involve reassessing the position’s essential functions, engaging in open discussions with employees to understand their restrictions and limitations, and identifying potential accommodations.
  • Review policies regularly: Regularly reviewing and updating accommodation policies can help ensure compliance and address the evolving needs of the workforce.
  • Establish and document a standard process: Creating a standardized review process can help set expectations for employees regarding what to expect and the timeline/duration and can provide a framework for the persons responsible for approving or denying the accommodation.
  • Train managers: Providing training for managers on handling accommodation requests and understanding employee rights can foster a supportive workplace environment.

By implementing these strategies, employers can create a more effective and responsive system for managing accommodation requests.

 

Conclusion

The transition back to in-office work amid the evolving landscape of remote work presents both challenges and opportunities for employers. Organizations implementing RTO mandates must be prepared to navigate an increase in LOA and accommodation requests, particularly mental health-related ones.

Employers should prioritize identifying opportunities to support their employees during the transition, reviewing and updating any applicable LOA or accommodation policies, training managers to support employees and recognize requests for LOA or accommodation, and ensuring a consistent process to respond to requests to WFH.  By fostering a supportive environment and understanding the nuances of compliance, employers can provide a smoother transition for their workforce while maintaining legal obligations and promoting employee well-being.

Business team discussing project

Unlimited PTO: The benefits and challenges of launching an unlimited PTO program

Although it is generally not required, most employers offer their employees some form of vacation or Paid Time Off (PTO). This is typically a form of wages for services performed based on tenure or hours worked. However, a recent trend has seen some employers offering a different type of time off that is not accrued and not considered wages in most circumstances. Instead, it allows employees to take as much time off as needed – unlimited PTO, flexible time off, discretionary time off, unlimited vacation, or a variety of other names to align with a specific company’s culture.

Young family on vacation have a lot of fun

Unlimited PTO is a flexible time off policy that does not utilize accruals or balances but allows employees to take as much time off as they need for personal, vacation, or any other reason. It aims to promote work-life balance while also reducing the administrative burden of tracking accrued PTO or vacation policies.

More and more companies are shifting from traditional vacation or PTO plans to unlimited PTO in an effort to offer more flexible time off benefits to their employees. The 2025 Marsh McLennan Agency Leave of Absence and Time Away Survey indicates that nearly 34% of employers now provide some form of unlimited PTO, an increase of 7% from the prior survey results. While this type of policy appeals to employees who want to find more work-life balance, transitioning from traditional PTO or vacation to unlimited PTO involves several compliance considerations for employers.

Business women image of hands close and open a laptop computer on table after finished using it

Benefits of unlimited PTO for the employee

Unlimited PTO offers significant flexibility for employees, allowing them to take time off as needed without the constraints of accrued vacation or PTO hours. This flexibility supports a healthier work-life balance and empowers employees to manage their time according to personal and professional needs. Employers often observe that employees feel trusted to complete their work to align with deadlines and manage their work-life balance via appropriate use of their time off. As a result, employees tend to be more engaged and productive. This increased satisfaction can lead to a more positive workplace culture.

There can be challenges for employees who struggle with the flexibility and utilize less time off than they would under a traditional PTO or vacation plan. Still, employers can take steps to help employees feel comfortable with unlimited PTO. This typically involves setting a minimum usage requirement, encouraging employees not taking time off to do so, and ensuring that leadership and managers set an example by utilizing their own time off.

 

Benefits of unlimited PTO for the employer

From the employer’s perspective, implementing unlimited PTO can substantially save administrative time and resources. Employers can focus on more strategic initiatives by eliminating the need to track accruals, usage, and balances rather than managing complex PTO and vacation systems and processes. In addition, reducing liabilities associated with accrued PTO and vacation balances can result in significant cost savings. In particular, when employees separate from the company because there is no payout with an unlimited PTO program, which many states require for unused accrued PTO/vacation.

Portrait of a human resource manager a t a job interview

Compliance considerations

After an employer decides to offer unlimited PTO, they will have a few compliance considerations when it comes to transitioning from a more traditional PTO or vacation plan: developing a policy that outlines the parameters of their new program and creating a robust change-management plan to communicate the new program to all impacted employees effectively.

 

Developing a policy that outlines the parameters of their new program

From a compliance perspective, two of the most critical aspects of the transition to unlimited PTO are managing each employee’s existing PTO or vacation balance and complying with any applicable state or local accrued sick leave requirements. A few states treat accrued but unused PTO and vacation as wages, meaning that employers are prohibited from utilizing any process or policy in which an employee is forced to forfeit their earned but unused PTO or vacation. The employer cannot simply zero out or eliminate those existing balances in those locations. Although this might be technically compliant where forfeiture of PTO and vacation is allowed, it would almost certainly be poorly received by employees and potentially harm the employer-employee relationship. Therefore, treating all employees’ PTO and vacation balances the same, regardless of employee work location, is recommended.

Employers have a few options, each with their pros and cons that must be weighed as part of the decision:

  1. Payout existing PTO balances: The employer could payout all existing PTO balances as of the effective date of the unlimited PTO program. This brings a significant one-time expense for the employer but also has its positives. It is easy to understand for employees, removes any administration of prior PTO/balances, and eliminates any ongoing liability.
  2. Freeze and maintain existing PTO balances: The employer could freeze and maintain existing PTO balances as of the effective date of the unlimited PTO program. In some cases, the employer may allow the use of the frozen PTO and vacation balances with very limited use, such as when unlimited PTO is unavailable or only as required at termination. This method avoids the immediate payout costs but requires the employer to carry the liability forward, potentially indefinitely. It also requires employees to maintain balances and usage in their tracking system(s). Plus, some of the PTO hours will be paid out at a higher rate to any employees who receive a salary or wage increase before the PTO is paid out.
  3. Incorporate a transition period for utilization: The employer could define a transition period that allows or requires employees to utilize existing PTO and vacation before accessing unlimited PTO. This is typically done in one of two ways:
    1. First, create a defined term for the transition, in which all absences will draw from the existing PTO and vacation balances until they are depleted, then pay out any remainder upon the official transition. This requires unlimited PTO to be launched at some date in the future, allowing more PTO and vacation to be used. However, it does require administration during that time and ongoing for any employee who slowly draws down their PTO and vacation balance due to low utilization.
    2. Second, the use of PTO and vacation is required on an ongoing basis, even after the launch of unlimited PTO, with all existing PTO and vacation used before unlimited PTO or existing PTO and vacation being used at the start of any absence. For example, each absence’s first three days (or 24 hours) are considered PTO and vacation, and the remainder is unlimited PTO. This method reduces or eliminates many positives of unlimited PTO because it requires continued administration, avoids a one-time cost, and reduces liabilities over time.

Employers will want to balance their intended goals of launching unlimited PTO with the negative aspects of each approach to determine which method makes the most sense.

Employers should also double (or triple!) check any accrued state and local sick leave requirements that may be impacted by the transition to unlimited PTO. Many employers utilize their PTO policy to comply with state and local sick leave requirements. Utilizing unlimited PTO for compliance may add another complexity regarding specific requirements. For example, when state and local sick leave regulations require that sick leave accruals, usage, and balances are displayed on each employee’s paystub, employers need to understand how to meet that requirement with unlimited PTO. Employers must research and check with their compliance or legal team to understand any potential challenges or conflicts between state/local sick leave requirements and unlimited PTO.

 

Creating a robust change-management plan to communicate effectively

After considering the compliance challenges, employers should shift their focus to documentation and communication. Drafting an unlimited PTO policy can be challenging. Employers should establish:

  • Clear requirements around which employees are eligible
  • When unlimited PTO can be used, including whether sick leave reasons are covered, excluded, and covered under a separate policy
  • How unlimited PTO will interact with other benefits, such as short-term disability or statutory paid leaves, such as paid family and medical leave
  • Plus a variety of other details, such as the notice and approval process, any minimums or restrictions on use, and more.

After the policy is drafted and a transition date set, employers should work backward from that date to communicate the changes to impacted employees. Those communications should focus on the employees’ perspective and attempt to answer any potential questions employees may have. This will likely include providing employees with a clear timeline, a summary of the new policy, who is impacted, details about what happens to existing PTO and vacation, and who employees can contact with questions.

Employer checklist: Transitioning to unlimited PTO

  • Analyze the company’s employee population to assess whether unlimited PTO aligns with company goals and culture for all or a subset of employees.
  • Draft an unlimited PTO policy.
    • Leverage your broker and consultant partners, like Marsh McLennan Agency Absence, Disability, & Life Practice, who provide transition support and resources to help draft your policy.
  • Assess potential impacts, including:
    • Employees’ existing PTO and vacation balances
    • How unlimited PTO will interact or coordinate with accrued paid sick leave, leave of absence, paid statutory benefits, short-term disability, and any other existing programs related to time away from work
    • Watch for potential compliance requirements and impacts
  • Engage with Legal to review the policy and assess potential impacts that might cause compliance risks or challenges.
  • Develop a transition timeline and plan.
    • Work backward from the proposed effective date of the new Unlimited PTO policy to establish key dates and deliverables.
  • Engage with all impacted groups to understand potential impacts from all perspectives, including payroll, timekeeping, human resources information system (HRIS), human resources, supervisors/managers, benefits, leave of absence administration (i.e., internal team or third-party administration), and any other groups that may be impacted.
    • Identify any training opportunities or resources needed from each group.
  • Develop a robust employee communication plan.
    • Explain why the transition is happening, which will help employees understand and accept the new program. Highlight that unlimited PTO is based on trust and allows employees to balance completing their work and taking time off.
    • Provide details and examples of what will happen to an employee’s existing PTO balance during the transition to unlimited PTO.
    • Emphasize that while the plan may be called ‘unlimited PTO,’ there is still a requirement for supervisor or manager approval.
    • Provide information about where and how to enter PTO requests to emphasize that time must still be entered and tracked.
  • Create supervisor and manager training materials and resources.
    • Consider developing a standard operating procedure (SOP) or guide to assist supervisors and managers with the unlimited PTO process. This should include the approval and denial criteria, focusing on business needs and employee productivity, and to avoid the Supervisor/Manager tracking individual employee usage that might be used as a factor in approval/denial decisions.

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

Transitioning to an unlimited Paid Time Off (PTO) program can provide greater flexibility and enhance employee satisfaction. However, it is essential to plan carefully and communicate clearly to ensure compliance and effectiveness. If you would like assistance with the transition process, reviewing and editing policies, or launching a new unlimited PTO program, please contact Marsh McLennan Agency.

The consequences of failing to accommodate your employees

In the world of workplace accommodations, an employer must track many laws and regulations to ensure that they are compliant and provide employees with applicable protections, rights, and benefits. The primary law that drives these requirements for employers is the Americans with Disabilities Act Amendments Act (ADAAA, or ADA for short).

Women working in office one girl in wheelchair with computer

The ADA requires a covered employer to provide a reasonable accommodation to a qualified individual with a disability, meaning they must make adjustments to the job or work environment to allow the employee to perform their essential functions effectively unless doing so would cause undue hardship for the employer.

Employers must also be aware of the much more recent Pregnant Workers Fairness Act (PWFA), which has some of the same foundations as the ADA. The PWFA’s central requirement is that “covered employers must provide reasonable accommodations to qualified employees, which is anyone with known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an undue hardship.” But, beware of the details – there is some significant variation between the ADA and PWFA, as outlined in a recent Connecting with Compliance post: “Comparing Accommodation Rights: PWFA and ADA.”

What steps can an employer take to ensure compliance?

The first step, which is consistently repeated in blog posts and webinars, is to ensure that all people managers can recognize and respond appropriately when an employee requests accommodation. Of course, there are other points in the accommodations process where an employer has the potential to drop the ball, so every employer should ensure they have a robust accommodations policy and process in place. Failure to recognize these requests and/or failure to follow (and document) a consistent process for providing reasonable accommodations can result in complaints, charges, and lawsuits.

 

The impact of not being compliant

The U.S. Equal Employment Opportunity Commission (EEOC) shared in October 2024 that it filed 110 lawsuits for the year ending September 30, 2024, focused on ensuring that workplaces are fair, safe, and inclusive. The EEOC views litigation (i.e., filing lawsuits against employers) as a strategic tool that can push more employers toward compliance with these requirements.

Of those 110 cases, 48 involved potential violations of the Americans with Disabilities Act (ADA), and another five were related to the Pregnant Workers Fairness Act (PWFA). It appears that the PWFA will remain a focus for the EEOC, so employers must focus on the nuanced requirements when it comes to requests for accommodation from pregnant employees. Employers must also be aware of the broad definition of “pregnancy-related” under the PWFA, as evidenced here when an employer failed to accommodate an employee who requested to recover and grieve following a stillbirth.

With nearly half of those 110 cases focused on ADA violations, employers must also remain diligent regarding all accommodation requests. Failure at any point in the process can lead to charges or litigation. Even when the request is properly recognized, and all sides agree on an accommodation, the employer must ensure that it is implemented and effective.

Employers must establish and adhere to a clear accommodations process to effectively mitigate the risk of EEOC charges related to the ADA and PWFA. By doing so, they not only reduce the likelihood of potential EEOC charges and/or litigation from employees but also foster a more inclusive work environment. This proactive approach demonstrates a commitment to supporting all employees, which is essential for maintaining a positive workplace culture.

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

Understanding and implementing effective accommodation strategies is crucial for ensuring compliance and fostering an inclusive workplace. If you need assistance navigating your accommodation requirements, developing a comprehensive ADA policy, or reviewing your current processes, Marsh McLennan Agency is here to support you in creating an environment that values every employee’s needs and promotes a culture of accessibility within your organization.

Creating a Supportive Paid Emergency Leave Policy: A Guide for Employers

With the recent wildfires and other natural disasters, employers are looking for opportunities to support their impacted employees, including creating a paid emergency leave policy. This type of policy supports employees during critical times and ensures business continuity.

Businesswoman and female lawyer consult having team meeting with client, Law and Legal

Here’s a step-by-step guide to help draft an effective Paid Emergency Leave (PEL) policy.

  1. Identify qualifying events
    Clearly outline the types of emergencies covered by the PEL policy. This could include natural disasters like wildfires, floods, earthquakes, and public health emergencies, such as pandemics. Defining these events and the specific criteria that trigger the availability of PEL helps employees know how and when they can utilize the leave.
  2. Define eligibility criteria
    Clear eligibility criteria helps avoid confusion and ensure that all employees understand their options. Start by specifying which employees are eligible for PEL. This policy should apply to all employees impacted by qualifying events based on their work location or home address but should clearly indicate which employee groups are included or excluded from coverage. This may include full-time or part-time employees or other categorizations. Note that some groups may already have leave of absence (LOA) options to cover these absences, such as those employees covered under a Collective Bargaining Agreement (CBA).
  3. Establish employee notification requirements
    Detail how and when employees should provide notice about their need for PEL. This could be as simple as indicating that notice is required as soon as practicable. Note that exception language should be included, as there may be circumstances when employees are unable to provide advance notice.
  4. Outline documentation requirements
    Specify any documentation that might be required to support the leave request. This might include official evacuation orders, medical certificates, or other relevant documents. Clear documentation requirements help streamline the leave approval process. Again, an exception process is recommended here, allowing employees to provide documentation after the PEL has started or allowing flexibility on the timing of submission. Employers may also consider granting or approving PEL without requiring documentation if the employee is in a covered group.
  5. Determine the duration of PEL
    Specify the maximum duration of the PEL. For instance, the policy might provide a specified number of days or weeks of PEL per year or per emergency/public health emergency (PHE). This ensures that employees have adequate time to address emergencies without worrying about their income or job security. Employers may also consider allowing additional unpaid LOA if an employee exhausts PEL but is unable to return to work.
  6. Ensure job protection
    Some state and/or local regulations may provide LOA with job protection, assuming the leave reason is covered under those state/local LOA. They would likely run concurrently with the employer’s PEL. In situations where no statutory leave is available, job protection is not required. However, it is recommended that job protection is provided during PEL. This means that employees should be able to return to their same or equivalent position after their PEL ends. Job protection is crucial for employee peace of mind in these situations.
  7. Coordination with other leave policies
    Describe how PEL interacts with other leave policies, such as sick leave, PTO/vacation, or any statutory leave. Employees may not need to use sick leave or PTO/vacation if PEL is fully paid. PEL may run concurrently with statutory leave, depending on whether the leave reason is covered under the statutory LOA. In that scenario, the PEL policy should state that PEL is offset (reduced) by the amount of statutory benefit the employee is eligible to receive.
  8. Provide return-to-work guidelines
    Create specific guidelines for employees returning to work after their PEL. This could include any required documentation or notice requirements to help facilitate a smooth transition back to the workplace.

 

After drafting the PEL policy, an employer must ensure that the policy is communicated clearly to all employees, especially those potentially impacted. Using multiple channels (e.g., email, employee handbook, text, or phone notification) is recommended to ensure all employees understand their rights and responsibilities under the policy. By including the above details in the policy and clearly communicating the policy to employees, employers are taking a critical step toward supporting employees during these challenging situations. A clear and robust PEL policy is just one of the ways employers can support impacted employees. Still, it is a critical aspect of helping employees focus on their personal challenges while knowing that their job is secure.

Two professional executives discussing financial accounting papers in office.

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

Effective leave strategies are essential for promoting compliance and fostering an inclusive workplace, especially during challenging times. If you need support, Marsh McLennan Agency is here to help you strengthen your emergency leave programs and create a compassionate PEL policy that supports your employees and nurtures a culture of care within your organization.

Embracing DEIB in leave of absence policies: A path to inclusive workplaces

In a recent DMEC webinar titled “The Intersection of LOA and DEIB – How DEIB Initiatives are Influencing the Leave Landscape,” we discussed how Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives are impacting Leave of Absence (LOA) options at the statutory and employer levels. More importantly, we explored how and why incorporating DEIB principles into leave policies can effectively reflect these values and meet employees’ diverse needs. In this blog, we will highlight some of the key points from that session.

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DEIB and the Regulatory Landscape

DEIB initiatives seem to be driving significant expansion of statutory LOA requirements. Regulatory changes continue to expand benefits and employer obligations. As these programs expand or are created, we see shifts in employee eligibility, covered leave reasons, or enhancements to benefits for those who need specific types of leave. These changes are making programs more inclusive and available to a diverse workforce.

Recent examples:

  • Accrued Paid Sick Leave: Connecticut is expanding the existing sick leave requirements to cover more Connecticut employees. Also, in the November election, Alaska, Missouri, and Nebraska voted to implement new paid sick leave requirements.
  • Special Use Leaves:
    • Beginning January 1, 2025, New York employers will be required to provide paid sick leave specifically for prenatal care, in addition to the existing sick leave requirements.
    • The federal Pregnant Workers Fairness Act (PWFA) expands how and when employers must offer accommodations related to pregnancy. This is not a simple expansion of the ADA but also creates an obligation for employers to provide unpaid leave in certain circumstances.
  • Bereavement: A few states are creating bereavement-specific LOA requirements, but others are adding bereavement as a covered leave reason under existing Paid Family and Medical Leave (PFML) or accrued paid sick leave laws.

DEIB and Employer LOA Policies

Many employers are going beyond statutory requirements to create DEIB-influenced LOA policies. These companies offer comprehensive leave options that address the diverse needs of their employees. For example, a Marsh McLennan Agency Absence Disability and Life client, who co-presented at the DMEC webinar, has focused on expanding their LOA offerings to support a wide range of employee needs better, offering flexible parental leave for all genders, family caregiver support, and a variety of other non-LOA types of support for employees facing catastrophic diagnoses or challenges with aging. These policies support employees and demonstrate a commitment to equity and belonging.

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Strategies and Next Steps

Implementing DEIB-driven LOA policies requires thoughtful planning and execution. Before launching new or expanded LOA programs, employers should ensure that these policies align with organizational goals and take steps to ensure success. This may include:

  • Identify areas of improvement: Assess existing LOA offerings and usage to help determine whether new or expanded LOA options will have the desired impact. Be sure to review statutory requirements that may impact any new programs.
  • Engage employees: Solicit employee feedback to understand their needs and preferences regarding LOA options.
  • Assess costs and impacts: Analyze potential costs of the new program, including how projected usage may impact productivity and staffing.
  • Develop and implement policies: Create policies that outline details for the new LOA program(s) and are essential for educating and training HR and Managers about the programs.
  • Promote awareness: Communicate the availability and benefits of inclusive leave policies to all employees and encourage them to use these new LOA programs when applicable.

How can Marsh McLennan Agency’s Absence, Disability, & Life Practice help?

With 25 years of specialized experience, we recognize that effective LOA strategies are vital for compliance and fostering an inclusive workplace culture. By partnering with us, you can enhance your LOA programs to meet the diverse needs of your workforce, ensuring equitable access to benefits. Reach out today, and let’s discuss how we can work together to reinforce your commitment to DEIB and transform your LOA initiatives into a strategic advantage.