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.

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.

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.