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.

December 2024 Statutory Update

Click HERE to view and download the full Update

In this Update:

Paid Family and Medical Leave Updates

Colorado Family and Medical Leave Insurance (CO FAMLI) – Updated Regulations

Maine Paid Family and Medical Leave (ME PFML)

Reminders

Updated Resources

Final Regulations

Minnesota Paid Leave (ME PL) – Updated Resources, Proposed Regulations

 

Accrued Paid Leave Updates

Cook County, IL Paid Leave – Updated Regulations

Voters in Three States Approve Accrued Paid Leave for 2025

May 1: Missouri Earned Paid Sick Time

July 1: Alaska Paid Sick Leave

October 1: Nebraska Healthy Families and Workplaces Act

 

Other News

New York Paid Personal Prenatal Leave – Guidance

 

2025 Paid Family and Medical Leave (PFML) Rates, Benefits and Required Notices

From ballot to benefit: Understanding the new paid sick leave laws in three states

Three states included accrued paid sick leave proposals on the 2024 ballot: Alaska, Missouri, and Nebraska. Voters in each of those states approved these sick leave initiatives, meaning that employees who work in each of those states will be entitled to paid sick leave in the near future, barring any unforeseen challenges in the regulatory process. The below outlines the next steps for each of these sick leave initiatives and provides details on what that means for employers and employees in each location. And remember, these are subject to change.

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Alaska: Paid Sick Time

Voters in Alaska approved Ballot Measure No. 1, under which the Alaska Department of Labor and Workforce Development will draft and implement regulations to provide employers with details as they prepare for sick leave accruals, which begin July 1, 2025.

The proposal appears to cover all employers regardless of size but does differentiate between employers with 15 or more employees and those with fewer than 15 employees.

  • For those with 15 or more employees, employees shall accrue one hour of sick leave for every 30 hours worked, up to a maximum of 56 hours.
  • Those employers with fewer than 15 employees accrue at the same rate, but the maximum balance is 40 hours.

Other than a few exceptions, which appear similar to those of existing sick leave laws in different states and locations, all employees are entitled to sick leave. Similarly, the covered leave reasons appear similar to other sick leave regulations, allowing leave for the employee’s own illness, injury, or health condition to care for a family member and safe leave.

The regulations may provide more guidance, but the proposed law does not mention frontloading. The law does appear to require the carryover of unused hours. Still, it caps the overall balance, and this also caps annual usage at 56 hours (or 40 hours for employers with fewer than 15 employees).

 

Missouri: Earned Paid Sick Time

After this initial approval by Missouri voters, the Missouri Department of Labor and Industrial Relations will be responsible for drafting regulations. The proposal, titled Proposition A, lists a proposed effective date of May 1, 2025.

The proposed law broadly defines employers but excludes public employers. Similarly, a covered employee is broadly defined, with a few common exceptions included in other sick leave mandates. Those eligible employees will accrue one hour of sick leave for every 30 hours worked, and there is currently no cap or limit on accrual.

Covered leave reasons in Missouri appear similar to Alaska: employee’s own illness, injury, or health condition; to care for a family member; and safe leave. However, Missouri’s proposed law also includes the closure of an employee’s business due to a public health emergency, the closure of the employee’s child’s school or daycare for the same reason, and the need to quarantine.

The Missouri law also allows for frontloading of sick leave hours but does not include details about how frontloading will impact the obligation to allow carryover of up to 80 hours of accrued but unused sick leave. Despite the higher balances and carryover, employers can limit usage to 56 hours or 40 hours for employers with fewer than 15 employees.

 

Nebraska: Healthy Families and Workplaces Act

Nebraskans voted to pass Measure 436, which propels the Nebraska Department of Labor to draft regulations, which will likely require public hearings and other steps before finalization. Employers will need to monitor the status to prepare for sick leave accruals scheduled to begin on October 1, 2025.

All private Nebraska employers are covered under the proposed law, which also broadly defines employees as anyone who works 80 or more hours within the state per calendar year. All eligible employees will accrue one hour of sick leave for every 30 hours worked, up to the maximum of 56 hours or 40 hours for employees of a small business, defined as any business with fewer than 20 full-time, part-time, and temporary employees.

The proposed law covers leave for absences due to the employee’s own illness, injury, or health condition; to care for a family member; and the closure of an employee’s business due to a public health emergency, closure of the employee’s child’s school or daycare for the same reason, and the need to quarantine.

Like Missouri, Nebraska will allow employers to frontload sick leave hours but does not include details about how frontloading will impact the obligation to allow carryover of accrued but unused sick leave. There is no mention of a limit on carryover or a maximum balance, but employers can limit usage to align with the maximum annual accruals.

Portrait of two business colleagues, looking at something online

Next steps for employers?

  • Continue to monitor the Connecting with Compliance blog for updates on these proposed regulations, as well as all other sick leave law updates.
  • For employers with employees in Alaska, Missouri, and Nebraska, review existing sick leave policies to ensure compliance with these new law(s).
  • Train supervisors and/or managers to be familiar with these laws and update any training materials (or other process documents) to align with them.

Each of these initiatives represents a significant step toward employees having access to paid sick leave across the United States, with three more states being added to the 40+ locations that already require some form of paid sick leave. While voters have approved these initiatives, there will likely be many changes to each proposed law’s details in the next regulatory processes.

 

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

Marsh McLennan Agency’s Absence, Disability, & Life Practice has developed an innovative paid sick leave tool designed to assess your workforce’s dynamics, providing you with valuable insights into its effects on your organization. We are committed to incorporating these three new states as soon as the proposed regulations are released. If you are interested in this analysis, please let us know, and your Marsh McLennan Agency partner will reach out to you.