Employee Leave: What Are Employers Required to Provide?

This guide outlines the different types of employee leave to help you understand the difference between what you must and what you may choose to provide. An employee handbook that outlines your policies can help small business owners reduce confusion and avoid possible legal action. For help creating a paid leave policy tailored to your unique business, consider speaking with a local employment attorney experienced in working with small businesses.

Federally Mandated Leave

While many leave policies are optional, federal law requires employers to provide unpaid, job-protected leave for certain civic duties and qualifying personal situations. Let’s take a closer look at some of the most important factors and laws.

The Family and Medical Leave Act (FMLA)

Employers must provide unpaid leave to employees covered by the federal Family and Medical Leave Act (FMLA). Qualified employees may take up to 12 weeks of unpaid leave in any 12-month period to:

• Care for an infant or adopted child
• Care for a family member with a serious injury or illness
• Recover from the worker’s own serious mental or physical condition

The FMLA applies to public agencies, public and private elementary and secondary schools, and private-sector employers who employ 50 or more employees. Workers can take unpaid time in increments or as an adjunct to other medical leave, paid time off, or workers’ comp.

Military Leave (USERRA)

Employers do not have to pay employees when they are on military leave. However, they must provide unpaid, job-protected leave. An employee may be able to use their paid time off during their leave.

The Uniformed Services Employment and Reemployment Relief Act of 1994 (USERRA) prohibits employers from discriminating against employees who serve in the military. USERRA requires employers to reemploy a worker on deployment (whether voluntary or involuntary) when the worker returns from service. Deployment includes National Guard service, active reserve duty, and training.

An employer is not required to reinstate an employee if it would create an undue hardship. For instance, a business that has undergone reorganization or downsizing since the employee left might not be required to hold the position. Part-time employees or workers employed only briefly before deployment do not have a reasonable expectation of reinstatement.

Jury Duty and Voting Leave

No federal law mandates paid time off for voting or jury duty, but most states require unpaid time off for voting if employees can show they can’t vote outside working hours. A few go a step further, requiring employers to provide paid time off for voting.

Employers must allow employees to serve on a jury. Terminating an employee for jury service is a misdemeanor offense in some states. Employers are not required to pay employees their wages during jury duty.

State and Local Mandated Leave

In addition to federal laws, many states and cities have their own leave requirements that employers must follow.

Paid Sick Leave

No federal paid sick leave laws currently exist, but employers must provide paid sick leave if state law requires it. As of 2026, 22 states and the District of Columbia have laws requiring at least some employers to provide paid sick time. Twenty-two cities and counties (some within those states) have separate laws.

If providing sick leave, an employer should:

• Describe sick leave requirements in the employee handbook: You can request a doctor’s note from the employee but must include this term in the handbook
• Decide whether to include accrued pay when an employee leaves employment: Check your state laws and confirm if you must include accrued sick pay with other wages
• Have a carry-over policy: As with your vacation policy, your sick leave policy should state whether it carries over from year to year or is a “use it or lose it” policy

Companies providing sick leave should clearly explain all facets of the coverage in the employee handbook.

State Family and Medical Leave

Beyond federal FMLA, states may provide additional benefits through their own medical and family leave laws. Be sure to check the laws in your specific jurisdiction.

Company-Policy Leave (Optional Benefits)

Many employers offer paid leave as a benefit to attract and retain talent, even when not legally required. Define these policies clearly in your employee handbook.

Paid Vacation

Employers have no legal obligation to provide paid vacation days. Many companies offer paid vacation time as a hiring incentive and perk, even though it’s not required. Most that do so utilize accrued paid time off, with employees earning a certain number of hours based on time worked in a PTO bank.

Whatever method you use to provide vacation time, keep a few things in mind:

• Consistent accrual standards for each employee: The accrual rate should be the same for all workers. This is regardless of classification or status.
• Determine your carry-over policy: Some employers allow vacation hours to carry over to the next year. Others have a “use it or lose it” policy in which employees must use accrued time each calendar year. Whatever method you use, state it clearly in your company policy or handbook.
• Know your state law: States may not mandate vacation benefits but still regulate how employers offer them. State laws may cover time accrual, employee classification, and when workers can take time off.

In some states, vacation pay is considered wages. You must deduct taxes from vacation pay accordingly. Depending on the employer’s plan, vacation time may accumulate daily or weekly. Depending on your state law, employers must pay unused vacation time to the employee upon termination of employment.

Paid Time Off (PTO)

Some businesses have combined sick leave and vacation time into a system called paid time off (PTO). Employees receive a certain number of days for vacation, sick leave, and personal time. For example, if a company grants 10 vacation days, five sick days, and two personal days, the employee would have 17 days of paid time off.

Companies use this method to prevent sick-time abuse. It gives employees the flexibility to take time off when they want or need to. Employers are not required to pay out accrued, unused paid sick leave or general PTO upon termination unless state law or express company PTO policy specifically mandates it.

Get Legal Help With Your Leave Questions

Paid leave is a good way to attract new employees and retain existing workers. If you offer sick leave or paid vacation, you should ensure you comply with state and local laws. Contact an employment law attorney in your area for legal advice about your leave policies.