A falling tree in the forest doesn’t make a sound if no one is there to hear it, but it certainly produces sound waves.
Similarly, if an employee’s leave of absence isn’t handled compliantly, consequential waves can come crashing down even if you didn’t see it coming.
Given the evolving and extensive range of legal requirements organizations are responsible for adhering to when administering a leave of absence, it’s more difficult than ever for HR leaders to keep up while new responsibilities continue to be piled on their team’s plate every day.
While some organizations prioritize keeping these functions in-house and rolling the compliance dice, others are choosing to outsource this function to leave management specialists who have the technology, expertise and empathy to support employees and keep you compliant.
Below are some of the compliance risks you need to be aware of surrounding leave of absence management. Having a deeper understanding of these risks can help you decide on a leave of absence management approach that works for both your team’s bandwidth and your legal and compliance team’s satisfaction.
Manager Mishaps Lead to Leave of Absence Lawsuits
Managers throughout your organization have achieved their successes through hard work, expertise, and a passion for their craft (and sometimes nepotism…no judgment).
While managers are relied upon to achieve their business goals, they aren’t leave of absence experts and that can lead to compliance risks if you aren’t careful and diligent.
Manager mishaps can occur when supervisors improperly handle leave requests, share sensitive employee information, behave in a discriminatory manner (even when they don’t intend to), or cross the line communicating when and how they shouldn’t while the employee is on leave.
Poor training or a lack of understanding of leave policies can result in inconsistent application of policy (when two employees get two different experiences), miscommunication (when employees are told something inaccurately), and errors in approving or denying leaves (when employees rights are infringed upon).
This can cause delays, employee dissatisfaction, and legal consequences if managers inadvertently (or intentionally) violate employee rights.
“Managers really do hold the keys to employees’ psychological safety, confidence in their return, and feeling cared for,” says Tilt CEO Jen Henderson in a recent episode of the Modern People Leader Podcast. “All roads lead back to managers.”
To mitigate these potentially costly risks, HR leaders must ensure managers are thoroughly trained on leave policies, maintain open communication channels for leave-related queries, and establish a clear, standardized process for handling leave requests.
Discrimination and Inconsistently Administered Leaves of Absence
Not all inconsistencies in leave support are related to the employee’s manager.
If your team’s processes aren’t standardized, scalable, and up to date with the latest regulations, you could be administering your leaves inconsistently and finding yourself in hot water.
How does this type of discrimination pop up?
Discrimination in leave management arises when leaves are applied inconsistently among employees, potentially favoring some over others based on gender, race, age, or other protected characteristics.
This inconsistency can lead to claims of bias and unequal treatment, resulting in legal disputes and damage to the organization’s reputation.
HR leaders must enforce a standardized, transparent leave policy that ensures all employees are treated equally and fairly. Regular training on unconscious bias, monitoring leave approvals for patterns of discrimination, and establishing a clear appeals process can help mitigate the risk of discrimination and uphold a fair workplace environment.
Violation of State and Federal Leave of Absence Laws
In the world of leave laws the only constant is change.
It’s no secret that violations of state and federal leave laws, such as the Family and Medical Leave Act (FMLA), can have severe consequences for organizations.
Of course, there are so many more regulations an HR leader must consider.
In fact, there are over 400 leave-related laws across the country that HR teams are required to familiarize themselves with, and as leave requests rise and employees continue to disperse across the country, the risks of violation increase right along with it.
These laws vary by jurisdiction and often have specific requirements regarding eligibility, duration, and notice periods. Non-compliance can result in legal penalties, fines, and costly lawsuits.
A fact that most organization’s C-suites are astutely aware of and desperately want to avoid.
“With the complexity of leave I have absolutely seen the tipping point,” adds Jen. “There is no spreadsheet that can figure out a way to track, organize, and accurately respond to the over 400 permutations of leaves of absence. It’s just untenable.”
HR leaders must stay current on relevant laws and ensure company policies are in strict compliance. Additionally, providing clear guidelines and resources to managers and employees can ensure everyone understands their rights and responsibilities.
Discrimination and Inconsistently Administered Leaves of Absence
As if educating managers, consistent administration, and adhering to ever-changing leave laws wasn’t enough, HR teams also have to make sure employees are getting paid what they’re owed while on leave.
Failing to pay employees accurately for their leave entitlements can lead to financial disputes, grievances, and potential lawsuits (noticing a theme?).
This includes miscalculating paid leave, unpaid leave, and any accrued benefits, all of which get significantly more complicated when factoring in state benefits or changes to leave start and stop dates mid-leave plan.
Such errors can damage employee trust and morale, and in some cases, violate wage laws. HR leaders must ensure payroll accuracy, conduct regular audits of their leave data, and ensure accurate tracking of leave balances and entitlements.
Clear communication with employees about their leave pay entitlements and providing accessible resources for leave-related queries are essential to maintaining compliance and fostering a fair, transparent workplace.
Consequences of Inaccurate Leave of Absence Record Keeping
For the record, your leave records matter.
Inaccurate record-keeping of your organization’s leaves can result in significant compliance issues, including disputes over leave balances, mismanagement of entitlements, and potential legal challenges.
Poor documentation and storage of records can also hinder your organization’s ability to provide evidence in the event of an audit or legal inquiry. Establishing secure record-keeping practices and utilizing digital HR systems to track and document leave accurately is difficult to do on your own, but is a must.
Poor record keeping also exposes your organization to privacy violations, which can occur when sensitive employee information, such as medical records or personal details related to leave, is mishandled or improperly disclosed. This can lead to legal ramifications under laws like HIPAA and damage employee trust.
Managing leaves in-house requires regular audits, clear documentation protocols, and training for staff responsible for maintaining records ensuring accuracy and consistency.
It’s not only crucial for compliance but also for maintaining employee trust and organizational transparency.
The Importance of Reinstating Employees After a Leave
Even if you cross every “t” and dot every “lowercase-j” throughout the leave journey, you can still face compliance issues if you don’t have a sound plan for employees to return.
Having a re-onboarding plan is very important, especially for those extended leaves when someone has been out for a long time. Just like you would onboard a new hire, having a plan for welcoming employees coming back from leave is vital for leave of absence efficacy.
Failing to reinstate employees to their original position after a leave of absence is yet another serious compliance risk that can lead to legal disputes and claims of wrongful termination or retaliation.
This practice violates laws such as the FMLA, which entitles employees to return to their job or an equivalent position.
HR leaders must ensure that leave policies clearly outline reinstatement rights and that managers are trained to comply with these regulations…manager education is important once again.
Regular reviews of reinstatement practices, documentation of leave and return processes, and open communication with employees about their rights can help mitigate the risk of non-compliance and maintain a fair, supportive workplace.
Lose the LOA Risks Without Losing Your Mind
Leave of absence management is rife with risk. But it’s becoming increasingly apparent that avoiding all these risks would require a herculean effort from HR leaders and their teams on their own.
So when C-suites evaluate compliance risks in organizational processes, it’s no surprise that they’re taking a big red marker and circling leave of absence management.
The pressure on HR teams to successfully and compliantly manage leaves of absence has never been higher and this is why more organizations are turning to leave management specialists like TIlt to get the job done.
As a fully remote company operating in over 20 states Tilt has saved us so much time in research, compliance, employee conversations, and payroll calculations. Instead of balancing these activities with other responsibilities, we can focus on more strategic and culture-building initiatives!
Tilt’s technology ensures that every leave plan for every leave type for every employee for every state is administered in accordance with the law.
Tilt’s platform comes equipped with cross-functional access so that HR, employee managers, payroll, and the employees themselves are all working together on a fully supported and compliant leave journey.
Access controls ensure that each stakeholder in a leave is only privy to information they need to see and nothing more.
Take a walk around the platform yourself to see how Tilt makes leave compliance easy while supporting employees simply and effectively.
Tilt’s team of in-house leave law experts ensure that our technology is always operating in accordance with the latest leave laws so your team and your C-suite can sleep soundly at night knowing your administering leaves in accordance with the law.
Additionally, Tilt’s team of in-house Leave Success Managers (AKA Empathy Warriors) ensure that employees have all the leave support they need to request a leave, go on their leave journey, and return feeling empathetically supported the entire time.
Relying on leave management specialists like TIlt is your organization’s best bet to maintain compliance and mitigate risks any time during your employees’ most difficult life moments.
Leave of absence compliance isn’t easy to achieve on your own, but it can be with Tilt.
Tilt is leading the charge in all things leave of absence management through easy-to-use tech and human touch. Since 2017, our proprietary platform and Empathy Warriors have been helping customers make leave not suck by eliminating administrative burdens, keeping companies compliant, and providing a truly positive and supportive leave of absence experience for their people.
