Employers are adding more types of employee leave, but many remain uncertain about whether they can administer them accurately and comply with changing legal requirements.
Only 26% of US employers say they are very confident in their ability to manage leave accurately and in line with the law, according to NFP's 2027 US Leave Management Report. The findings highlight the growing administrative demands facing HR teams as state leave requirements expand and employee accommodation needs receive more attention.
The survey, conducted with research firm Empatix, included 1,004 US employers. Smaller organisations made up a substantial share of respondents, with 72% employing fewer than 500 people. The findings measure employers' reported confidence, rather than independently verified compliance.
The report also points to the time required to manage leave. Among employers handling leave internally without dedicated software, 46% said they spend three to five hours on each leave request, compared with 37% the previous year. Even among employers using leave-management software, nearly half reported spending at least three hours per request.
For HR teams, leave administration can involve coordinating federal protections under the Family and Medical Leave Act (FMLA), state paid family and medical leave programmes, short-term disability benefits and other state or local requirements.
“Leave is not just an administrative obligation,” said Maria Trapenasso, senior vice president and national practice leader for talent solutions at NFP. She described leave management as an important part of employee experience, attraction and retention.
Menopause Legislation Creates New Challenges for HR
Awareness of emerging menopause-related workplace protections remains limited. According to NFP, 54% of surveyed employers were unaware of emerging menopause legislation.
Rhode Island introduced workplace protections for menopause in 2025, followed by a Philadelphia ordinance later that year. Illinois also enacted the Menopause Equity and Care Act in August 2026, with employment-related provisions scheduled to take effect on January 1, 2027, according to the legislation's reported timeline.
These developments add to the need for HR teams to understand how existing discrimination and accommodation procedures apply to menopause-related symptoms and other health conditions. Employers should verify the specific requirements and effective dates in every jurisdiction where they operate.
Despite growing legislative attention, relatively few employers have formal menopause accommodations in place. NFP found that just 7% of surveyed employers currently offered them, while 34% said they were open to doing so within five years.
For HR, the practical task is to ensure that employees know how to request support and that managers understand how to handle requests consistently, confidentially and in accordance with applicable law.
Bereavement Leave Is Expanding Beyond Traditional Policies
Leave policies are also evolving in response to employee needs, even where new legislation is not driving the change.
Among employers that offer bereavement leave, 35% said their policies covered miscarriage or unsuccessful in vitro fertilisation (IVF), up from 28% when NFP first measured the practice in 2023.
This illustrates how employers are reconsidering the circumstances in which employees may need time away from work. HR teams should clearly document eligibility, available leave, approval processes and how managers should respond to sensitive situations.
Why Leave Administration Needs Greater Attention
The report found that 69% of employers manage leave internally, while approximately three in 10 outsource leave administration entirely. Cost remains a barrier to external support: among employers that had considered outsourcing, 66% identified cost as the main obstacle.
However, managing leave internally does not remove the need for reliable processes. Overlapping federal, state and local rules can make it difficult for HR teams to determine eligibility, calculate entitlements, track deadlines and maintain consistent records.
Under the FMLA, qualifying violations can expose employers to remedies that include lost wages and benefits, liquidated damages in applicable cases, attorney's fees and equitable relief. The potential consequences make accurate administration important beyond simply reducing HR workload.
What HR Teams Should Do Next
Employers can take several practical steps to improve leave administration:
- Audit existing policies: Review every leave type offered and identify the federal, state and local requirements that apply.
- Assign clear ownership: Establish who is responsible for eligibility decisions, documentation, deadlines, employee communications and compliance checks.
- Review accommodation procedures: Ensure managers know how to escalate requests involving menopause-related symptoms and other health conditions.
- Assess administrative systems: Determine whether existing tools can track overlapping leave entitlements, required notices and relevant deadlines accurately.
- Train managers: Provide guidance on handling sensitive requests consistently and protecting employee confidentiality.
- Evaluate outsourcing carefully: Compare the cost of external administration with the organisation's internal capacity, complexity and compliance needs.
Employers should also review policies regularly as laws change, rather than relying on an annual check alone.
As leave options expand, the challenge for HR is not simply to offer more benefits. It is to ensure employees can access the leave available to them while the organisation administers each programme accurately and consistently.
The findings highlight an opportunity for employers to strengthen leave-management processes as requirements and employee needs continue to evolve. Clear policies, defined responsibilities and dependable tracking systems can help HR teams support employees while reducing avoidable administrative and compliance risks.
Research source: NFP's announcement of the 2027 US Leave Management Report
