The Top Leave Compliance Pitfalls HR Teams Should Avoid

Managing employee leave is one of the toughest parts of HR. Whether it’s keeping up with ever-changing laws or handling tricky employee situations, leave compliance is high-stakes. A small mistake can lead to big problems—legal risk, unhappy employees, and even damage to your company’s reputation.

As we step into 2025, let’s look at the top leave management compliance pitfalls HR teams should watch out for—and how you can tackle them head-on.

1. Failing to Stay Updated on Leave Laws

The Pitfall: Keeping up with leave regulations at the federal, state, and local levels can feel like a moving target. Changes to state family leave programs can easily slip through the cracks, putting your organization at risk of non-compliance.

How to Avoid It:

• Subscribe to reliable HR and legal news sources for updates

• Invest in a leave management software solution that captures these updates

• Partner with legal counsel to periodically audit your policies

2. Misclassifying Employees

The Pitfall: Misclassifying employees as exempt, non-exempt, or independent contractors can result in denying eligible employees the leave benefits they’re entitled to.

How to Avoid It:

• Regularly review employee classifications to ensure accuracy

• Implement clear documentation processes to track and record employee status

• Train managers on classification guidelines and leave eligibility rules

3. Ignoring Part-Time and Flexible Workers

The Pitfall: Many HR teams overlook the leave entitlements of part-time employees and those working non-traditional work schedules, or incorrectly scale their applicable entitlements.

How to Avoid It:

• Extend internal leave policies to part-time and irregular workers when appropriate.

• Conduct training to educate HR teams on non-traditional workforce rules.

• Implement a leave management system that calculates prorated benefits automatically.

4. Inconsistent Application of Policies

The Pitfall: Applying leave policies inconsistently—whether intentionally or unintentionally—can lead to discrimination claims and erode employee trust.

How to Avoid It:

• Train HR and managers on leave policies to ensure fair application

• Document all leave decisions thoroughly to create a paper trail

• Centralize leave management processes with tools that reduce human error

5. Missing Key Deadlines

The Pitfall: Failing to meet deadlines for notifying employees, responding to requests, or filing necessary paperwork can result in penalties and legal complications.

How to Avoid It:

• Develop a compliance calendar to track key timelines for every leave request

• Create a centralized tracker with multiple admins to create backup coverage and avoid oversight

• Leverage automated leave management tools to send reminders for important deadlines and tasks

6. Overlooking Intermittent Leave

The Pitfall: Managing intermittent leave is notoriously tricky. Errors in tracking time off or denying requests without valid reasons can lead to compliance issues.

How to Avoid It:

• Train HR teams on handling intermittent leave requests under FMLA and state laws

• Communicate clearly with employees about their responsibilities for reporting time off

• Leverage leave management software to accurately track intermittent leave hours across entitlements

7. Forgetting to Account for State-Specific Laws

The Pitfall: Many states, such as California, New York, and Massachusetts, have leave laws that go beyond federal requirements. Ignoring these laws can lead to non-compliance.

How to Avoid It:

• Audit your policies regularly to align with state-specific requirements

• Work with legal experts to verify compliance across states

• Ensure your leave management system accounts for all states that you operate within

8. Neglecting Employee Communication

The Pitfall: Poor communication about leave policies, or failure to communicate to an employee about their rights can lead to confusion, disputes, and complaints.

How to Avoid It:

• Create accessible, easy-to-understand leave policies for employees

• Ensure you have the proper notices posted and sent to employees as they request leave

• Use leave management technology to provide employees information about all leave programs available

9. Failing to Document Leave Properly

The Pitfall: Inadequate documentation can leave your organization vulnerable in case of disputes or audits.

How to Avoid It:

• Implement a standardized process for documenting all leave requests, approvals, and communications

• Use digital tools to store records securely and access them easily during audits

• Ensure documentation complies with relevant privacy laws like HIPAA

10. Relying Too Heavily on Manual Processes

The Pitfall: Manual processes are prone to errors, delays, and inefficiencies, making compliance more challenging.

How to Avoid It:

• Invest in leave management software that automates workflows and ensures compliance

• Use technology to track changes in laws, deadlines, and leave usage

• Regularly evaluate and update your tools to meet evolving needs

Navigating leave compliance can be tricky, but a robust leave management tool can significantly reduce your risk. Avoiding hefty fines—sometimes up to $75K per claim—easily offsets the investment in a reliable platform. Start 2025 with peace of mind and one less worry on your plate.