Everything You Need to Know: Leave of Absence (LOA)

If you've ever had an employee come to you and ask for extended time away from work, you know how quickly things can get complicated. What are you required to do? Do you have to pay them? Will their job be waiting for them when they return? These are real questions that business owners and HR managers face.

Managing a leave of absence, or LOA, is one of those things that doesn't come up every day, but when it does, you need to know what to do. In this article, we'll break down everything you need to know about leaves of absence, including what they are, what the law says, and how to handle them the right way for your business and your employees.

Let's begin.

Key Takeaways from this Article

• A leave of absence is an approved, extended period away from work that is different from standard paid time off.
• Some leaves are protected by federal and state law, meaning you may be required to grant them regardless of your company size.
• Having a clear, written leave of absence policy in your employee handbook protects both you and your employees.
• Not all leaves of absence are paid, but how you handle compensation depends on your policy and the type of leave.
• Even small businesses with fewer than 50 employees need to understand leave of absence laws, because state laws may still apply to you.

What is a Leave of Absence (LOA)?

A leave of absence is an approved period of time that an employee takes away from work, typically for a personal, medical, or family related reason. It is longer than a standard sick day or vacation and usually requires a formal request and approval process. Think of it as a temporary pause in someone's employment, where their job, or something equivalent, may be held for them while they're away.

Each leave scenario may be different. Some leaves are required by law, and others are offered at the employer's discretion. Some are paid, and many are not. The important thing to understand is that a leave of absence is not the same as quitting or being let go. The employee intends to return, and in many cases, the law requires you to let them.

Leave of Absence (LOA) vs Paid Time Off (PTO)

It's easy to get leave of absence and paid time off mixed up, but they are quite different. Paid time off, or PTO, is something employees accrue over time and use for things like vacation, personal days, or short illnesses. It's flexible, and in most cases, employees don't need to give a detailed reason for using it.

A leave of absence is a different situation entirely. It typically lasts much longer than PTO, involves a formal approval process, and may come with legal protections that standard PTO does not have. In many cases, an employee on a leave of absence has already exhausted their PTO before the LOA even begins.

To sum it up: PTO is what you use when you need a few days off. A leave of absence is what happens when life requires something more.

Types of Leave of Absences

There are two broad categories of leave of absence that every employer should understand.

Mandatory Leave

Mandatory leave is required by federal or state law. This means that as an employer, you are obligated to grant it to eligible employees, regardless of whether you want to or not. Federal laws like the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA) govern many of these situations. Military leave and jury duty are also examples of mandatory leave.

It's worth noting that not every federal law applies to every business. FMLA, for example, only applies to employers with 50 or more employees. However, state laws in Maine and other northeastern states may have their own requirements, such as PFML, that cover smaller businesses, so don't assume you're off the hook just because you have a small team.

Voluntary Leave

Voluntary leave is not required by law. It's something you choose to offer as an employer, and it can be a great tool for attracting and retaining good employees. Examples include extended personal leave, educational leave, or additional parental leave beyond what the law requires.

Because voluntary leave is discretionary, you get to set the rules. Just make sure those rules are written down clearly in your employee handbook so there's no confusion later.

Leave of Absence Policy: What to Include

Every business, no matter the size, should have a written leave of absence policy. This protects you legally and gives your employees a clear understanding of their rights and responsibilities. A solid policy should include the types of leave you offer, who is eligible, how employees should request leave, what documentation may be required, whether the leave is paid or unpaid, and what happens to benefits during the leave. It should also explain the process for returning to work. Review your policy at least every two years to make sure it stays current with changing laws.

Common Types of Leave of Absence

1. Medical Leave

Medical leave is one of the most common reasons employees request time away from work. This type of leave covers situations where an employee cannot work due to a physical or mental health condition. Depending on the severity of the condition and the expected recovery timeline, this can be short-term or long-term. Under the FMLA, eligible employees may take up to 12 weeks of unpaid, job-protected leave for a serious health condition. In Maine, employees can take up to 12 weeks of paid leave for a serious health condition. Mental health conditions, including stress, anxiety, and depression, may also qualify under the ADA and FMLA depending on the circumstances.

2. Parental Leave

Parental leave covers time off related to the birth, adoption, or foster placement of a child. Under FMLA, eligible employees can take up to 12 weeks of unpaid leave for this reason. In Maine, employees get 12 weeks of paid leave for the same reasons. Some employers, especially in states where a state run program is not in place, choose to offer paid parental leave as an added benefit, which can be a powerful tool for recruitment and retention.

3. Personal Leave

Personal leave is a broader category that covers situations not necessarily tied to a medical or family event. This might include things like moving to a new home, dealing with a divorce, pursuing higher education, or simply needing a mental reset after a difficult period. Personal leave is typically voluntary, meaning you are not legally required to offer it. However, having a clear policy around it can prevent awkward conversations and ensure you're treating all employees consistently.

4. Bereavement Leave

Bereavement leave is time off given to an employee following the death of a loved one. Federal law does not require employers to provide bereavement leave, though some states have begun mandating it. Regardless of what the law requires, offering bereavement leave is simply the right thing to do. Most businesses provide anywhere from three to five days for immediate family members, but your policy can be tailored to fit your company's values and culture.

5. Military Leave

Military leave is protected under the Uniformed Services Employment and Reemployment Rights Act, commonly known as USERRA. This federal law protects employees who need to take time away from work for military service, training, or related duties. Under USERRA, employees are entitled to return to their job after military leave and cannot be discriminated against because of their military obligations. This applies to all employers, regardless of size.

6. Jury Duty or Civic Leave

When an employee is called for jury duty, you are generally required to give them time off to fulfill that obligation. Federal law and most state laws, including in Maine, require employers to provide unpaid leave for jury duty. You are not required under federal law to pay employees during jury duty, though some employers choose to do so. Make sure your policy addresses this clearly so employees know what to expect before they ever receive a jury summons.

What Happens to My Benefits While on a Leave of Absence?

This is one of the most common questions employees and employers have when a leave of absence comes up, and the answer depends on the type of leave and your company's policy.

Health Insurance During FMLA Leave

Under FMLA, your employer is required to maintain your group health insurance on the same terms as if you were actively working. That means if your employer covers your entire family on the health plan, that coverage must continue during your FMLA leave. However, you are still responsible for paying your share of the premium, even if you are not receiving a paycheck. If you stop paying your portion, your employer has the right to drop your coverage or pay it on your behalf and recover that cost when you return.

Many employers handle this practically by allowing employees to accumulate what they owe in premiums and then deduct it from paychecks once they return to work. It is worth having a written policy on this so everyone knows what to expect going in.

Non-Health Benefits During Leave

For non-health benefits, such as life insurance or disability coverage, FMLA does not require those to be maintained during leave. However, any benefits that lapse must be reinstated immediately when the employee returns to full-time work. Employers should check with their insurance carriers ahead of time to understand how long employees can remain on non-health benefits during a leave and what is required to reinstate coverage if it lapses.

What if an Employee Doesn't Return After Leave?

One important scenario to understand is what happens if an employee does not return to work after their FMLA leave ends. If an employee fails to come back for at least 30 days after leave concludes, the employer may have the right to recover the cost of health premiums it paid on the employee's behalf during the leave. There are exceptions, including situations where the employee is physically unable to return or is laid off, but this is something both parties should be aware of.

Benefits During Military Leave

For military leave under USERRA, leaves of 31 days or longer may result in the employee transitioning to COBRA continuation coverage rather than remaining on the employer's plan. For military leaves shorter than 31 days, benefits must be maintained as normal.

Benefits for Leaves Outside Federal Protections

For leaves that fall outside of FMLA or USERRA protections, the general rule is that coverage ends at the conclusion of the last month the employee worked full time, at which point COBRA may be offered. Some employers negotiate with their insurance carriers to allow a grace period of a month or two before COBRA kicks in, which can be helpful when an employee is expected to return relatively soon.

The bottom line here is that benefit management during a leave of absence can get complicated quickly. Having clear, written policies and working closely with your insurance carrier and an HR professional will go a long way toward protecting both your business and your employees.

FAQ: Leaves of Absence (LOA)

Who qualifies for a leave of absence?

Eligibility depends on the type of leave. For FMLA, employees must have worked for a covered employer for at least 12 months and logged 1,250 hours in the prior year. Under Maine PFML laws, employees must have worked for at least 120 days to qualify for job protection.  For voluntary leave, eligibility is determined by your own company policy. For military and jury duty leave, all employees are generally eligible regardless of tenure.

How do employees request a leave of absence?

Employees should submit a formal written request as early as possible, especially for planned leaves. The request should include the reason for the leave, the expected start and end dates, and any supporting documentation such as a doctor's note or military orders. Having a standard request form in your employee handbook makes this process much smoother for everyone.

How long can a leave of absence last?

It depends on the type of leave. FMLA and Maine PFML provides up to 12 weeks in a 12 month period, or up to 26 weeks for military caregiver situations. Voluntary leaves can last as long as your policy allows. The key is to define this clearly in your policy so there's no ambiguity.

What is a short term disability leave of absence?

Short term disability is a type of insurance benefit that provides partial income replacement when an employee cannot work due to a non work related illness or injury. It typically covers a limited period, often anywhere from a few weeks to several months. It is separate from FMLA but can run concurrently with it in many cases.

How do you pay employees during a leave of absence?

Most leaves of absence, PFML not included, are unpaid unless the employee has accrued PTO to use or your policy provides for paid leave. Some employers require employees to exhaust their PTO before an unpaid leave begins. If you offer short term disability insurance, that may provide partial income during a medical leave. Payroll should always be notified when an employee goes on leave so compensation is handled correctly.

What happens when a leave of absence ends?

In most cases, the employee returns to their same position or an equivalent one. Under FMLA, this is a legal requirement. For voluntary leaves, reinstatement depends on your policy. Before the employee returns, it's a good idea to check in with them, review any updates to their role, and make sure they have what they need to transition back smoothly.

Can someone take a leave of absence due to stress?

Yes, in many cases they can. Stress, anxiety, and depression may qualify as a serious health condition under the FMLA or as a disability under the ADA, depending on the severity. If an employee comes to you with a stress related leave request, it's best to treat it with the same care and confidentiality as any other medical leave and consult with an HR professional if you're unsure how to proceed.

What is the difference between a leave of absence and FMLA?

FMLA is one specific type of leave of absence. It's a federal law that provides eligible employees with up to 12 weeks of unpaid, job protected leave for qualifying reasons. A leave of absence is the broader term that covers all types of extended time away from work, including but not limited to FMLA. Not all leaves of absence are FMLA leaves, and not all employees or employers qualify for FMLA.

What is the difference between time off and a leave of absence?

Regular time off, such as PTO or sick days, is short in duration and flexible in nature. A leave of absence is a more formal, extended absence that typically requires documentation and approval. Time off is something employees use routinely. A leave of absence is reserved for situations that require more time and come with more structure.

Can a leave of absence be extended?

Sometimes, yes. Extensions are more common in medical situations where recovery takes longer than expected. Whether you grant an extension for a voluntary leave is up to you. For leaves covered by the FMLA or ADA, you may have legal obligations to consider before denying an extension request. When in doubt, consult with legal counsel or an HR professional before making a decision.

What do you tell employees who use too much time off?

First, make sure you have a clear attendance policy so expectations are established from the start. If an employee seems to be taking excessive time off, have a private conversation to understand what's going on. There may be an underlying medical or personal issue that qualifies for a formal leave. If absenteeism continues without a qualifying reason, address it consistently and document everything according to your policy.

Why HR Leaders Should Care About Leaves of Absence

For HR directors, managers, and business owners, leaves of absence are about more than just managing time away from work. They are a reflection of your company culture. When employees feel supported during difficult moments in their lives, they come back more engaged, more loyal, and more productive. On the flip side, mishandling a leave of absence can lead to compliance issues, legal disputes, and damaged trust that's hard to rebuild.

Having a clear leave of absence policy isn't just a legal best practice. It's a signal to your team that you take their wellbeing seriously. And in a tight labor market, that matters.

Written: April 2026

Written by: Jon Portanova