Common Leave Management Errors to Avoid

10/28/2025

Even well-run HR teams can trip over the complexities of leave management. Between FMLA, ADA, PWFA, and Workers’ Compensation, it’s easy to miss deadlines, mislabel leave, or mishandle medical documentation. These mistakes can lead to compliance audits, legal risk, and employee frustration. In this guide, we’ll walk through the most common leave management errors to avoid — and how to fix them before they cost you time, money, or trust.

Why Leave Management Mistakes Are So Common

Managing employee leave is one of the most legally complex functions in HR. The primary reason for error is the difficult overlap between the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), the Pregnant Workers Fairness Act (PWFA), and state-level Workers' Compensation laws. Each has its own eligibility rules, definitions, and protections, and they often apply to the same employee situation simultaneously.

A "serious health condition" under the FMLA might also be a "disability" under the ADA, creating dual obligations. Inconsistent policy enforcement, poor documentation, and a simple lack of ongoing training on evolving regulations compound these challenges, creating a perfect storm for compliance failures.

Error #1 — Failing to Designate FMLA Leave Properly

One of the most frequent FMLA errors is failing to recognize and designate leave correctly from the start. When an employee is out for a reason that likely qualifies under FMLA (e.g., surgery, a new child, caring for a sick parent), the employer has an obligation to provide them with notice of their eligibility and rights.

Ignoring this duty or improperly designating the leave retroactively can invalidate the entire leave period from the company's perspective, meaning the employee may still have their full 12 weeks of FMLA available. Another common slip-up is forgetting to run FMLA concurrently when an employee is out on Workers' Compensation for a qualifying on-the-job injury.

Best practice: As soon as you have enough information to know an absence may be FMLA-qualifying, provide the employee with the required FMLA notices within five business days. Always provide a formal, written designation notice that clearly states how much leave will be counted against their FMLA entitlement.

Error #2 — Misunderstanding the Interaction Between FMLA, ADA, and PWFA

Many HR professionals manage leave laws in silos, but they rarely operate that way. An employee with a back injury might be eligible for FMLA leave, protected from discrimination under the ADA, and entitled to light duty through Workers' Comp—all at the same time. The key is to apply the law that provides the greatest benefit to the employee.

For example, the FMLA allows reinstatement to an equivalent position, but the ADA and PWFA generally require reinstatement to the original position. In an overlapping case, you must follow the stricter ADA/PWFA standard. Similarly, FMLA provides 12 weeks of leave, but the ADA may require additional leave as a reasonable accommodation.

Best practice: When a condition qualifies under multiple laws, analyze your obligations under each. Always document the "interactive process" required by the ADA and PWFA, where you collaboratively discuss potential accommodations with the employee. This process is separate from your FMLA obligations.

Error #3 — Mishandling Medical Information

The rules around employee medical information are strict and unforgiving. A common mistake is requesting too much information, such as asking for a full medical history when only a certification for a specific condition is needed. Another critical error is violating the Genetic Information Nondiscrimination Act (GINA) by inadvertently receiving genetic information (like family medical history).

Perhaps the most damaging mistake is when managers or supervisors are given access to an employee's diagnosis. This information should be firewalled within HR. All medical records must be stored in secure files, completely separate from general personnel files.

Best practice: Ensure every request for medical certification includes the required GINA "safe harbor" disclaimer. This language instructs the healthcare provider not to share genetic information. Train managers that they are only entitled to know about an employee's functional limitations and work restrictions, not their medical diagnosis.

Error #4 — Forcing Leave Instead of Offering Accommodation

Under the ADA and PWFA, employers have an obligation to provide reasonable accommodations that allow an employee to perform their job. A frequent error is to bypass this interactive process and place an employee on leave as a first resort. For example, if a pregnant worker needs to avoid heavy lifting, the employer must first explore accommodations like reassigning those tasks before defaulting to leave.

While leave is a right an employee can choose under FMLA, accommodation is a right they can request under the ADA and PWFA. You cannot force an employee to take leave if another reasonable accommodation exists that would enable them to keep working, unless that accommodation would cause an "undue hardship" for the business. Undue hardship is a high legal bar that requires objective proof of significant difficulty or expense.

Best practice: Always engage in the interactive process first. Document your exploration of accommodations like modified schedules, light-duty assignments, or equipment changes before concluding that leave is the only option.

Error #5 — Ignoring Intermittent Leave Management

Intermittent FMLA leave, taken in separate blocks of time for a single qualifying reason, is a major source of administrative headaches and errors. Common mistakes include miscalculating the leave taken by failing to track it in the smallest increment your payroll system allows (e.g., 15-minute increments).

Another error is failing to manage the operational impact. If an employee's need for intermittent leave is foreseeable and is disruptive to operations, you may have the right to temporarily transfer them to an alternative position with equivalent pay and benefits that better accommodates the leave schedule.

Best practice: Use a reliable system to track intermittent leave usage down to the partial hour. Have clear communication protocols that require employees to specify when an absence is for their FMLA-certified reason. Consider leave management software to automate tracking and reduce manual errors.

Error #6 — Failing to Maintain Pay and Benefits

The FMLA requires employers to maintain group health insurance coverage for an employee on leave under the same terms and conditions as if they had not taken leave. A critical error is to terminate coverage or incorrectly ask the employee to pay the full COBRA premium.

When leave runs concurrently with Workers' Compensation, confusion often arises over how the employee's share of the premium is paid. You must coordinate this with the employee. Miscommunication about how short-term disability payments integrate with PTO or company-paid leave also leads to payroll errors and frustrated employees.

Best practice: Before the leave begins, provide the employee with a clear, written explanation of how their benefits will be maintained and how they should submit their premium payments. Audit your benefit continuation processes to ensure they are not discriminatory.

Error #7 — Mishandling Return-to-Work and Reinstatement

When an employee is ready to return, several mistakes can occur. The most common is violating their reinstatement rights. As noted, if both FMLA and ADA apply, you must reinstate them to their original job, not just an equivalent one. Reassigning an employee to a different department or shift without their consent is a major compliance risk.

Another illegal practice is enforcing a "100% healed" policy, which requires an employee to be fully free of all medical restrictions before returning. The ADA explicitly prohibits this, as it ignores the employer's duty to provide reasonable accommodations.

Best practice: Have a clear return-to-work process that includes obtaining a fitness-for-duty certification outlining the employee's functional abilities. Engage in the interactive process to address any restrictions and document the accommodation plan.

Error #8 — Poor Documentation and Recordkeeping

In a compliance audit or lawsuit, your documentation is your defense. If you didn't document it, it didn't happen. Common errors include missing FMLA designation notices, incomplete medical certifications, or a lack of clear logs tracking leave usage.

Another mistake is storing all leave-related paperwork in the main personnel file. As mentioned, medical records must be kept separate and confidential. Furthermore, the FMLA requires employers to retain all relevant records for at least three years. Failing to do so is a direct violation.

Best practice: Create a defensible audit trail for every leave case. This includes a checklist of all required notices, copies of all correspondence, a log of all leave time taken, and notes from every interactive process meeting.

Error #9 — Lack of HR and Supervisor Training

Many leave management mistakes begin with front-line supervisors who are not trained to recognize a leave request. An employee saying, "I need to take off next month for surgery," is a verbal FMLA request that triggers the employer's obligations. If the supervisor fails to escalate this to HR, the compliance clock may start ticking without the company even knowing it.

This lack of training can lead to supervisors making prohibited medical inquiries or making comments that could be construed as interference or retaliation.

Best practice: Conduct annual compliance training for all managers. Provide them with simple scripts and FAQs on what to do when an employee mentions a health issue or a need for time off. This training should emphasize their role: show support, ensure work is covered, and escalate to HR immediately.

Error #10 — Neglecting Policy Updates

Leave laws are constantly changing. The introduction of the PWFA and the proliferation of state-level paid leave laws mean that an HR handbook from just a few years ago is likely out of compliance. Using outdated policies can lead to denying employees rights they are legally entitled to.

Common policy omissions include failing to mention PWFA accommodations, having unclear language about benefits continuation, or not accounting for the specific rules of paid leave programs in states where you operate.

Best practice: Create an annual review checklist for your employee handbook and all leave-related policies. The review should specifically check for alignment with any new federal, state, or local laws enacted in the past year.

How to Prevent Leave Management Mistakes

Proactive prevention is far less costly than reactive correction. A three-pronged approach can help you avoid these common errors.

Audit Your Leave Processes Annually

Conduct an internal audit of your leave management workflow. Pull a sample of recent leave cases and check for complete documentation. Compare your FMLA, ADA, and PWFA processes to ensure they are integrated, and verify that all your forms, letters, and templates are up-to-date and include necessary disclaimers like the GINA safe harbor.

Automate Tracking and Notifications

Manual leave tracking is prone to error. Implementing leave management software can automate notifications, ensure accurate calculation of intermittent leave, and create a centralized, auditable record of all leave activity. These systems can track overlapping leave laws simultaneously, reducing the risk of miscalculation.

Train Staff and Review Policies Regularly

Make leave management a core component of your annual HR and manager training. Keep your team informed about significant legal updates and best practices. Use this time to review and update communication templates to ensure they remain consistent, compliant, and clear.

Key Takeaways

Even small leave management mistakes can trigger lawsuits, penalties, or employee distrust. The financial and cultural costs of getting it wrong are simply too high to ignore. By tightening your documentation, aligning your FMLA/ADA/PWFA coordination, and keeping your policies and training current, you will protect both your organization and your most valuable asset—your workforce. Avoid these top compliance pitfalls in your next audit.