Small and mid-sized businesses are often at a disadvantage when it comes to benefits – like leave policies - they can offer to attract and retain workers. For example, small businesses with fewer than 50 employees are not subject to federal family leave requirements like the Family and Medical Leave Act (FMLA).
While some states have their own family leave laws, fewer than 20 states offer this protection. This leaves many small business employees without access to FMLA, making it difficult for workers to request time off for personal or family health issues, the birth of a child, or their own care if the business does not have a dedicated leave policy.
Flexible, Affordable Leave Solutions for Small Businesses
Fortunately, there are cost-effective solutions available for small and mid-sized businesses.
While offering paid or unpaid leave can strain limited budgets, there are creative ways to provide flexibility for employees. Options like schedule adjustments, shared PTO banks, or donation systems can help support employees while managing the company’s resources.
As employees increasingly prioritize work-life balance, especially around self-care and family needs, we see more employees asking about leave early in the recruitment process. The employer and its Human Resources team should cultivate a culture that does not repress the need for leave and have policies in place for both paid and unpaid leave.
Transparency is Key to Building Trust
To keep morale high, employers should try to be as transparent as possible about how employee leave affects the business—whether it's scheduling, profitability, or customer service. Another key consideration is fairness. Leadership teams should avoid giving themselves leave perks that aren’t available to all employees, as this can create resentment.
The Role of Employer Support in Leave Requests
Employers should step up as supportive guides, helping employees understand the options available and coordinating with HR to ensure compliance with applicable laws and industry best practices.
Employers should pay attention to employee morale and create a culture where employees feel comfortable asking about common benefits such as leave. There is no harm in an employee having a respectful conversation about the possibility of paid or unpaid leave, provided the conversation is reasonable. Often, employee requests lead to an employer revisiting their benefits and other policies which could have a positive impact across the company.
The employer is in a stronger position and should help guide the employee. Often, employees are intimidated when asking their managers or HR so help from the employer is beneficial and necessary. Additionally, when an employee requests leave, it is often during a stressful time. Employers should research applicable laws and industry best practices and have policies in place if they expect an employee to find someone to cover their shift.
Wellness Resources for Employees
Even without large-scale platforms like SharePoint, small businesses can still promote wellness through simple initiatives such as hanging up posters, sending emails, or having wellness meetings.
Encouraging Employee Research on Leave Policies
While employers should guide employees through the process, employees are encouraged to do their own research. State departments of labor (DOL) often provide clear FAQs and online resources.
Legal Compliance and Employer Responsibility
If an employer is in a state that requires paid leave or other leave, employers must share this information with employees by posting it in common workspaces or making it available in the employee handbook so employees are aware of their eligible leave time.
When possible, employers should remind employees that paid leave via state laws or short-term disability (STD) are often at a reduced rate in pay or for a limited time. Employees should review all STD, paid and unpaid leaves and coordinate the benefits as best as possible.
The employer should provide a general overview of the coordination of benefits. It helps employees and if they do not feel supported, they may find another employer or not return from their leave.
It is not exactly popular for an employer to expect employees to save paid time for a ‘rainy day.’ If you’re frontloading sick leave or PTO, make sure you have consistent policies in place to handle any negative balances or costs of writing off those losses.
In summary, employees should feel confident asking for leave when they need it. It’s all about building a workplace culture where leave isn’t discouraged and being transparent about it. Employers need to keep an eye on morale and metrics like turnover and retention to see how their team really feels about the benefits and work environment.
Smaller businesses often don’t know all the leave rules, so it’s a good idea for employers to reach out to their HR team or their Engage PEO HR consultant to discuss options and requirements.