Decoding State Leave Laws

Navigating state leave laws can feel as though you are moving through a constantly shifting maze. For business owners, HR professionals, and benefits managers, keeping up with evolving leave requirements isn’t just a compliance issue; it’s a critical part of supporting employees and running a thriving business.

But how do you juggle all the moving pieces, especially when your workforce spans multiple states?

Simple overview of state leave laws

Many states have laws that dictate the types of paid or unpaid leave employers are required to provide their employees. These laws can encompass rules regarding sick leave, family leave, parental leave, and emergency leave, among others.

With the absence of a comprehensive federal paid leave policy in the United States, states have stepped in to create their own rules, resulting in significant variations from one state to another.

For businesses, this can be a logistical headache, particularly if you operate in multiple states. Add to that the constant changes in legislation—from states repealing laws to others introducing new ones—it becomes clear why so many organizations struggle to stay on top of it all. How do you juggle all the moving pieces?

Why state leave laws matter

• For employees: They provide crucial time off for illness, family care, or emergencies while ensuring job protection.
• For employers: Compliance with these laws avoids employee complaints, lawsuits and penalties, improves employee trust, and enhances overall workplace culture.

But what if the rules in your state are drastically different from others? For example, Colorado, Missouri, Kansas, and Texas provide a range of requirements, as highlighted below.

Colorado has more than one leave law

Colorado Paid Family and Medical Leave (FAMLI): Most Colorado employers are required to contribute a certain amount of each employee’s paycheck to a state fund that is then used to pay eligible employees who take leave for a qualifying reason. This type of leave can be used for the same reasons as the federal Family and Medical Leave Act (FMLA). Eligible employees must file a claim with the state to receive benefits.

Healthy Families and Workplaces Act (HFWA): This law requires employers to grant Colorado employees a certain amount of paid leave per year to be used for their own or family member’s illness and other reasons. Leave is generally accrued at a rate of one hour of leave for every 30 hours worked.

Employers can satisfy the HFWA if their PTO policy meets its minimum requirements, with prior notice to employees.

It is possible for Colorado employees to qualify for both types of leave at the same time. How these leave requirements interact with employer leave and disability policies is extremely complicated. Employers are encouraged to contact the Colorado Department of Labor and Employment (DLE) or an employment attorney to ensure compliance.

State leave law in Missouri is short-lived

In November 2024, Missouri voters passed a law requiring private employers to provide all employees with one hour of paid sick time for every 30 hours worked. The law was subjected to various legal challenges prior to its effective date of May 1, 2025. On May 14, the Missouri legislature repealed the law, but the requirement to provide paid leave remains in effect until August 28, 2025. There are no accrual limits, and employees can start using earned leave as soon as it accrues.

For employers, repeal of the law reduces the complexity of tracking sick leave in Missouri but may leave employees feeling uncertain about their job security during health crises.

Texas and Kansas (and most other states) don’t require paid leave

Neither Texas nor Kansas currently requires employers to provide paid sick leave. While this offers flexibility for businesses, it also lacks the protective structure many employees seek. Employers in both states – and other states without a paid leave requirement – should check their local city and county ordinances for paid leave mandates that may apply to them.

What these laws mean for multi-state businesses

For businesses operating in any combination of states with differing leave laws, the challenges multiply. You might be asking yourself:

1. How do we ensure compliance in each state?
2. How do we keep track of unique accrual and usage requirements?

3. How do the laws affect our own paid leave policies, such as PTO?
4. How do the state laws interact with the federal Family and Medical Leave Act?
5. How do we integrate fairness, especially when employees in different states have differing benefits?

These challenges can lead to confusion, administrative overload, and even potential legal issues if not addressed proactively. However, there are ways to handle the influx of evolving responsibilities.

Call in reinforcements

Hiring a Third-Party Administrator (TPA) can help reduce the complexity of leave management. TPAs specialize in tracking compliance and integrating their systems with your workforce management tools to reduce errors and stress.

Your employee benefits broker also plays a role. They can assist you in identifying the laws that apply to you and identifying and implementing the leave management solution that best meets your needs. Your broker can guide you through every step of the process.

Strengthen compliance and build trust

When you prioritize leave management, your business wins in more ways than one. Employees who feel supported by fair, easy-to-understand leave policies are not just more likely to stay with your company; they’re also more productive, engaged, and loyal.

State leave laws are constantly evolving, but with the right tools, partners, and mindset, you can create a workplace where compliance meets compassion.

If you’d like help getting started, reach out to an employee benefits advisor at The Miller Group.