Leave Policy in the United States
Manage USA's leave policies and holidays with Gloroots, streamlining annual leave, holiday requests, and organizing employee leave types efficiently
U.S. leave policy operates across three layers: federal statutes, state laws, and local ordinances. No single federal law mandates paid vacation or paid sick leave for private-sector employees. Instead, employers must track obligations under the Family and Medical Leave Act (FMLA), 11 federal public holidays, state-mandated sick leave programs, state paid family leave programs, and their own discretionary paid time off (PTO) policies.
This patchwork makes compliance difficult. Rules vary by state, employer size, employee tenure, and hours worked. What applies in California differs from what applies in Texas or New York.
- The Fair Labor Standards Act (FLSA) does not require private-sector employers to provide vacation, sick, or holiday pay.
- FMLA provides up to 12 weeks of unpaid, job-protected leave per year for eligible employees at covered employers with 50 or more staff.
- The 11 federal public holidays apply to federal employees. Private employers are not required to observe them.
- 14 states plus Washington D.C. have mandatory paid family leave programs, each with different benefit rates and eligibility rules.
- 19 or more states mandate paid sick leave, with accrual rates, caps, and carryover rules that differ by jurisdiction.
Gloroots helps global employers manage U.S. leave compliance across federal and state layers through local execution and centralized governance.
Leave Policy at a Glance
| Leave Type | Entitlement | Mandatory | Notes |
|---|---|---|---|
| Annual Leave / PTO | No federal minimum; employer discretion | No | BLS data shows an average of approximately 10 days at 1 year of service for private-sector workers |
| Federal Public Holidays | 11 days for federal employees | No (private sector) | Private employers are not required to observe federal holidays or provide holiday pay |
| Sick Leave | No federal mandate; state mandates in 19 or more states | Varies by state | Accrual rates, caps, and carryover rules differ by jurisdiction |
| FMLA | Up to 12 weeks unpaid per year | Yes, for covered employers (50 or more employees) | Eligibility requires 1 year of tenure and 1,250 hours worked in the prior 12 months |
| Paid Family Leave | No federal program; 14 states plus D.C. have mandatory programs | Varies by state | Benefit rates, duration, and funding mechanisms differ by state |
| Maternity / Paternity Leave | FMLA: 12 weeks unpaid; FEPLA: 12 weeks paid for federal employees | Partial (federal employees only for paid leave) | Private-sector employees rely on FMLA unpaid leave and any applicable state paid family leave |
| Bereavement Leave | No federal mandate; typical employer practice is 3 to 5 days | No | Some states have enacted bereavement leave requirements; check state law |
| Military Leave | Reemployment rights under USERRA | Yes (federal, USERRA) | Employees returning from military service have job-protected reemployment rights |
| Jury Duty Leave | Unpaid, job-protected leave | Yes (federal and state laws) | Employers may not terminate or penalize employees for serving on a jury |
Overview and Legal Basis for Leave in the United States
Several federal statutes govern leave entitlements in the United States. The core laws are: FMLA (29 U.S.C. § 2601), FLSA (29 U.S.C. § 201), USERRA (38 U.S.C. §§ 4301–4335), FEPLA (5 U.S.C. § 6382), ADA (42 U.S.C. § 12112), and Title VII (42 U.S.C. § 2000e).
FMLA and USERRA establish statutory minimums: unpaid, job-protected leave for qualifying medical, family, and military situations. FLSA, by contrast, does not require vacation, holiday, severance, or sick pay for private-sector employees. Those benefits exist only when an employer and employee agree to them.
State laws layer on top of federal minimums and frequently exceed them. California, New York, and several other states mandate paid sick leave and paid family leave where federal law is silent. Employers operating across multiple states must track both levels. Understanding how does EOR work can help companies manage these layered obligations without establishing a local entity.
Covered leave categories under U.S. law include:
- FMLA medical and family leave (up to 12 or 26 weeks, unpaid)
- Federal public holidays (11 days, discretionary for private employers)
- State-mandated sick leave
- State paid family leave programs
- Military leave under USERRA
- ADA reasonable accommodation leave
- Title VII religious observance accommodation
Annual Leave (Earned / Privilege Leave)
No federal law requires private-sector employers to provide paid vacation. The FLSA is silent on vacation, and any PTO a private employer offers is entirely discretionary.
Bureau of Labor Statistics data shows that private-sector workers receive an average of approximately 10 days of PTO after one year of service, 15 days after five years, and 19 days after 20 years. These figures reflect market norms, not legal floors. Some employers have moved to unlimited PTO policies, which carry no statutory requirement or cap.
Federal employees follow a different framework under 5 U.S.C. § 6303. Annual leave accrues based on length of service:
- Fewer than 3 years: 4 hours per pay period (13 days per year)
- 3 to 15 years: 6 hours per pay period (20 days per year)
- 15 or more years: 8 hours per pay period (26 days per year)
Federal employees are also subject to a carry-over ceiling under 5 U.S.C. § 6304. U.S.-based employees may carry over a maximum of 30 days. Overseas employees may carry over 45 days, and senior or professional employees may carry over up to 90 days. Leave above those ceilings is forfeited at year-end under the use-or-lose rule.
For private-sector employees, approval and notice requirements are set entirely by employer policy. No federal standard applies.
Public Holidays
The United States recognizes 11 federal public holidays under 5 U.S.C. § 6103. These apply to federal employees and federally regulated workplaces. Private employers are not legally required to observe them.
When a federal holiday falls on Saturday, it is observed on the preceding Friday. When it falls on Sunday, it is observed on the following Monday. Many private employers offer 10 to 11 paid holidays annually as a competitive benefit, even without a legal obligation. Some states and localities also designate additional holidays beyond the federal list.
| Holiday | 2025 Observed Date |
|---|---|
| New Year's Day | January 1 (Wednesday) |
| Martin Luther King Jr. Day | January 20 (Monday) |
| Presidents Day | February 17 (Monday) |
| Memorial Day | May 26 (Monday) |
| Juneteenth | June 19 (Thursday) |
| Independence Day | July 4 (Friday) |
| Labor Day | September 1 (Monday) |
| Columbus Day | October 13 (Monday) |
| Veterans Day | November 11 (Tuesday) |
| Thanksgiving Day | November 27 (Thursday) |
| Christmas Day | December 25 (Thursday) |
Dates above reflect 2025 observed dates and should be reviewed annually. For a comparison with a neighboring country's public holiday entitlements, see the leave policy in Canada.
Sick Leave
No federal law requires private-sector employers to provide paid sick leave. The Family and Medical Leave Act (FMLA) offers up to 12 weeks of unpaid, job-protected leave per year, but it covers serious health conditions, not routine illness.
As of 2025, more than 19 states mandate paid sick leave for private-sector employees, including Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington.
Accrual rates vary by state. The most common rate is 1 hour of sick leave for every 30 to 40 hours worked. Annual caps typically range from 40 to 80 hours depending on the jurisdiction.
City and county ordinances add another layer of requirements. New York City, Chicago, and Seattle each maintain their own sick leave rules that may exceed state minimums. Employers operating across multiple locations must track each applicable ordinance separately.
For absences exceeding three consecutive days, employers may require supporting documentation from a healthcare provider.
Casual Leave
"Casual leave" is not a recognized statutory category under U.S. federal or state law. No federal statute mandates it, and no state has codified it as a distinct entitlement.
In U.S. practice, casual leave is typically absorbed into PTO banks or designated as personal days. Many employers offer one to three personal days per year to cover short-notice or personal needs.
Personal days are generally non-accruing and non-encashable. Employees may use them at their discretion, subject to manager approval and business requirements.
Maternity Leave
The U.S. has no federal paid maternity leave for private-sector employees. The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid, job-protected leave per year for qualifying family and medical reasons, including childbirth.
To qualify for FMLA, an employee must work for an employer with 50 or more employees, have at least 12 months of tenure, and have worked a minimum of 1,250 hours in the preceding year.
Federal civilian employees have a separate entitlement. Under 5 U.S.C. § 6382, the Federal Employee Paid Leave Act (FEPLA) provides 12 weeks of paid parental leave for births, adoptions, and foster placements on or after October 1, 2020.
Fourteen states plus Washington D.C. have enacted mandatory paid family leave (PFL) programs that cover maternity. Key state programs include:
- California: 8 weeks at 60–70% of average weekly wages (AWW), up to approximately $1,765 per week
- New York: 12 weeks at 67% AWW, up to approximately $1,228.53 per week
- New Jersey: 12 weeks at 85% AWW, up to approximately $1,119 per week
- Washington: 12 weeks at 90% AWW, up to approximately $1,647 per week
The table below summarizes entitlements by scenario. Employers hiring across multiple states should verify applicable state PFL rules, as benefit amounts and eligibility conditions vary. For a comparison with more generous statutory schemes, see the leave policy in the UK.
| Scenario | Federal entitlement | State / additional entitlement |
|---|---|---|
| Birth | FMLA: 12 weeks unpaid | State PFL varies by state (see above) |
| Adoption | FMLA: 12 weeks unpaid; FEPLA: 12 weeks paid (federal employees only) | State PFL varies by state |
| Surrogacy | FMLA may apply depending on circumstances | State PFL varies by state |
| Serious health complication | FMLA: 12 weeks unpaid | State short-term disability insurance (SDI) may apply |
Private-sector employees in states without PFL programs rely entirely on FMLA unpaid leave and any employer-provided benefits. Employers should confirm state-specific rules before setting maternity leave policy.
Paternity Leave
No federal law requires private-sector employers to provide paid paternity leave. However, the Family and Medical Leave Act (FMLA) entitles eligible new fathers to 12 weeks of unpaid, job-protected leave for the birth, adoption, or foster placement of a child.
Federal employees receive stronger protection. The Federal Employee Paid Leave Act (FEPLA) grants federal employee fathers 12 weeks of paid parental leave on the same terms as mothers.
Fourteen states and Washington D.C. operate paid family leave (PFL) programs that cover fathers and non-birthing parents on equal terms with mothers. In the private sector, many large employers voluntarily offer 2 to 4 weeks of paid paternity leave as a competitive benefit, though no federal floor exists.
Adoption and Surrogacy Leave
FMLA covers adoption and foster care placement. Eligible employees may take up to 12 weeks of unpaid, job-protected leave when a child is placed with them for adoption or foster care. Leave must be taken within 12 months of placement.
Federal employees are covered under FEPLA, which provides 12 weeks of paid parental leave for adoption or foster placement on or after October 1, 2020. All 14 mandatory PFL states and Washington D.C. include adoptive parents under their paid family leave programs.
For surrogacy, FMLA may apply to the intended parent if they hold legal parent status. State PFL coverage for surrogacy varies by jurisdiction. Employers may require documentation such as an adoption agency letter or court order before approving leave.
Bereavement Leave
No federal law requires private-sector employers to provide bereavement leave. The FLSA does not mandate it, and FMLA does not cover bereavement except where a family member's death follows a serious health condition already under FMLA protection.
Most employers voluntarily offer 3 to 5 days of paid bereavement leave for immediate family members, including a spouse, child, parent, or sibling. Some extend 1 to 3 days for extended family such as grandparents or in-laws, per the DOL Funeral Leave guidance.
At the state level, Illinois enacted the Family Bereavement Leave Act in 2023, requiring covered employers to provide job-protected bereavement leave. It remains one of the more detailed state-level mandates in this area.
Other Leave Types
Several federal statutes create leave rights beyond FMLA and state sick leave laws.
Military leave (USERRA): The Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. sections 4301 to 4335) applies to all U.S. employers regardless of size. It protects reemployment rights, continuation of benefits, and prohibits discrimination against members of the National Guard, Reserves, and active duty forces.
FMLA military family leave: Under 29 C.F.R. Part 825 Subpart C, eligible employees may take up to 12 weeks of Qualifying Exigency Leave for 10 covered reasons, or up to 26 weeks of Military Caregiver Leave to care for a covered servicemember with a serious injury or illness.
Religious observance leave: Title VII of the Civil Rights Act of 1964 (42 U.S.C. section 2000e(j)) requires employers to make reasonable accommodations for religious practices, which can include time off for religious observances.
ADA leave: The Americans with Disabilities Act (42 U.S.C. section 12112(b)(5)) may require unpaid leave as a reasonable accommodation for employees with disabilities, independent of any FMLA entitlement.
Domestic and sexual violence victim leave: Multiple states mandate job-protected leave, paid or unpaid, for victims of domestic violence, sexual assault, or stalking. States with such laws include California, Alaska, Arizona, Colorado, Connecticut, Washington D.C., Florida, Hawaii, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, and Washington.
State or Regional Variations in Leave Entitlements
Federal law sets a minimum floor for leave in the United States. States may exceed that floor, and employers must comply with whichever standard is more generous to the employee.
State-level paid family leave, paid sick leave, and parental leave mandates create materially different obligations depending on where employees work. Employers managing multi-state workforces benefit from employer of record software that tracks these obligations by location.
| State/Region | Paid Family Leave | Paid Sick Leave | Notable Additional Leave | Notes |
|---|---|---|---|---|
| California | 8 weeks at 60–70% AWW | 1 hr per 30 hrs worked, up to 80 hrs/yr | Pregnancy Disability Leave up to 4 months | CFRA covers employers with 5+ employees; military spouse leave (10 days unpaid) for employers with 25+ |
| New York | 12 weeks at 67% AWW, max $1,228.53/wk | 1 hr per 30 hrs worked, up to 56 hrs/yr | None | NY PFL covers adoptive parents |
| New Jersey | 12 weeks FLI at 85% AWW, max $1,119/wk | 1 hr per 30 hrs worked, up to 40 hrs/yr | None | None |
| Washington | 12 weeks PFML at 90% AWW, max $1,647/wk | 1 hr per 40 hrs worked, up to 40 hrs/yr | None | None |
| Massachusetts | 12 weeks PFML, up to $1,149.90/wk | 1 hr per 30 hrs worked, up to 40 hrs/yr | None | None |
| Texas | No state PFL | No statewide mandate | None | At-will state; no state sick leave mandate statewide |
Several states also require school activities leave, including California, Illinois, New Jersey, New Mexico, and Michigan.
Carry-Forward and Leave Encashment Rules
No federal law requires employers to allow carry-forward of unused paid time off or to pay out unused vacation at termination. The FLSA is silent on both points.
State law governs encashment. California treats accrued vacation as earned wages under Cal. Lab. Code Section 227.3, requiring employers to pay out all unused vacation at termination. Illinois, Massachusetts, Montana, and Nebraska follow similar rules.
Use-it-or-lose-it policies are permitted in some states, including New York and Texas. California and Montana prohibit them outright. Employers must document PTO policies clearly in employee handbooks for those policies to be enforceable.
Federal employees operate under a separate framework set by 5 U.S.C. Section 6304. Annual leave carry-forward caps are 30 days for U.S.-based employees, 45 days for overseas employees, and 90 days for SES and senior-level employees. Leave above those caps is forfeited at the end of the leave year under the federal Use or Lose rule.
For employers comparing these rules internationally, the leave policy in Germany offers a useful contrast, as German law sets statutory minimum carry-forward periods that differ significantly from the U.S. at-will framework.
Best Practices for Managing Leave Compliantly in the United States
Compliant leave management in the United States requires tracking obligations at three distinct levels: federal, state, and local. Employers must audit each layer for every location where employees work, because obligations differ materially between states.
- Audit by location: Federal FMLA sets a baseline, but state and local laws often impose stricter requirements. Review obligations separately for each state where employees are based. Consider EOR services to manage multi-state compliance without building internal legal capacity in each jurisdiction.
- Communicate entitlements clearly: Maintain a written leave policy in the employee handbook. Distinguish statutory entitlements from discretionary benefits so employees and managers understand what is required by law versus what the company offers voluntarily.
- Document consistently: Use a single system to track FMLA certifications, state paid family leave claim numbers, and PTO balances. Consistent records reduce disputes and limit audit exposure.
- Offer above the statutory floor: BLS data shows most private employers provide 10 or more days of PTO even without a legal mandate. Paid parental leave and bereavement leave above the legal minimum support retention in a competitive hiring market.
Managing Leave Policy in the United States with Gloroots
U.S. leave compliance requires tracking federal FMLA, paid family leave programs across more than a dozen states, and local sick leave ordinances at the same time. For global employers hiring across multiple states, that obligation compounds quickly.
Gloroots acts as the employer of record, absorbing the compliance obligation for federal and state leave laws directly. The platform tracks leave balances, calculates FMLA and state paid family leave eligibility, integrates state PFL deductions into payroll, and produces compliance reporting for each jurisdiction.
This means your team does not need to monitor every state legislature or administer separate leave accounts per location. Gloroots handles local execution under centralized governance. Review pricing to evaluate the cost of managing U.S. leave compliance through Gloroots.
Frequently Asked Questions About Leave Policy in the United States
Does the United States have federal paid family leave?
No federal paid family leave program exists for private-sector employees. The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid, job-protected leave per year for eligible employees at covered employers.
Federal civilian employees receive 12 weeks of paid parental leave under the Federal Employee Paid Leave Act (FEPLA), codified at 5 U.S.C. § 6382. Fourteen states and Washington, D.C. have enacted mandatory paid family leave programs covering private-sector workers.
How many federal public holidays do U.S. employees get?
There are 11 federal public holidays under 5 U.S.C. § 6103. These apply automatically to federal employees and federally regulated workplaces.
Private-sector employers are not legally required to observe federal holidays or provide paid time off on those days. Most private employers offer 10 to 11 paid holidays as a competitive benefit.
Are private employers required to provide paid vacation or sick leave?
The Fair Labor Standards Act does not require private employers to provide paid vacation, sick leave, or holiday pay. These benefits are governed by employer-employee agreement.
Nineteen or more states have enacted mandatory paid sick leave laws with varying accrual rates and caps. Employers must comply with whichever standard, federal, state, or local, is most generous to the employee.
What is the U.S. maternity leave law for private-sector employees?
The Family and Medical Leave Act (FMLA) is the primary federal law. It provides up to 12 weeks of unpaid, job-protected leave for eligible employees at employers with 50 or more workers.
No federal law requires paid maternity leave for private-sector employees. State programs in California, New York, New Jersey, and Washington provide partial wage replacement during maternity leave.
What is the standard workweek and overtime rule in the United States?
The Fair Labor Standards Act sets a 40-hour standard workweek under 29 U.S.C. § 207. Non-exempt employees who work beyond 40 hours must receive overtime pay at 1.5 times their regular rate.
Exempt employees, typically salaried workers who meet salary and duties tests, are not entitled to overtime pay. Some states set different overtime thresholds that may apply in addition to federal rules.
Can unused PTO be carried forward or paid out at termination in the U.S.?
No federal law requires employers to allow PTO carry-forward or to pay out unused vacation at termination. State law and employer policy govern these rules.
California treats accrued vacation as earned wages, requiring payout at termination under California Labor Code § 227.3. Illinois, Massachusetts, and Montana have similar requirements. Some states permit use-it-or-lose-it policies when employers provide proper written notice.
What is at-will employment and does it affect leave rights?
U.S. employment is generally at-will, meaning either party may end the relationship at any time without a statutory notice period. No federal law mandates a minimum notice period for individual terminations.
The WARN Act (29 U.S.C. § 2101) requires 60 days' advance notice only for mass layoffs of 100 or more employees. At-will status does not override statutory leave protections such as FMLA or USERRA reemployment rights.
Ready to take the first step?
Request a demo now and learn how you can focus on building, without worrying for compliance, ever!
