2025
LEADING ON LEAVE
REPORT
Highlighting private sector trends in paid leave policies and companies championing the workExecutive Summary
Since 2019, the National Partnership for Women & Families’ Leading on Leave has helped highlight trends in corporate paid leave policies and the benefits they provide to companies and their workers.Find out more information about these Leaders.
Findings
Large companies that participated in Leading on Leave tend to shine in offering comprehensive and highly accessible paid leave benefits to both full-time and part-time employees, likely due to their greater financial resources and established human resource (HR) policies. They are more likely than SMEs to provide extended parental leave, family/caregiving leave and medical leave with full salary coverage, often ensuring that employees receive benefits from their first day on the job.
Large firms typically offer more flexible family definitions for family/caregiving and sick leave, allowing employees to take time to care for families, including extended families and loved ones, reflecting modern family structures. They maintain stronger job protection policies, ensuring that employees do not face negative consequences for taking leave. Large companies are also more likely than smaller ones to not require employees to find coverage before taking leave, highlighting their commitment to workplace flexibility and employee well-being.
For their part, SMEs stand out in their ability to integrate flexibility and personalization into their paid leave policies, often making them more adaptable to employees’ needs. SMEs implementing unlimited paid time off (PTO) are more likely to include a more expansive range of leave types – such as parental, sick and medical leave – under this structure, fostering a more holistic approach to employee well-being. Additionally, SMEs offering return-to-work programs often extend them to both full-time and part-time employees, demonstrating a commitment to reintegrating all workers effectively.
While they may have shorter durations of paid leave compared to larger firms, SMEs are often more nimble in creating leave policies that fit their workforce needs, allowing for tailored approaches that balance business operations with employee support. In contrast, however, the lower availability of extended leave at SMEs signals a need for public policy solutions to help them offer more comprehensive benefits.
Why Improve Paid Leave for Employees?
Enhancing paid leave policies is critical for companies to support employee well-being, productivity and retention. Employees who have access to sufficient paid leave for parental, medical and family caregiving responsibilities are less likely to experience burnout, stress and financial strain, leading to higher engagement and job satisfaction. Studies have shown that employees who take adequate time off for personal or family needs return to work more focused and productive, benefiting overall workplace efficiency.
By prioritizing paid leave improvements, businesses can create a healthier, more loyal and more engaged workforce, ultimately driving greater organizational success.
Additionally, comprehensive paid leave policies create a fairer work environment, particularly for employees balancing work with caregiving responsibilities. Research has demonstrated that they can help close the gender wage gap and retain and attract women, who continue to bear the majority of caregiving responsibilities. By ensuring that all employees – regardless of gender, role or family situation – can access paid leave, companies can foster a culture of support, fairness and long-term loyalty.
Beyond employee well-being, strong paid leave policies also provide a competitive advantage in attracting and retaining top talent. In today’s labor market, job seekers are increasingly prioritizing work-life balance and benefits packages when choosing employers. Companies that offer robust paid leave policies stand out as employers of choice, particularly for women and young workers, reducing turnover and recruitment costs while increasing workforce stability.
Businesses that invest in generous paid leave programs often see higher morale, improved employer reputation and increased employee retention rates. By prioritizing paid leave improvements, businesses can create a healthier, more loyal and more engaged workforce, ultimately driving greater organizational success.
Next Generation Leading on Leave
The National Partnership has been leading paid leave research, policy and partnerships for more than 50 years, which makes us uniquely suited to highlight employers’ benefits for their workers.
To learn more about the Leading on Leave program and our application process, download the Leading on Leave Overview.
When it was first established in 2019, Leading on Leave was created by compiling news reports and information that companies published online. Our past report about the data using these methods can be found here.
While Leading on Leave was valuable for providing information about broad trends in corporate paid leave policy, the lack of publicly-available data provided by companies limited the report’s potential to improve paid leave policies and inform job seekers, employees and policymakers about the current state of paid leave.
In 2024, we modified our data collection, asking companies directly about their paid leave practices through an application process. The new Leading on Leave now offers companies a unique opportunity to be evaluated on their paid leave benefits through information they provide directly. It covers a range of topics, demographics and issue areas that are fundamental to supportive paid leave policies for employees. For their involvement, employers that submitted an application also receive guidance on best practices to improve their paid leave offerings.
Providing companies with a benchmarking tool like Leading on Leave for paid leave benefits is essential to help them evaluate their policies against industry standards, identify gaps and make data-driven improvements.
Providing companies with a benchmarking tool like Leading on Leave is essential to help them evaluate their paid leave policies against industry standards, identify gaps and make data-driven improvements. Not only does it allow companies to compare their leave offerings with their peers, ensuring they remain competitive in attracting and retaining talent, Leading on Leave also provides insights into best practices, enabling companies to see where they may be falling behind and what adjustments they can make to enhance employee satisfaction and compliance with evolving regulations. Through their participation in Leading on Leave, companies can make strategic decisions about their paid leave policies, leading to a more engaged workforce, reduced turnover and a stronger employer brand.
Methodology
Private sector companies of all sizes that offer paid leave benefits to employees were invited to submit an application for Leading on Leave between June 12 and October 25, 2024. The application questions covered a range of employee demographic information and information about companies’ paid leave benefits, including details about how well they meet the needs of the modern-day workforce, when access to benefits begins, wage replacement and communication methods.To view the glossary of terms used in the Leading on Leave application and in this report, visit the following website: https://nationalpartnership.org/leading-on-leave-glossary/ Companies were scored based on the level of disclosure they provided in the application as well as their alignment to researched paid leave best practices.
Findings
Twenty companies participated in the 2024 Leading on Leave, divided into two groups for our analysis: Large companies that have annual revenues of $1 billion or more and SMEs with less than $1 billion in annual revenue.
Because of the small sample size, findings may not be fully representative of broader industry trends or the policies of all companies within similar size categories. Additionally, the data does not account for potential industry-specific differences or regional variations that might impact benefits and policies. However, while not representative of the entire business community, these data offer critical details regarding the practices of a wide range of businesses.
Demographic Overview
Large companies that responded to Leading on Leave range in employee size from 1,600 to 126,000. In contrast, the employee size of SME respondents varies from 5 employees to almost 1,300 on staff. Companies from both group sizes also come from a range of industries, including finance, retail, technology, consulting and more.
Of the large companies in our sample, 88 percent are headquartered in states with paid family medical leave (PFML) programs currently in effect, though all of them are headquartered in states where PFML policies have been passed.Paid family and medical leave (PFML) refers to policies that allow workers to receive wage replacement when they take extended time off from work for qualifying reasons, such as bonding with a new child, recovering from their own serious health condition or caring for a loved one with a serious health condition. Unlike the federal Family and Medical Leave Act (FMLA), which only provides unpaid leave, paid family and medical leave offers financial support during the leave period. Paid family and medical leave laws vary by state and locality. Among the SMEs, 50 percent of the SMEs are located in states with PFML programs already in effect, though a total of two-thirds of these businesses are headquartered in states that have passed paid leave policies. Finally, among those companies that answered the question, the average benefits enrollment rate for full-time employees in large companies is 96 percent compared to 87 percent in SMEs.
Segmented Leave for Full-time Employees
Parental Leave
Parental leave permits caregivers to bond with a newborn or newly placed child via adoption or foster care.By law through the Family and Medical Leave Act (FMLA), companies that have 50 or more employees within a 75-mile radius are required to provide up to 12 weeks of job-protected leave to eligible employees for the birth, adoption or fostering of a child; to address their own or a family member’s serious health condition; or to address certain military service-related needs. Only employees that have worked at the employer for 12 months and for at least 1,250 hours in the past year are eligible under FMLA. The FMLA does not require the leave to be paid, but employees may be able to use other paid leave benefits. The law mandates that during this leave, employees must continue to receive their employer-sponsored health benefits if the employer offers them. While there is currently no national paid leave law in the United States, all of the large companies in our sample and all but the smallest of the SMEs, likely are covered by the FMLA; however, individual employees at those employers may not be eligible. All of the large companies provide paid parental leave for full-time employees for the birth, adoption and fostering of a child and 88 percent of these companies offer the same benefits for adoption and fostering as they do for the birth of a child. Eighty-three percent of SMEs offer paid parental leave for birth and adoption and 67 percent provide these benefits for fostering.Forty percent of SMEs who responded to the question state that their adoption and fostering benefits are the same as those offered for the birth of a child. This is in stark contrast to the fact that only 27 percent of workers nationwide have access to paid family leave through their employer.
None of the large companies that participated in Leading on Leave distinguish between primary and secondary parental leave. In comparison, 64 percent of SMEs that responded to the question do not have a primary/secondary parental leave distinction.
By offering the same parental leave benefits to all parents, regardless of their caregiving role, organizations can foster a more balanced workplace and simplify benefits administration. SMEs may be more inclined to differentiate between primary and secondary parental leave to manage workforce coverage and operational needs more effectively; however, in doing so, they risk conveying outdated stereotypes about parenting and not aligning with the needs of modern-day parents.Large firms that do not differentiate between primary and secondary parental leave provide more than 14 weeks of fully paid parental leave and cover 100 percent of an employee’s salary for the birth of a child, whereas SMEs that do not differentiate offer more than 10 weeks of parental leave and cover 83 percent of an employee’s salary on average.The offering of fully paid parental leave among large companies in our sample ranges from 8-26 weeks with a median of 14 weeks. For SMEs who responded to this question, the range of paid parental leave offered is from 0-20 weeks with a median of 12 weeks.
While companies within both size categories recognize the importance of parental leave, the difference in typical benefits offered likely reflects the financial flexibility and workforce management strategies that larger corporations can leverage compared to SMEs. In light of recent survey data indicating that small employers want to offer more paid leave than they currently do, our data illustrates a gap that public policy solutions could help fill.
Family/Caregiving Leave
Family/caregiving leave is offered to employees to care for a family member with a serious health condition, taken either for acute conditions where leave is needed for one continuous block of time or for chronic conditions where leave is needed on an intermittent basis.By law through the Family and Medical Leave Act (FMLA), companies that have 50 or more employees within a 75-mile radius are required to provide up to 12 weeks of job-protected leave to eligible employees for the birth, adoption or fostering of a child; to address their own or a family member’s serious health condition; or to address certain military service-related needs. Only employees that have worked at the employer for 12 months and for at least 1,250 hours in the past year are eligible under FMLA. In Leading on Leave, large companies are more likely to offer formal family/caregiving leave benefits, with 75 percent of them providing paid leave for full-time employees to care for children, spouses or parents, compared to only 50 percent of SMEs. All of the large companies and SMEs that provide caregiving leave for employees offer it to care for children, spouses or parents. However, fewer who offer caregiving leave extend it to siblings, grandparents, in-laws, grandchildren and other non-familial close relationships, with half of large firms and SMEs offering this benefit. All of the large firms that offer family/caregiving benefits report not requiring advanced notice for leave, whereas only 17 percent of the SMEs provide this flexibility. This benefit is particularly important for confirming that employees whose family members have health emergencies are not penalized at work. Workplace protections also vary among those offering the benefit, with 67 percent of large firms and 50 percent of SMEs ensuring that taking caregiving leave does not negatively impact promotions or performance evaluations. Requiring an employee to find their own replacement before taking leave can pose a barrier to use, particularly for emergency situations. When considering workload coverage and flexibility, 100 percent of large companies offering family/caregiving leave in our sample do not require employees to find replacement coverage when taking leave compared to 67 percent of SMEs, perhaps because larger organizations feel better equipped to absorb temporary absences. However, SMEs should review their policies to make certain that they are in compliance with any state and local leave laws where they operate, which typically limit employers’ ability to require employees to find replacements. All of the large firms and 67 percent of SMEs with family/caregiving leave providing this benefit allow leave benefits to start within the first 89 days of employment. Both groups of companies offer intermittent leave without requiring supervisor approval at the same rate (67 percent), indicating that flexibility for recurring caregiving responsibilities is similarly valued across both groups.Medical Leave
Medical leave is beneficial when an employee is unable to work because of their own serious health condition, including recovery from childbirth, and is typically used for conditions that last for a week or longer. Like family/caregiving leave, medical leave can be taken either for acute conditions where leave is needed for one continuous block of time or for chronic conditions where leave is needed on an intermittent basis. For Leading on Leave respondents, 100 percent of large companies and 67 percent of SMEs provide this benefit for full-time employees. And among these companies, 88 percent of large firms and 71 percent of SMEs who responded state that they provide 100 percent of a full-time employee’s salary when they take medical leave. With respect to leave documentation and flexibility, 88 percent of large firms and 50 percent of SMEs do not require advance notice for medical leave. Despite these differences, half of both large companies and SMEs ensure that taking medical leave will not result in negative job consequences (e.g., promotions, evaluations or attendance records), showing that employment protections for medical leave are equally prioritized across both company sizes. Regarding leave coverage policies and when benefits become available, 88 percent of large firms and 50 percent of SMEs state that employees are not obligated to find replacement coverage for their jobs while on leave. However, 75 percent of large firms allow employees to take medical leave without a minimum time increment, compared to only 38 percent of SMEs who offer medical leave, indicating that larger firms offer greater flexibility in how medical leave is taken. Both large companies and SMEs that responded to Leading on Leave extend some medical leave benefits early in employees’ tenure. Eighty-eight percent of large firms and 63 percent of SMEs provide medical leave benefits within the first 89 days of employment. And 75 percent of SMEs report that there is no unpaid waiting period before medical leave can be taken in contrast with 63 percent of large firms.Sick Leave
In contrast to medical leave or family/caregiving leave, sick leave is typically taken for shorter periods of time – from a few hours to days. Additionally, the number of sick days that employees are granted by employers is typically limited and the benefit is paid at the employee’s usual full wage. Sick leave could be used by a worker who takes sick time for their own illness or medical appointment or, if the employer’s policy allows, a family member’s illness or medical appointment.
Among Leading on Leave participants, 75 percent of large companies and 67 percent of SMEs offer paid sick leave policies to their full-time employees, though for some of these companies, other leave offerings like unlimited paid time off may cover this need.
In terms of the types of relationships covered under sick leave, all of the large companies and SMEs that provide sick leave in our sample extend the benefits to employees caring for children, spouses or parents. Coverage to care for extended family including siblings, grandparents, in-laws or grandchildren is offered by 100 percent of large companies, but only 75 percent of SMEs do the same. Similarly, sick leave for close relationships beyond family (such as close friends or chosen family) is provided by 83 percent of large firms compared to 63 percent of SMEs.
All of the large firms that offer sick leave offer at least 5 to 14 days of fully paid leave in contrast with only 38 percent of SMEs. When it comes to extended paid sick leave of 15 or more days, the numbers drop significantly for both groups: 17 percent of large companies and 13 percent of SMEs offer this benefit, perhaps relying instead on short-term disability insurance coverage for longer leave periods (see section above on Medical Leave).
Regarding administrative policies and job protections, all of the large companies and 75 percent of SMEs that report providing sick leave do not require advanced notice for leave to be taken. Additionally, 83 percent of large firms and 63 percent of SMEs permit employees to take sick leave without documentation for up to three days. When documentation is required, 50 percent of large firms and 25 percent of SMEs accept certification from health care professionals beyond medical doctors. Finally, 100 percent of large firms and 63 percent of SMEs provide sick leave benefits within the first 89 days of employment. These variations highlight the greater flexibility that larger organizations can provide likely as a result of their more substantial organizational resources.
Vacation Leave
Vacation leave is paid time off for a purpose of the employee’s choosing. Sixty-three percent of large companies and 67 percent of SMEs offer vacation leave to their full-time employees through traditional paid leave benefits.Note that like sick leave, vacation leave may be covered by some companies under unlimited paid time off for some companies.
In Leading on Leave, among firms that offer vacation leave, 60 percent of large firms and 50 percent of SMEs explicitly state that employees will not face negative job consequences (such as promotions, evaluations or attendance records) for taking vacation. Additionally, 80 percent of large firms and 63 percent of SMEs state that employees are not required to find their own coverage while on vacation. These differences may highlight resource availability and operational flexibility where larger firms can provide more robust benefits.
All of the large firms and 63 percent of SMEs offering vacation leave through traditional benefits permit it to start accruing from the first day of employment. In addition, 100 percent of large firms and 63 percent of SMEs offer vacation benefits that begin within the first 89 days of employment, findings that are likely reflective of the greater operational flexibility of large companies.
Other Paid Leave Benefits
The distinctions between large companies and SMEs that participated in Leading on Leave are similar for other paid leave benefits for full-time employees. All of the large companies and 67 percent of SMEs have a separate bereavement policy and 100 percent of large firms and 33 percent of SMEs provide military deployment leave. Additional conversations with businesses indicate that larger companies may be more likely to formalize these policies to ensure that employees facing difficult personal circumstances have structured leave options, whereas SMEs may handle such situations on a case-by-case basis.
Paid leave benefits that address other health, care and safety needs also vary among the two groups. Sixty-three percent of large companies and 33 percent of SMEs provide pregnancy loss leave; 63 percent of large firms and 17 percent of SMEs offer safe leave for sexual, domestic or other violence-related needs; and 63 percent of large firms and 17 percent of SMEs extend abortion travel support leave to full-time employees.These needs may be covered under other company leave policies like sick leave; such offerings were not captured in the Leading on Leave application.
Segmented Leave for Part-time Employees
Both large companies and SMEs in our sample extend paid leave benefits to part-time employees but in different ways. For their part, 63 percent of large companies provide paid leave benefits to their part-time employees, providing them with the same benefits offered to their full-time employees. This policy may be used to promote fairness, improve retention and stay competitive in attracting part-time talent, particularly women – who historically represent the majority of part-time workers – and in industries where part-time workers make up a significant portion of the workforce.
Fifty percent of SMEs that responded to the question do not provide paid leave benefits to part-time employees at all. Of the other 50 percent of companies that do provide paid leave benefits to part-time employees, 20 percent provide the same paid leave benefits to both full-time and part-time employees and 80 percent of SMEs offer different paid leave benefits to part-time employees than what they offer to full-time staff. Among SMEs that provide different benefits to part-time employees, 75 percent offer sick leave and vacation to their part-time employees, which may allow SMEs to remain competitive in hiring part-time employees without overextending their resources.
Unlimited Paid Time Off
Also known as “flexible leave” or “responsible leave,” unlimited PTO allows employees to take as many paid days off as they would like as long as they fulfill the requirements of their job. Unlike traditional PTO where employees accrue a set number of days per year, unlimited PTO ideally allows for greater autonomy and empowers employees to manage their own leave. It can be a strong job recruiting tool, especially for firms that emphasize workplace flexibility and can also reduce administrative burdens of HR departments.
While unlimited PTO can be beneficial for employees, research has also shown that employees with these benefits may avoid taking leave entirely, feeling implicit pressure to keep working or fearing they might appear less committed. Without clear guidelines, this paid leave structure can create confusion and may contribute to reduced productivity.
While half of the Leading on Leave respondent companies in both employee size categories offer unlimited PTO to their employees, differences exist in the types of leave covered between the two groups. Seventy-five percent of large companies and 50 percent of SMEs extend this leave only to certain employee groups, such as full-time or salaried employees or executive leadership.
Return to Work After Extended Leave
Return-to-work policy sets guidelines for how and when employees will transition back to the workplace after a period of extended leave. Return-to-work policies could include setting communication guidance between the manager and employee while out of office, providing a phased return for gradual re-entry and flexible working arrangements. They are beneficial for both companies and employees, helping to restore structure, improve collaboration and boost employee morale.
Fifty percent of large companies and 33 percent of SMEs that responded to the question report providing return-to-work programs after extended leave. For full-time employees, 100 percent of large companies and 75 percent of SMEs providing this benefit offer the program after parental leave. With family/caregiving leave and medical leave, 50 percent of both large and SMEs provide return-to-work programs for full-time employees, which may indicate a like-minded support for reintegration into workplaces.
For part-time employees, 75 percent of SMEs offer return-to-work programs compared to only 50 percent of large companies. This finding may imply that SMEs may be more flexible in reintegration support for part-time workers due to closer-knit work environments and the need to retain skilled part-time staff. In contrast, large companies may focus their return-to-work programs more heavily on full-time employees since they are more integral to the day-to-day operations and typically have longer-term commitments to a company.
Recommendations
Overall, the Leading on Leave findings suggest that while both large companies and small companies are dedicated to investing in their paid leave benefits, large companies unsurprisingly tend to have more robust leave policies, likely the result of greater financial resources, larger HR infrastructures, legal compliance considerations and/or a greater focus on employee well-being as a retention strategy. SMEs, while sometimes offering similar leave benefits, are less likely to formalize these policies and instead may handle such requests on a case-by-case basis.
Both groups, however, can do more to improve the paid leave benefits they offer, continuing to innovate and modify their practices to meet the dual demands of work and life for their employees.
A comprehensive paid parental leave policy is a key driver of employee retention and satisfaction. To be a leader in paid leave, businesses should offer at least 12 weeks of fully paid leave with flexible usage options, including intermittent leave or the ability to split time as needed. Research shows that having at least 16 weeks of paid parental leave has a significant positive impact on a mother’s health and employer recommendations from international advisory organizations like UNICEF call for 18 weeks or more.
Best practices suggest that leave should ideally be available from day one of employment, ensuring immediate access to crucial support. Additionally, businesses should implement a structured return-to-work transition plan. Whenever possible, these plans should be discussed before the employee goes on leave so they are aware and prepared. Flexibility, communication and access to both HR and their supervisors are vital to the success of these programs. These measures not only support new parents but also promote gender equity in the workplace by reducing the “motherhood penalty” that disproportionately affects women’s career advancement.
Paid family/caregiving and medical leave policies should also be strengthened to prioritize employee health and well-being. Expanding the definition of family to include siblings, grandparents, in-laws and even non-familial close relationships better reflects the reality of today’s families and ensures that employees can take time off to care for loved ones without restrictions. Best practices recommend offering full wage replacement and minimal documentation requirements to ease the process for employees. Furthermore, allowing employees to take intermittent family/caregiving and medical leave for their family member’s chronic health needs without requiring supervisor approval helps create a workplace culture that values employees over productivity at any cost.
Paid sick leave should include offering an adequate number of sick days off to ensure employees can recover without financial strain. Since requiring employees to find work coverage replacements or show medical documentation as proof of illness can be a barrier for employees – as well as burdensome for health care providers – limiting or eliminating such policies can also curtail employee stress during a difficult period and foster a supportive work environment.
While unlimited paid time off (PTO) may seem attractive, it may sometimes lead to confusion and lower utilization rates if not implemented thoughtfully. Companies should clearly define how employees can use unlimited PTO, ensuring it covers a variety of needs such as mental health days, personal time and caregiving responsibilities. Without explicit guidelines, employees may hesitate to take time off, fearing workplace repercussions. In addition, all employees should be included in leave benefits, not simply to certain employee populations. By setting clear expectations and cultivating a culture where taking leave is actively encouraged, businesses can foster a healthier, more productive and engaged workforce while reinforcing their commitment to employee well-being.
Paid leave policy consistency for full-time and part-time workers is particularly beneficial when companies seek to attract all types of employees, especially mothers of young children, who are more likely than fathers to shift from full-time to part-time work after the addition of a child at home. Women and disproportionately women of color, make up a majority of people who work part-time, with disabled women especially likely to work part-time. Just like full-time employees, part-time employees also get sick, have family health emergencies and manage medical appointments and may find it even harder than full-time employees to lose pay if they do not have paid leave. As “caregiver” becomes the fastest growing workplace identity, offering policy consistency for all workers helps address gender and racial disparities in the workforce. Additionally, offering a rollover or carryover option for unused leave can further enhance part-time employee satisfaction and retention.
Finally, businesses looking to improve their paid leave policies must prioritize transparency, accessibility and inclusivity to maximize their impact on employee well-being and workplace equity. Two-thirds of workers believe their companies do not effectively communicate or promote their benefit packages, leading to underutilization.
Simply offering leave is not enough – companies must ensure employees fully understand and can easily access these benefits. Three in 10 workers who previously took leave for parental, family or medical reasons report it being difficult to learn about their company’s leave benefits. This research also shows that lower income workers face the most difficulty in understanding their company’s family and medical leave policies and receive less support from their colleagues when taking leave.
Increasing transparency and enhancing communications of paid family and medical leave offerings creates equitable access for diverse talent. Clear, plain-language communication through employee handbooks, internal communications and direct communication through formal and informal meetings is essential. Moreover, providing informational resources in the range of languages spoken in the workplace fosters inclusivity and ensures that all employees, regardless of background, can utilize their benefits effectively.
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