{"id":14268,"date":"2026-05-29T16:48:38","date_gmt":"2026-05-29T21:48:38","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&#038;p=14268"},"modified":"2026-05-29T16:48:39","modified_gmt":"2026-05-29T21:48:39","slug":"paid-leave-2026-three-challenges-for-hr","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employee-leaves\/paid-leave-2026-three-challenges-for-hr\/","title":{"rendered":"Paid leave 2026: Three challenges for HR"},"content":{"rendered":"\n<div class=\"wp-block-group alignwide has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-b5fc8583 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-7fc3d43a wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-8e1436f2 wp-block-group-is-layout-flex\" style=\"margin-top:0;margin-bottom:0\">\n<p class=\"\">by the<strong> Brightmine Editorial Team<\/strong><\/p>\n<\/div>\n\n\n\n<p class=\"\">Managing paid leave grows more complex as states continue to pass more laws every year, particularly for employers operating across multiple states. Two-thirds of respondents are multistate employers and half use separate leave allocations, at least in part to address compliance-based requirements such as paid sick leave mandates.<\/p>\n\n\n\n<p class=\"\">The survey also found that how PTO is structured, administered and communicated may create misalignment with organizational strategic intentions. In addition, it reveals work culture issues that may deter employees from using their leave.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1meeting-the-compliance-challenge\">Meeting the compliance challenge<\/h2>\n\n\n\n<p class=\"\">Employers frequently intend PTO to serve as a competitive benefit (42%), a vehicle for supporting employee well-being and satisfaction (36%) and to comply with state or local paid leave laws (20%). However, using a single PTO bank to serve all these purposes can quickly lead to compliance problems.<\/p>\n\n\n\n<p class=\"\">Paid sick leave statutes often limit an employer&#8217;s ability to set waiting periods, accrual caps or rollover restrictions. The survey analysis points out this incompatibility, noting that when PTO is offered to comply with a legal requirement, the law may limit the employer&#8217;s ability to cap rollover hours.<\/p>\n\n\n\n<p class=\"\">For multistate employers, this may create a compliance challenge: A well-intentioned &#8220;one-size-fits-most&#8221; PTO policy may inadvertently violate state or local requirements on accrual, usage or rollover. Waiting periods, which 41% of employers report using, present a risk if they are applied to time that must be available immediately by law. For example, under Colorado and Minnesota paid sick leave laws an employee may use accrued paid leave as it accrues.<\/p>\n\n\n\n<p class=\"\">It&#8217;s good practice to regularly review paid leave laws by jurisdiction and identify locations where the rules on accrual, carryover or usage limit employer discretion. Consider separating compliance-driven leave from discretionary PTO to avoid unlawful waiting periods, rollover caps or forfeiture.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2aligning-structure-and-purpose\">Aligning structure and purpose<\/h2>\n\n\n\n<p class=\"\">The survey makes clear that employers favor defined leave structures, with PTO banks or separate allocations by leave type (such as vacation and sick leave) accounting for 88% of leave arrangements combined. Only 18% of employers offer unlimited PTO, primarily to a limited group of senior or exempt employees. Just one-third of employers offering unlimited PTO provide it to all employees.<\/p>\n\n\n\n<p class=\"\">But the PTO structure that is used more often reflects administrative convenience, rather than strategic focus. Accrual-based systems (used by 69% of respondents) and capped carryover policies (used by a large majority of the 80% that allow rollover) help manage financial liability. And while these systems help provide stability in scheduling, they may appear inflexible to employees unless clearly explained.<\/p>\n\n\n\n<p class=\"\">Another area where PTO practices may not align with organizational strategy is in communicating the employee value proposition. While 64% of employers view PTO as critical to attraction and retention, only one-third discuss it early in the interview process, and one in five respondents report that they rarely discuss paid leave during the interview process at all.<\/p>\n\n\n\n<p class=\"\">Employers can address these challenges by aligning PTO design with organizational strategy &#8211; matching accrual, carryover and eligibility rules to workforce planning goals (such as retention, adequate coverage and staffing for operations and reducing burnout). In addition, discuss PTO early and consistently during the recruitment and onboarding process using standardized communications to maximize the impact of offering competitive leave benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3increasing-utilization\">Increasing utilization<\/h2>\n\n\n\n<p class=\"\">A concerning finding from the survey is that the biggest PTO challenge is not administration, but employees underusing their benefits. While HR teams report that PTO management requires relatively little time, 34% said employees worry about their workload or the optics of taking leave. Another 6% believe employees actively hesitate to use the time available to them.<\/p>\n\n\n\n<p class=\"\">This may indicate a work culture problem rather than flaws in policy structure. Even when employees know they can use paid leave, they may be discouraged from taking it due to implicit signals (e.g., workload, meeting volume, staffing levels or manager behavior). Over time, underutilization degrades the value of PTO towards employee wellbeing and retention, even when the policy benchmarks well against the market.<\/p>\n\n\n\n<p class=\"\">Meeting this critical challenge requires moving beyond policy and structures and into work design and leadership behavior. To help determine the extent of the problem, gather data &nbsp;(perhaps in HRIS reports, if available) on where PTO consistently goes unused. Train managers to support time off without signaling disapproval or inconvenience.<\/p>\n\n\n\n<p class=\"\">Additionally, people leaders can help set an example by taking their full PTO and visibly disconnecting from the office. Communications should regularly reinforce the message that taking time off is expected and encouraged. This message can be reinforced by building leave coverage into the work design, using cross-training, handoff templates and advance planning to reduce workload and &#8220;optics&#8221; concerns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"addressing-the-bottom-line\">Addressing the bottom line<\/h2>\n\n\n\n<p class=\"\">The Paid Leave 2026 Survey Report confirms that most employers already offer competitive PTO benefits on paper. The harder work lies in structuring leave programs that meet multistate compliance requirements, clearly communicate the value to employees and encourage PTO use through day-to-day operational support. When employers align compliance, PTO design and workplace culture, paid leave shifts from a static benefit to a meaningful driver of engagement and retention.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column lnrs-hide-block-on-mobile is-layout-flow wp-block-column-is-layout-flow\" style=\"border-left-color:var(--wp--preset--color--secondary-gray);border-left-width:2px;padding-left:10px;flex-basis:30%\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained wp-container-1 is-position-sticky\">\n<div class=\"wp-block-group has-bleach-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-a36fa716 wp-block-group-is-layout-constrained\" style=\"border-radius:14px;padding-top:10px;padding-right:15px;padding-bottom:15px;padding-left:15px\">\n<h3 class=\"wp-block-heading\">Get ahead of HR compliance<\/h3>\n\n\n\n<p class=\"\">Navigating today\u2019s complex HR compliance landscape is challenging.<\/p>\n\n\n\n<p class=\"\">Get ahead with Brightmine. Access HR resources and automation tools managed by seasoned human HR experts.<\/p>\n\n\n\n<p style=\"font-size:14px\" class=\"\"><a href=\"\/us\/products\/hr-compliance-center\/#lexisnexis\">Proudly partnered with LexisNexis<sup>\u00ae<\/sup><\/a><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-ecba6b92 wp-block-group-is-layout-flex\" style=\"margin-top:0;margin-bottom:0\">\n<figure class=\"wp-block-image alignleft size-large is-resized\" style=\"margin-top:10px;margin-bottom:10px\"><img loading=\"lazy\" decoding=\"async\" width=\"166\" height=\"44\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2025\/07\/16090337\/LexisNexis-logo.svg\" alt=\"\" class=\"wp-image-9646\" style=\"width:auto;height:35px\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/us\/quote\/?intcmp=cta|blog|quote|request-a-quote\" style=\"border-radius:25px\">Request a quote<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-top:var(--wp--preset--spacing--40);margin-bottom:var(--wp--preset--spacing--40)\">\n<p class=\"\"><a href=\"#top\">Go back to the top<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-fcdab8bb wp-block-group-is-layout-constrained\" style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading has-large-font-size\">About the author<\/h3>\n\n\n\n<div class=\"wp-block-columns has-primary-gray-color has-text-color has-link-color wp-elements-b942f8f6b41a26944c386d39f1d67776 is-layout-flex wp-container-core-columns-is-layout-7fc3d43a wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"padding-right:10px;padding-left:10px;flex-basis:100px\">\n<figure class=\"wp-block-image size-full is-resized has-custom-border is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"128\" height=\"128\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2024\/03\/12085517\/Brightmine_Favicon_128px.png\" alt=\"\" class=\"wp-image-681\" style=\"border-radius:25px;object-fit:cover;width:100px;height:100px\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"padding-right:10px;padding-left:10px\">\n<p class=\"\"><strong>Brightmine<\/strong><\/p>\n\n\n\n<p class=\"\">With more than 10,000 customers, Brightmine is a leading global provider of people data, analytics and insight \u2013 empowering HR leaders to deliver brighter business outcomes.<\/p>\n\n\n\n<p class=\"\">For more than two decades, Brightmine, formerly XpertHR, has continued to help HR leaders confidently navigate the evolving world of work through our unique combination of critical workforce data, AI-enabled technology, and trusted HR expertise.<\/p>\n\n\n\n<p class=\"\">Brightmine is a division of LexisNexis Data Services within RELX\u00ae, a global provider of information-based analytics and decision tools. RELX serves customers in 180+ countries with 35,000+ employees. Ticker: London: REL; Amsterdam: REN; New York: RELX.<\/p>\n\n\n\n<p class=\"\">Follow Brightmine on <a href=\"https:\/\/www.linkedin.com\/company\/brightmine\/\" target=\"_blank\" rel=\"noreferrer noopener\">LinkedIn<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-efae2095 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading\">You may also be interested in&#8230;<\/h2>\n\n\n<section id=\"resources-search-filter\" class=\"wp-elements-0484fa35224e98f80ca9838dbde355cd wp-block-brightmine-resources-filter has-text-color has-primary-black-color has-background has-primary-white-background-color\">\n\n\n<div class=\"ajax-filter\">\n<div class=\"lnrs-resources-search-filter   \">\n\t\t<div class=\"search_terms_bottom\">\n\t\t\t<div class=\"bottom_left\">\n\t\t\t<div class=\"search_terms_result_count\">\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"bottom_right\">\n\t\t\t\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n<\/div>\n\n\t<div class=\"loader-container\">\n\t\t<span class=\"loader\" style=\"display: none;\"><\/span>\n\t<\/div>\n\n\n\t<div class=\"lnrs-resource-filter-widget__container\">\n\n\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: #E9E7E4\">\n\t\t\t\t\t<a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employee-leaves\/paid-leave-2026-three-challenges-for-hr\/\"><div class=\"lnrs-resource-hub-widget__resource_image\" style=\"background-image: url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2026\/05\/29040302\/person-with-hand-on-forehead-working-at-desk.webp);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Commentary and Insights<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employee-leaves\/paid-leave-2026-three-challenges-for-hr\/\">Paid leave 2026: Three challenges for HR<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #000000\">Managing paid leave grows more complex every year \u2014 especially for multistate employers. New survey data reveals compliance &#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: #E9E7E4\">\n\t\t\t\t\t<a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employee-leaves\/domestic-violence-leave-laws-by-state-50-state-chart\/\"><div class=\"lnrs-resource-hub-widget__resource_image\" style=\"background-image: url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2025\/03\/11165628\/HR-manager-speaking-to-employee.webp);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Charts<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employee-leaves\/domestic-violence-leave-laws-by-state-50-state-chart\/\">Domestic violence leave laws by state | 50-state chart<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #000000\">This chart provides a high-level overview of current and enacted domestic violence leave laws in each state.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: #E9E7E4\">\n\t\t\t\t\t<a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/policies-handbooks\/employee-handbook-policies-by-state\/\"><div class=\"lnrs-resource-hub-widget__resource_image\" style=\"background-image: url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/3\/2026\/01\/22223521\/Office-worker-working-on-cafe-1200x627-1.webp);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Charts<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/policies-handbooks\/employee-handbook-policies-by-state\/\">Required employee handbook policies by state and municipality<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #000000\">Ensure compliance with state\u2011required employee handbook policies, including leave, harassment prevention, and workplace accommodations.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\n<\/div>\n<\/section><\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-bbb7e64f 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You can opt-out via the unsubscribe link in the communications that you receive or by contacting us.\n<\/p><input type=\"hidden\" name=\"client_id\" class=\"client_id\" \/><input type=\"text\" class=\"elq-itemhp-tel5\" name=\"Telephone5\" value=\"\" style=\"width:100%;\" autocomplete=\"2S0OI3\">\n\t\t<input type=\"text\" class=\"elq-itemhp-tel6\" name=\"Telephone6\" value=\"\" style=\"width:100%;\" autocomplete=\"DduwX4\">\n\t\t<input type=\"text\" class=\"elq-itemhp-tel7\" name=\"Telephone7\" value=\"\" style=\"width:100%;\" autocomplete=\"8ihsaF\"><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Managing paid leave grows more complex every year \u2014 especially for multistate employers. New survey data reveals compliance gaps, structural misalignment, and a work culture where employees hesitate to use the time they&#8217;ve earned.<\/p>\n","protected":false},"author":65,"featured_media":14238,"comment_status":"closed","ping_status":"closed","template":"wp-custom-template-new-resources","categories":[56],"tags":[],"topic":[68,25],"class_list":["post-14268","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-c-and-i","topic-employee-leaves","topic-hr-compliance"],"_lnrs_read_more":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Paid leave 2026: Three challenges for HR | Brightmine<\/title>\n<meta name=\"description\" content=\"New survey data reveals three paid leave challenges facing HR in 2026: multistate compliance, PTO structure gaps, and low employee utilization\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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