Using a Full-Service Third Party Administrator to Manage Paid Family and Medical Leaves of Absence

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There are a variety of state-specific paid family medical leave laws in the U.S. and using a full-service third party leave administrator to help manage employee leaves across multiple jurisdictions from start to finish, including the claims process, can help.

Managing employee leaves of absence in the United States is complicated. Because no federally mandated paid leave exists, it’s left to the states and different localities to legislate paid family medical leave laws and other protections. So far 12 states and one city have passed such laws, and more states are following. The result is a regulatory patchwork that’s increasingly complex for employers and their valued employees to navigate in a compliant way.

To provide some much-needed guidance, Sparrow is pleased to partner with Littler on a white paper and case study summarizing the general nature of family and medical leave laws in the U.S., including where and how they overlap (if at all), and the important role a full-service third party leave administrator can play to help maximize compliance, improve employee experience, and save time and money.

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Paper Excerpt

Outsourcing leave management to a full-service third party leave administrator can be an effective strategy for employers to improve both multi-jurisdictional compliance and cost-savings. Such administrators manage employee leaves from beginning to end, including relevant claims processes, which enables employees to maximize any wage replacement owed and employers to stop inadvertently overpaying them. Use of a full-service leave administrator can also reduce an employer’s administrative workload and help them demonstrate greater employee appreciation, yielding potentially higher retention. The net result is that employees and employers alike may have a more positive and productive leave experience.

This paper will provide a general overview of leave laws in the United States, with a special focus on state paid family and medical leave laws given the operational complexity such laws introduce for employers. The authors will also discuss reported trends in employer leave benefits and conclude with how full-service third party administrators can be a valuable resource.

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