Definition: Unpaid leave is time off that an employer approves but does not pay for. It may be required by law, such as job-protected leave under the Family and Medical Leave Act, required as a disability accommodation, or offered voluntarily under company policy after paid time off runs out.
With EZTime time-off requests, employees ask for PTO from their phone and managers approve it in one place.
For hourly employees, unpaid leave is simple on the pay side: no hours worked, no wages for that time. The complexity lies elsewhere: whether the employee has a right to the leave, whether the job is protected, whether benefits continue, and whether the employer can require paid leave to be used first. Those answers depend on which rule applies.
| Source of leave | Is it required? | Key points |
|---|---|---|
| FMLA | Yes, for eligible employees of covered employers | Up to 12 workweeks of job-protected, unpaid leave in a 12-month period for qualifying reasons; group health coverage continues |
| ADA reasonable accommodation | May be, case by case | Employers must consider unpaid leave as an accommodation, even after other leave is used up, unless it causes undue hardship |
| State or local law | Depends on location | May add rights beyond federal law; check your state |
| Company policy | Voluntary | Personal leave, sabbaticals, or extra time after PTO; must be applied consistently |
FMLA. The Department of Labor's FMLA fact sheet describes FMLA leave as "job-protected, unpaid leave." Private employers with 50 or more employees in 20 or more workweeks are covered. Employees are eligible after at least 12 months with the employer and at least 1,250 hours of service in the 12 months before leave starts, at a site with at least 50 employees within 75 miles. Eligible employees may take up to 12 workweeks of leave in a 12-month period for qualifying reasons, or up to 26 workweeks for military caregiver leave. The fact sheet also says employers may require employees to use paid leave during FMLA leave if the reason is covered by the employer's paid leave policy.
ADA. The EEOC's guidance on employer-provided leave and the ADA says an employer must consider providing unpaid leave to an employee with a disability as a reasonable accommodation if needed, even when the employer offers no leave benefit or the employee has used up available leave, unless it would cause undue hardship. It adds that maximum-leave policies may need to be modified as an accommodation, and that complying with the FMLA does not by itself satisfy ADA obligations.
Exempt employees. Unpaid leave is trickier for salaried exempt staff because of the salary basis rule. The DOL's Fact Sheet #17G lists permitted deductions, including when an employee is absent for one or more full days for personal reasons other than sickness or disability, and full-day absences for sickness under a bona fide plan. It also says the employer does not need to pay the full salary in weeks in which an exempt employee takes unpaid FMLA leave. The permitted deductions in the fact sheet refer to full days; partial-day deductions for personal reasons are not listed.
A hypothetical exempt office manager earns a $1,000 weekly salary and normally works a five-day week. She takes one full day off for a personal matter after using all of her PTO, and the employer's written policy prorates salary by workday.
If she had instead left three hours early for the same reason, the fact sheet's list of full-day deductions would not cover a partial-day deduction. For hourly employees, the calculation is simply the hours not worked.
A written policy helps managers make consistent decisions and gives employees clear expectations. Most policies for hourly teams cover:
The EEOC's guidance says employees with disabilities must be given access to leave on the same basis as other similarly situated employees. A clear written policy, applied the same way to everyone, supports that. Review the policy whenever you open a location in a new state, since state and local leave rules vary.
EZTime's PTO and absence management lets employees request time off and managers approve it, so you have one record of paid and unpaid leave alongside hours from the GPS mobile time clock, tablet kiosk, NFC tags, or biometric clocks. When someone is out, AI shift scheduling, shift templates, and approved shift swaps help fill the gap. Digital HR forms collect leave paperwork, and payroll-ready Excel and PDF exports go to any payroll software (EZTime does not run payroll). Plans start from $2 per employee per month with a 14-day trial. See the attendance clock and pricing.
This is general information, not legal advice.
Not in every case. Covered employers must provide FMLA leave to eligible employees, and the ADA may require unpaid leave as a reasonable accommodation. State and local laws may add requirements. Beyond that, unpaid leave is a policy choice.
Under the FMLA, the DOL says employers may require employees to use paid leave during FMLA leave if the reason is covered by the employer’s paid leave policy. For non-FMLA leave, follow your written policy and any state law.
DOL Fact Sheet #17G permits deductions for absences of one or more full days for personal reasons, and full salary need not be paid in weeks of unpaid FMLA leave. Partial-day personal deductions are not on the list.
During FMLA leave, employers must continue group health coverage on the same terms as if the employee had not taken leave. For other unpaid leave, it depends on your plan and policy.