The United States, with its vast economy, diverse industries, and global leadership in technology, finance, healthcare, and entertainment, remains one of the most attractive destinations for global companies looking to expand. From Silicon Valley startups to Wall Street financial firms, the U.S. offers unmatched opportunities for hiring in USA across sectors. However, entering the American market requires strict adherence to federal, state, and local labor laws.
One of the most important aspects of compliance is understanding the leave policy in USA, which balances federal mandates, state-specific entitlements, and employer-provided benefits. Unlike many countries, the U.S. does not have a universal paid leave law, making compliance more complex for global employers.
This guide provides employers, HR managers, and employees with a detailed understanding of leave entitlements in the United States, including annual leave (paid time off), parental leave, maternity and paternity benefits, sick leave, public holidays, and special leave types.
Table of Contents
- Adoption Leave in USA
- Earned Leave (Annual Leave) in USA
- Maternity Leave in USA
- Parental Leave in USA
- Paternity Leave in USA
- Public Holidays in USA
- Sick Leave Policy in USA
- Casual Leave in USA
- Unpaid Leave in USA
- Other Special Leave Types in USA
- Digital Leave Management in USA with Asanify AI
- FAQs on Leave Policy in USA
Adoption Leave in USA
Adoption leave in the U.S. is designed to support adoptive parents, though entitlements vary by federal law, state regulations, and employer policies.
- Duration: Under the Family and Medical Leave Act (FMLA), adoptive parents are entitled to up to 12 weeks of unpaid leave.
- Payment: Paid adoption leave is not guaranteed at the federal level, but many employers provide it as part of company benefits. Some states (e.g., California, New York, New Jersey) mandate partial paid family leave for adoption.
- Multiple adoptions: Entitlement applies per adoption, though employers may extend additional leave.
- Employer responsibility: Employers must grant this leave without discrimination. Employees must submit legal adoption documentation and notify employers in advance, enabling accurate payroll processing and insurance claims.
Earned Leave (Annual Leave) in USA
The U.S. does not mandate statutory paid annual leave at the federal level. Instead, paid time off (PTO) is employer-driven.
- On average, full-time employees receive 10–20 days of paid vacation per year, depending on tenure.
- Some states encourage PTO but do not mandate specific days.
- Part-time employees may receive prorated PTO, depending on company policy.
- Federal contractors often follow PTO rules under government contracts.
- Collective bargaining agreements may enhance PTO entitlements.
For employers, accurate payroll processing is critical to track PTO accruals and payouts upon termination or resignation.
Suggested Read: Employer of Record USA: A Detailed 2025 Guide
Maternity Leave in USA
Maternity leave provisions in the U.S. are governed mainly by the FMLA and supplemented by state-level laws.
| Feature | Details |
| Maternity Leave | Up to 12 weeks of unpaid leave under FMLA |
| Eligibility | Applies to employees in companies with 50+ workers who have completed 12 months of service |
| State Benefits | Some states (e.g., California, New York, Massachusetts) offer partial paid maternity leave |
| Notice Requirement | Employees must give 30 days’ advance notice when foreseeable |
| Financial Assistance | Funded through state-run insurance programs where applicable |
Employers must protect job security during maternity leave. Employer of Record Services USA help global companies remain compliant with federal and state maternity leave rules.
Parental Leave in USA
Parental leave varies significantly across states and employers.
| Type of Parental Leave | Duration | Details |
| FMLA Leave | Up to 12 weeks unpaid | Covers birth, adoption, or foster care |
| State Paid Leave | 4–12 weeks | States like California, New Jersey, Rhode Island, and New York provide partial paid leave |
| Employer Policies | Varies | Many companies offer 6–16 weeks of paid parental leave to remain competitive |
Global Contractor Management solutions often help multinational companies standardize parental leave benefits across their U.S. operations.
Paternity Leave in USA
Paternity leave is not federally mandated but is increasingly recognized as essential.
| Feature | Details |
| Duration | Covered under FMLA (up to 12 weeks unpaid) |
| Payment | Some states mandate partial pay, while many employers voluntarily offer 2–8 weeks of paid leave |
| Flexibility | Leave can be taken in segments or combined with vacation days |
Employers offering competitive paternity leave attract and retain top talent in the U.S. workforce.
Public Holidays in USA
The U.S. has 11 federal public holidays, though private employers are not legally required to provide paid time off for them. Most companies, however, do observe them.
| Holiday | Date |
| New Year’s Day | 1 January |
| Martin Luther King Jr. Day | 20 January (2025) |
| Presidents’ Day | 17 February (2025) |
| Memorial Day | 26 May (2025) |
| Juneteenth National Independence Day | 19 June |
| Independence Day | 4 July |
| Labor Day | 1 September (2025) |
| Columbus Day | 13 October (2025) |
| Veterans Day | 11 November |
| Thanksgiving Day | 27 November (2025) |
| Christmas Day | 25 December |
If a holiday falls on a weekend, it is typically observed on the nearest weekday. Employers must update payroll processing to reflect holiday pay accurately.
Sick Leave Policy in USA
Paid sick leave is not mandated federally but is legislated at the state or city level.
| Category | Entitlement |
| Federal | No nationwide mandate |
| State Mandates | States like California, New York, and Washington require 5–10 days of paid sick leave annually |
| Employer Policies | Many employers offer 7–14 days as part of PTO |
Employees must often provide medical certification after multiple days of absence. EOR in USA helps global companies navigate varying sick leave regulations across states.
Casual Leave in USA
Casual leave is not a statutory category in the U.S. Instead, it is covered under PTO or unpaid leave policies.
- Employees may request time off for family emergencies or personal reasons.
- Employers typically manage this through flexible PTO programs.
- Approval remains at the employer’s discretion.
Unpaid Leave in USA
Unpaid leave is governed by federal and state laws:
- FMLA: Provides up to 12 weeks of unpaid leave for family and medical reasons.
- Military Leave: The Uniformed Services Employment and Reemployment Rights Act (USERRA) grants unpaid leave for military duty.
- Personal Leave: Employers may grant additional unpaid leave at their discretion.
Employers must manage documentation carefully to ensure compliance.
Other Special Leave Types in USA
The U.S. also provides several other leave entitlements under federal and state laws:
- Jury Duty Leave: Employers must allow time off for jury service; some states require it to be paid.
- Voting Leave: Many states provide paid or unpaid leave for voting.
- Bereavement Leave: Not federally mandated, but many employers provide 3–5 days.
- Military Leave: Employees called for service are protected under USERRA.
- Educational Leave: Some employers provide leave for training or higher education.
Suggested Read: Labour Laws in the USA: A Complete 2025 Guide
Digital Leave Management in USA with Asanify AI
Managing leave in the U.S. is complex due to the lack of a uniform national framework and variations across states. Manual processes increase compliance risks and payroll errors. Asanify AI simplifies this with automation tailored for U.S. and global companies.
Here’s how Asanify supports employers:
- Real-time PTO tracking across federal, state, and company policies.
- Slack and mobile-based approvals, streamlining workflows.
- Integrated payroll processing to handle complex PTO accruals, payouts, and sick leave compliance.
- Audit-ready reports aligned with FMLA, state laws, and employer policies.
- Policy automation for diverse state-specific entitlements, reducing errors.
By partnering with EOR in USA through Asanify, global companies remain compliant with federal and state laws while offering employees a seamless experience. Employer of Record Services USA also streamline Global Contractor Management, ensuring consistency across distributed teams.
FAQs
No, there is no federal mandate. PTO is provided at the employer’s discretion.
Up to 12 weeks of unpaid leave under FMLA; some states mandate partial paid leave.
Not federally, but states and employers often provide 2–8 weeks paid.
Not required by law, but most employers provide paid holidays.
Only in certain states and cities; otherwise, it depends on employer policy.
Yes, under FMLA, USERRA, or employer-approved arrangements.
By using Employer of Record Services USA like Asanify, which manages payroll processing, multi-state compliance, and global contractor management.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
