This guide explains how leaves of absence (LOA) work for employees under your Professional Employer Organization (PEO) agreement with Deel, and who's responsible for what.
As your PEO, Deel supports specific parts of the process, but your HR team owns the leave itself - from the employee's first request through their return to work. Deel doesn't administer the LOA process on your behalf; your team manages the interactive process, documentation, and leave decisions directly with the employee.
In this Section
Who handles what: Deel's role vs. your role
How Short-Term Disability (STD) and Long-Term Disability (LTD) work with LOA
What your HR team does when an employee requests a leave
How to reach your PEO HR consultant (HRBP) directly
Who handles what: Deel's role vs. your role
[ACCORDION] What Deel manages as your PEO
- System records: We update the leave dates in the system so payroll and HR records stay accurate.
- Payroll coordination: We notify payroll of every leave. For unpaid leave, that's an internal heads-up so payroll knows not to process pay. For paid leave with a top-up, we hand it off to payroll directly so the top-up amount gets processed correctly.
- Benefit enrollment data: We keep the employee's benefit enrollment and plan data current in the system throughout the leave. Coordinating collection of the employee's premium share during an unpaid leave is handled directly between your team and the employee.
- New York PFML filing: For employees on New York PFML, we submit the required documentation to our third-party carrier, Shelterpoint, on the employee's behalf.
- HR best practice guidance: Your assigned PEO HR Consultant (HRBP) is available to answer questions and guide your team through the process.
[ACCORDION] What your HR team manages
- Engaging directly with the employee in the interactive process
- Collecting and reviewing supporting documentation and medical certifications
- Determining leave eligibility and approval in line with your company policy and applicable law
- Communicating leave decisions to the employee
- Coordinating collection of the employee's benefit premium share during any unpaid portion of the leave, if the employee is responsible for it
- Managing the employee's return to work
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Types of leave of absence
[ACCORDION] Medical LOA
A Medical LOA covers employees who can't work due to their own medical condition, illness, injury, or recovery. This includes recovery from surgery, serious health conditions, and medical treatments that prevent someone from doing their job.
[ACCORDION] Family care LOA
A Family Care LOA covers employees who need to care for a family member - a spouse, child, parent, or parent-in-law - with a serious health condition or medical need. Employees who qualify for state or federal programs can use this leave to provide care without losing their job.
[ACCORDION] Personal/general LOA
A Personal LOA covers non-medical reasons, such as personal hardship, emergencies, or other circumstances that require time away from work. Your company policy determines the specific reasons and duration allowed.
[ACCORDION] Other LOAs (if applicable)
Depending on your company policy, you may also offer:
- Military leave - for employees called to active duty or reserve service
- Bereavement leave - for the death of a family member, to grieve and handle arrangements
- Sabbatical or extended personal leave - for extended time off for personal development or other life circumstances
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Paid vs. unpaid leave
Your company decides whether each leave is paid or unpaid.
- Unpaid leave: The employee doesn't receive their regular salary during the leave.
- Paid leave: The employee receives income replacement while on leave. Depending on your policy and the leave type, this could be full salary replacement, a partial stipend or benefit amount, or a combination - such as state disability insurance plus a company contribution.
Note: If a paid leave benefit doesn't fully cover an employee's normal salary, your company can pay the difference to maintain their full income. For example, if state disability insurance covers 60% of salary, a top-up would cover the remaining 40%.
State-specific paid leave programs
Many states offer mandatory paid leave programs that provide wage replacement, separate from job protection. Employees typically apply for these directly with the state, with one exception: New York.
| State | Program | How it's handled |
|---|---|---|
| California CA | Paid Family Leave (PFL) | Employee applies directly with the state |
| California CA | State Disability Insurance (SDI) | Employee applies directly with the state |
| Connecticut CT | Connecticut Paid Leave | Employee applies directly with the state |
| Hawaii HI | Temporary Disability Insurance (TDI) | No online portal — the employee gets Form TDI-45 from you, submitted to the employer's TDI insurance carrier (details) |
| Massachusetts MA | Paid Family and Medical Leave | Employee applies directly with the state |
| Maryland MD* | Maryland Paid Leave | Employee applies directly with the state |
| Minnesota MN | Paid Family and Medical Leave | Employee applies directly with the state |
| New Jersey NJ | Family Leave Insurance (NJFLI) | Employee applies directly with the state |
| Nevada NV | Nevada Paid Leave | Not state-filed — an employer-administered accrued paid leave bank the employee uses directly through your team, similar to PTO (details) |
| New York NY | Disability Benefits Law (DBL) | Applied for through Shelterpoint (our third-party carrier) using a Deel-provided application - routed through Deel |
| New York NY | Paid Family Leave (PFL) | Applied for through Shelterpoint using a Deel-provided application - routed through Deel |
| Oregon OR | Paid Family and Medical Leave | Employee applies directly with the state |
| Rhode Island RI | Temporary Caregiver Insurance (TCI) | Employee applies directly with the state |
| Rhode Island RI | Temporary Disability Insurance (TDI) | Employee applies directly with the state |
| Vermont VT | Paid Family Leave | Optional, employer-elected coverage through a private insurer (The Hartford) — only available if your company opted in (details) |
| Washington WA | Family and Medical Leave Insurance | Employee applies directly with the state |
New York PFL and DBL are the only programs that run through Deel. Because they're administered by a third-party carrier (Shelterpoint), send us the required documentation using the Deel-provided application so we can submit it on the employee's behalf.
*Maryland Paid Leave isn't available until January 2027. Payroll deductions begin January 2027, and employees can start taking up to 12 weeks of leave from January 2028.
How Short-Term Disability (STD) and Long-Term Disability (LTD) work with LOA
- Short-Term Disability (STD): Guardian provides STD coverage. If an employee qualifies under your company's plan, it may provide income replacement during a medical leave. Plan details vary by the plan your company selected - if there's no self-service benefit summary available outside open enrollment, your PEO HR Consultant can share it, and your org admin should pass it to the employee if requested.
- Long-Term Disability (LTD): Guardian also provides LTD coverage. If a disability extends beyond STD coverage, an employee may be eligible to transition to LTD benefits. As with STD, your PEO HR Consultant can share the specific benefit summary.
- Coordination with LOA: While an employee is on STD or LTD, your team still owns their leave status and job protection determination. Deel keeps the underlying benefit enrollment data current in the system throughout the leave and can advise on state or federal job protection programs.
What your HR team does when an employee requests a leave
Step 1: Engage in the interactive process
Talk directly with the employee about their leave request - the reason, expected duration, and any accommodation needs. Your PEO HR Consultant (HRBP) can help if you need guidance on HR best practice.
Step 2: Collect documentation
Request and collect any supporting documentation your company's policy requires, such as medical certification or family care documentation. This stays with your team and the employee, with one exception: New York PFML, which goes through our third-party carrier and requires the Deel-provided application.
Step 3: Set up the LOA policy in the system
- Check for an existing policy. Confirm whether your organization already has a time off policy set up for this leave type. If one exists, skip to assigning the employee.
- Create the policy. If none exists, follow How to Create a Custom Time Off Policy for Workers to create one.
- Assign the employee to the policy. Once created, assign the employee with the confirmed leave start date so it's reflected correctly for payroll.
Step 4: Notify Deel
Once the leave is confirmed, let us know the leave type, confirmed start date, anticipated end date, and whether it's paid or unpaid - ideally 2–4 weeks before the leave starts.
Step 5: Deel updates the system and coordinates with payroll
We update the system and notify payroll: an internal heads-up for unpaid leave, or a direct handoff for paid leave with a top-up so the amount processes correctly.
How to reach your PEO HR consultant (HRBP) directly
Step 1: Go to your Overview page and find your point of contact
On your platform Overview page, find the "Your point of contact" section. Select Get in touch on the card showing your PEO HR Consultant's name and title (listed as your PEO HRX Manager).
Step 2: Choose the topic carefully
A window opens asking "What would you like help with?" with a Topic dropdown. The first group of topics - Payroll, Benefits & Retirement, Workers' Compensation, HR Questions (non-PEO), Tax & State Registrations, and Platform & Technical Help - are marked "AI assisted" and route to general support, not your HRBP.
Step 3: Scroll to "HRX PEO manager" and select PEO HR & Compliance
Scroll to "HRX PEO manager" and select PEO HR & Compliance.
Note: Please avoid selecting "Customer Operations Manager" (e.g., Account & Contracts) for LOA or other PEO HR questions.
Important: Selecting any topic other than PEO HR & Compliance under HRX PEO manager - routes your request to general support instead. Ensure to select PEO HR & Compliance as it creates a ticket routed directly to your assigned HRBP, with an 18-hour Service Level Agreement (SLA).
Frequently Asked Questions
[ACCORDION] Does Deel manage the leave of absence process for us?
No. Deel does not administer LOAs on your behalf. Your HR team runs the interactive process and manages documentation, eligibility, and approval directly with the employee. Deel supports specific pieces described above and is available for HR best practice guidance through your assigned PEO HR Consultant.
[ACCORDION] What information does Deel need, and when?
Once the leave is confirmed, send us the leave type, confirmed start date, anticipated end date, and whether it's paid or unpaid. Share this 2–4 weeks before the leave starts whenever possible.
[ACCORDION] Do we need to send medical certifications or other documentation to Deel?
Generally, no. The one exception is New York PFML, which is processed through a third-party carrier and requires documentation submitted through Deel using the Deel-provided application.
[ACCORDION] Who do we contact with questions about the process?
Reach out to your assigned PEO HR Consultant (HRBP) any time you have a question as you work through a leave request.
[ACCORDION] Who decides how the employee's benefit premiums get paid during unpaid leave?
That's a decision and process your team manages directly with the employee. Deel keeps the benefit enrollment data current in the system throughout the leave.
[ACCORDION] How do we get an employee's STD or LTD benefit summary?
Reach out to your PEO HR Consultant, who can share the benefit summary specific to the STD/LTD plan your company selected. There's no self-service version available outside open enrollment, so your org admin should pass a copy to the employee if requested.
[ACCORDION] Does Deel notify payroll for unpaid leave too, or only paid leave?
Both. For unpaid leave, we notify payroll internally so they know not to process pay - no special action is needed on their end. For paid leave with a top-up, it's an external handoff so payroll can process the top-up amount correctly.
[ACCORDION] What's the best way to reach our PEO HR Consultant directly?
Use Get in touch next to their name on your platform Overview, then select PEO HR & Compliance under "HRX PEO manager" in the topic dropdown. See the section above for the full walkthrough.