Specialized SaaS for FMLA and complex employee leave management.
This post highlights a significant pain point for HR professionals and businesses: managing complex employee leave situations, specifically FMLA (Family and Medical Leave Act) and related state-specific laws (like California's, as implied). The user's struggle with an employee exhausting FMLA and sick time, and the need for an unpaid extension, demonstrates the intricate nature of compliance and tracking. Many generic HRIS systems offer basic leave management, but often lack the depth, automation, and multi-state compliance nuances required for complex cases. This opens a niche for a specialized SaaS.
Potential Opportunities:
- Automated FMLA & Leave Compliance: A SaaS that automates eligibility checks, calculates leave balances, tracks intermittent leave, and ensures compliance with federal and state-specific FMLA (e.g., CFRA in California).
- Workflow & Documentation: Streamlined workflows for leave requests, approvals, and denials, with automated generation of required FMLA notices and certification forms.
- Complex Case Management: Features designed for unusual scenarios, like exhausted leave, overlapping leave types, or extended unpaid leaves, providing clear guidance and audit trails.
- Integration: API integrations with common HRIS/payroll systems to synchronize employee data and leave information.
Product Form: A web-based SaaS application specifically for FMLA and complex leave management. It would provide a user-friendly dashboard for HR, employee portals for leave requests, and robust reporting for compliance audits. Pricing could be per employee per month, or tiered based on the number of employees/features, making it accessible to SMBs and mid-market companies who often lack in-house legal expertise.
Expected Revenue: Significant. HR compliance is critical and complex, leading businesses to seek specialized solutions to mitigate legal risks. A niche SaaS focusing on FMLA could command a premium. For a solution that genuinely reduces administrative burden and compliance risk, an MRR of $10-$50 per employee per year (or higher for complex features) is plausible. Serving even a few hundred companies could lead to an MRR of tens of thousands to potentially hundreds of thousands of dollars, as the market for specialized HR tech is growing.
Origin Reddit Post
r/humanresources
FMLA [CA]
Posted by u/Warm-Celery-4117•07/29/2025
Hi everyone, I have a question regarding one of our employees who has exhausted her 12 weeks of FMLA and her sick time. I’ve granted an additional week extension (unpaid but her supervisor do
Top Comments
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/babybambam
Might be. Is the business still paying for their benefits?
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/babybambam
Might be. Is the business still paying for their benefits?
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/babybambam
Engage an HR attorney.
u/[deleted]
[deleted]
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/babybambam
Might be. Is the business still paying for their benefits?
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/babybambam
Might be. Is the business still paying for their benefits?
u/[deleted]
[deleted]
u/babybambam
Engage an HR attorney.
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/nervousnelly101
Just wanted to say, great response!
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/nervousnelly101
Just wanted to say, great response!
u/babybambam
Engage an HR attorney.
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/nervousnelly101
Just wanted to say, great response!
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/[deleted]
[deleted]
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/nervousnelly101
Just wanted to say, great response!
u/[deleted]
[deleted]
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/babybambam
Might be. Is the business still paying for their benefits?
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/babybambam
Engage an HR attorney.
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/Warm-Celery-4117
Every time we’ve spoken she’s confident she’ll return by the date listed by her physician (I think she may be bored at home and genuinely wants to return to work) and each time her medical le
u/nervousnelly101
Just wanted to say, great response!
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi
u/[deleted]
[deleted]
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/nervousnelly101
Just wanted to say, great response!
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/babybambam
Engage an HR attorney.
u/babybambam
Might be. Is the business still paying for their benefits?
u/medusa3339
If you are located in California, is this employee not eligible for statutory benefits like California SDI?
u/luckystars143
Uh, not this. No conversation is necessary. As long as they continue providing medical notes to be off work, they’re off under an ADA leave.
An “undue hardship” can’t be determined until t
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/Warm-Celery-4117
Thank you for the clarity and the newsletter suggestion!
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/Warm-Celery-4117
Yea my worry is that because we’re a non-profit and have lost a significant amount of funding, we’re between a rock and a hard place financially, especially because as RIFs have been announce
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Jcarlough
Leave *may* be a reasonable accommodation.
It doesn’t have to be.
u/Warm-Replacement-724
Love this answer. All key points listed.
Although the situation is gray area, it appears your company has done what is required by law.
FMLA taken, additional leave offered (unpaid), super
u/MsMarigold33
For us, if the employee provides documentation and can show they are currently approved under California SDI we treat it like FMLA for 26 weeks. Then if they need to transition into LTD, we o
u/[deleted]
[deleted]
u/Thin_Rip8995
you’re in the gray zone now—past FMLA protection, but still deep in ADA and optics territory
first step: *interactive process*
you’re legally obligated to assess whether extended leave is
u/babybambam
Engage an HR attorney.
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Legitimate-Sun-4581
Also see the word “likely”. A continuous leave is a likely, possible, plausible accommodation. At the very least, approve for 4 weeks (assuming the employee actually goes through the whole pr
u/Warm-Celery-4117
Yes, she sends us a check for the employee portion which amounts to about $150 monthly.
u/Legitimate-Sun-4581
I’m also at a non-profit.
Does the employee have a disability documented by their healthcare provider? Yes? You need to engage in the interactive process. What’s the reasonable accommodatio
u/Legitimate-Sun-4581
I advise you look up ADA accommodations. You will likely find that continuous leave/additional time is a reasonable accommodation to a disability for this employee.
We extend ADA continuous
u/Jcarlough
I’d have a clear conversation with the employee and ask when she believes she believes she may actually be able to return.
If she is unable to provide an answer, you can give her a little bi