Employees who are eligible for the federal Family and Medical Leave Act (FMLA) and/or the California Family Rights Act (CFRA) are generally entitled to up to 12 workweeks of protected leave during a 12-month period. What employers sometimes overlook, however, is that they have flexibility in selecting the 12-month period for purposes of counting how much leave an employee has used. Which 12-month “leave year” an employer selects can significantly affect leave availability, administrative burden, and the potential for employees to "stack" leave from one year to the next.

Employers may use one of four methods for calculating the 12-month leave period:

  • Calendar year (January 1 through December 31)
  • A fixed 12-month period, such as a fiscal year or anniversary year
  • Measured forward from the date an employee first begins FMLA/CFRA leave
  • Rolling 12-month period measured backward from the date leave is used

The calendar year and fixed-year methods are the simplest to administer because employees receive a new bank of leave at the start of each leave year. However, these methods may allow employees to "stack" leave by taking 12 weeks at the end of one leave year and another 12 weeks immediately after the new leave year begins.

The measured forward and rolling backward methods generally prevent leave stacking but require more careful tracking. Under the measured forward method, the employee has 12 months from the date leave first begins to use the available entitlement. Under the rolling backward method, each time leave is requested, the employer looks back 12 months to determine how much FMLA/CFRA leave has already been used. Under these methods, employees will each have their own leave years.

Example

Assume Employee Alex uses the full 12 weeks of FMLA/CFRA leave from October 1 through December 23, 2026, and then requests another 12 weeks beginning January 5, 2027.  How much leave he can take depends on which leave year the employer uses.

Calendar Year (Jan. 1 – Dec. 31): If Alex’s employer uses the calendar year, Alex will be able to take 12 more weeks starting after January 1, 2027, even though he just used his 12 weeks from 2026.  

Fixed 12-Month Year: Alex will have to wait for the new leave year to start to be eligible to take more leave.  If his employer uses a standard fiscal year, he could take 12 more weeks of leave beginning July 1, 2027.

Measured Forward: Alex's leave year began on October 1, 2026, when he first took leave.  He will not be eligible to take any more leave until on or after October 1, 2027.  If he requests leave on or after that date, a new leave year will begin on the first date he begins leave.

Rolling Backward: This method looks backward from the date an employee requests a new leave.  Looking back 12 months from January 5, 2027, Alex already used his leave in late 2026. Beginning October 1, 2027, additional leave will gradually become available as leave taken in October 2026 falls outside the 12-month lookback period. Under this method, the leave year will be different each time an employee makes a request for leave.

Employers should ensure that their leave policies and employee notices clearly identify the selected leave year calculation method. If an employer fails to designate a method before an eligible employee requests leave, the employee receives the benefit of whichever calculation is most favorable. Employers may change their method for all employees prospectively, but they must provide employees with at least 60 days' advance notice and ensure that the transition does not reduce employees' statutory leave rights.  Employers with represented employees must notify and bargain with employee unions before they may change their leave year.

Selecting a 12-month leave year is just one part of administering FMLA and CFRA leave. Employers must also consider employee eligibility, qualifying reasons for leave, medical certification, designation notices, intermittent leave tracking, reinstatement rights, and the interaction between protected leave and disability accommodation obligations. For more information, PRISM members may access the Employment Practices Legal Advice Service webinar, “Untangling Medical Leaves of Absence,” available on PRISMtv. Members may also contact PRISM’s Employment Practices Legal Advice Service at 916-850-7400 with questions.