Mental health leave is on the rise: What leaders need to know

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Mental health leave is on the rise, Bloomberg reported July 8. 

Workforce mental health is especially relevant in healthcare, which faces rates of workplace violence far above the national average across industries. Healthcare and social assistance has an incidence rate of 14.2 per 10,000 full-time workers, while the average across all industry sectors is 2.2, according to 2021-22 data from the Bureau of Labor Statistics. 

Over the past year, 67% of U.S. employers saw an increase in mental health-related leaves of absence and accommodation requests, according to a survey from employment law specialist Littler, fielded in March and released in May. The figure rose to 74% for large employers. Nearly half of all respondents said the volume increased, and 18% said it increased significantly. This followed two similar years of increases, including 70% in the 2025 survey and 74% in 2024.

Some employees are taking mental health-related leave through the Family and Medical Leave Act, signed in 1993, which is intended to help employees balance work with medical needs, such as caring for a family member. Some companies say the growing trend of using it for mental health is straining resources, Bloomberg reported. Employers typically hire temporary replacements or redistribute work, but unlike expectant parents, workers taking mental health leave typically do not provide advance notice.

“Individuals are collectively more aware of when they’re struggling, and they need to take that leave,” corporate wellness consultant Erin Clifford told Bloomberg. Still, she said, “it’s important to recognize that if somebody ends up taking a leave, there’s work that’s not getting done.”

While difficult to determine how it affects employers, a 2022 Gallup report estimated the cost of a missed workday at about $340 per day for full-time workers, adding up to $47.6 billion annually in lost productivity for the U.S.

“Employees feel more comfortable coming forward, and that’s a good thing,” Jeff Nowak, employment attorney at Littler, told Bloomberg, “but it can also be crippling for employers.” 

For healthcare employers already managing chronic staffing shortages, mental health-related leave carries added weight: clinical shifts are harder to backfill than most, and hospitals and health systems have moved to expand benefits to get ahead of the strain and support employees long-term. Charlotte, N.C.-based Advocate Health, for example, enhanced its benefits in 2026 to include no-cost virtual therapy and expanded mental health resources, according to a July 9 LinkedIn post.

Healthcare employers have also expanded mental health benefits in response to interest from Generation Z workers. UC San Diego Health CHRO Kim Eskierka told Becker’s in 2025 that Gen Z places an emphasis on mental health benefits. The system has implemented free or subsidized counseling sessions and team member well-being programs.

“They have been very vocal about advocating for access to therapy and environments that support psychological safety, especially in high-stress healthcare roles,” Ms. Eskierka said.

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