insight
No-fault attendance policy
Last updated: November 20, 2025
No-fault attendance policies use point systems to discipline employees who are absent or late a certain number of times, regardless of the reason. If employees incur enough points, they could be terminated.
No-fault attendance policy key takeaways:
- No-fault attendance points systems may be an effective way to curb absenteeism.
- Employers cannot discipline employees for taking protected leaves of absence.
- To minimize compliance risks associated with point systems, employers may want to explore other ways of enforcing attendance expectations.
Absenteeism, tardiness and no shows can significantly harm a business. Lost productivity, increased overtime costs and elevated stress amongst the workers picking up the slack are all possible consequences. To prevent such outcomes, employers might be tempted to enforce no-fault attendance policies.
However, an increasing number of jurisdictions are enacting leave laws and nondiscrimination protections that can make disciplining employees for absenteeism complicated. Employers may want to reconsider no-fault attendance provisions in favor of policies that align with their obligations under all related laws.
Table of Contents
What is a no-fault attendance policy?
No-fault attendance policies subject employees to progressive disciplinary action if they are absent or tardy a certain number of times, regardless of the reason. A point system is used for this purpose. Points are added for each absence and removed after a period of active service, commonly 12 months. Employees who accumulate enough points could be terminated, though no-fault policy specifics vary by employer.
Is an attendance point system unfair or illegal?
New York is currently the only state that expressly restricts no-fault attendance policies from being applied to legally protected absences. In all other states, employers are permitted to enact policies that discipline employees for excessive, unapproved absences.
However, workers may not be subjected to adverse action for taking any leave entitled to them by various laws, even without an express prohibition, like in New York. Employers enforcing no-fault attendance policies must have safeguards in place to avoid violating these laws.
No-fault attendance policy pros and cons
No-fault attendance policies reduce administrative burdens for employers and employees alike. Employers don’t have to differentiate between excused and unexcused absences, and employees no longer need to obtain documentation, like doctors’ notes, substantiating their time away from work.
On the flip side, no-fault attendance policies pose compliance risks. Provisions that suggest employees will automatically be disciplined for missing work may not be permissible if the absence is protected by law.
Always on, even when they’re off
ADP's absence management solutions help you keep your teams productive and operations moving forward
Protected leaves of absence and no-fault attendance policies
Employees may be entitled to leave of absence under federal legislation, such as the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act. There are also paid leave laws at the state and local levels. Absences protected by any of these laws may not be counted against employees when evaluating their attendance.
If employers suspect employees are abusing leave entitlement, they may be able to ask for medical certification. Many sick leave laws permit such requests, but only after an employee has been absent for a certain number of days or other specified circumstances.
Tips for enforcing an absentee policy
Employers can prevent absenteeism and tardy behavior without resorting to a no-fault attendance policy. Here’s how:
1. Train managers
Supervisors and HR personnel should thoroughly understand the attendance policy and know how to track attendance, manage leave of absence requests, recognize policy violations and address discrimination and retaliation complaints.
2. Address concerns promptly
If an employee isn't meeting attendance expectations, managers should meet with the individual in private to discuss the situation as soon as possible. They should cite specific examples of policy violations while keeping the conversation positive. They can explain that they’re trying to help the employee improve and give the individual an opportunity to respond.
3. Document disciplinary decisions
Employment decisions must be based on legitimate business reasons. Before disciplining employees for poor attendance, employers should ensure they have documentation to support their actions. They must also enforce their policies consistently so everyone receives fair treatment.
4. Regularly review attendance practices
Working with legal counsel, employers should carefully review their attendance policies to ensure they still comply with all applicable federal, state and local leave of absence laws. Policy documents may need to include nondiscrimination and anti-retaliation provisions to adhere to these laws. Employers might also want to encourage employees to voice their complaints about attendance procedures or report suspected policy violations.
Frequently asked questions about no-fault attendance policies
Is the attendance point system legal?
New York law prohibits attendance point systems with progressive disciplinary measures from being applied to legally protected absences. Other states and jurisdictions generally allow employers to enact no-fault attendance policies as long as they don’t take adverse action against employees for using their legally entitled leave.
Why are no-fault attendance policies problematic?
No-fault attendance policies sometimes conflict with the FMLA and other laws that entitle employees to leave of absence. Employers cannot count these protected absences against an employee as part of a disciplinary points system.
What is a reasonable attendance policy?
Reasonable policies hold employees to specific attendance expectations without violating leave of absence laws or being inflexible. Overly strict practices may be counterproductive if employees feel compelled to come to work even when they’re sick or incapable of performing at full capacity.
This guide is intended to be used as a starting point in analyzing no-fault attendance policy examples and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax guidance or other professional services. Please consult with your legal counsel.
Want more exclusive business insights like this delivered to your inbox?Subscribe now
