Attendance Policy

This is the highest-stakes compliance section of any attendance policy.

Attendance Policy is an employer’s written rules governing when employees must be present, how absences and tardiness are reported, what consequences apply to violations, and which absence categories are protected from discipline. Most hourly workforces use a points-based or progressive-discipline attendance policy. Also called: absenteeism policy, time and attendance policy, no-fault attendance policy.

Why attendance policies matter

Unplanned absences cost US employers an average 36% of payroll across hourly populations in absenteeism-related productivity loss, per industry research. In shift-based operations – manufacturing, retail, healthcare, distribution – a no-show absence cascades into overtime cost, customer service failure, or production line stoppage. The attendance policy is the operational and legal scaffolding that limits this exposure: it defines what counts as an absence, sets consistent consequences, documents the discipline path, and – crucially – excludes the protected leave categories that the policy is not permitted to penalise.

The two main policy structures

Progressive discipline attendance policy

Each unexcused absence or tardiness triggers a documented step in a discipline ladder – verbal warning, written warning, final warning, suspension, termination. More flexible; more managerial discretion; more risk of inconsistency.

Points-based (no-fault) attendance policy

Each violation accrues a numeric point value; cumulative points trigger predefined discipline steps. The ‘no-fault’ label means the reason for the absence is not weighed (within categories that aren’t protected) – points apply automatically. Used heavily by Amazon, Walmart, FedEx, and most large hourly employers. More consistent; less manager discretion; clearer documentation.

A complete attendance policy: 7 components

1. Scope and eligibility. Which employees the policy applies to. Often non-exempt or hourly workforce, with separate (or no) policy for salaried exempt staff.

1. Definitions. What counts as an absence, a tardy, an early-out, a no-call-no-show, and an excused vs unexcused absence.
2. Reporting requirements. How employees must report absences (call line, app, text), how far in advance, and to whom. The ‘two hours before shift’ standard is common.
3. Points or progressive discipline ladder. If points-based, the table of point values per violation type and the discipline thresholds.
4. Protected and excluded absences. Explicit list of leave categories that do not accrue points or trigger discipline.
5. Documentation requirements. What documentation the employee must provide (doctor’s note, jury notice, etc.).
6. Termination provisions. The point threshold or discipline step that triggers termination, and the review process before separation.

Sample points-based attendance policy

Sample point values

Sample discipline ladder

Points roll off the employee’s record on a rolling basis – each point expires 12 months from the date incurred.

Protected absences: what cannot accrue points

This is the highest-stakes compliance section of any attendance policy. If protected absences accrue points and contribute to discipline or termination, the employer faces FMLA, ADA, USERRA, or state-law liability:

• FMLA leave (federal, for employers with 50+ employees). Approved FMLA leave – for serious health condition, bonding with new child, military family leave – accrues zero points. Intermittent FMLA leave for chronic conditions similarly accrues zero.
• ADA reasonable accommodations. Where attendance flexibility itself is a reasonable accommodation for a disability, absence under that accommodation cannot trigger discipline. The interactive process determines what is reasonable.
• Pregnancy-related leave. The federal Pregnant Workers Fairness Act (effective June 2023) imposes accommodation duties; pregnancy-related absences within accommodation may not be points-penalised.
• USERRA – military service. Absences for military service, training, and reserve obligations are federally protected from discipline.
• Jury duty. Federal and state laws prohibit discipline for jury service.
• Voting leave. Most states require time off to vote; some require paid voting leave. Absences under these laws cannot accrue points.
• State and local paid sick leave. DOL maintains a state sick leave reference – California, New York, New Jersey, Washington, Oregon, Massachusetts, and many cities require paid sick leave with anti-retaliation protections.
• Workers’ compensation absences. All states protect employees from retaliation for filing workers’ comp claims and for absences caused by work-related injuries.
• Domestic violence and victim leave. Many states (CA, IL, NY, NJ, CO, others) provide leave for victims of domestic violence; protected from discipline.
• Bereavement leave (where state-mandated). California (AB 1949), Oregon (OFLA), Illinois (FBLA), and other states mandate bereavement leave.

Common attendance policy mistakes

• Counting FMLA intermittent leave as points. The single most-litigated attendance policy failure. Intermittent FMLA for chronic conditions cannot trigger discipline.
• Inconsistent enforcement. If managers selectively apply the policy, discrimination claims become defensible by the employee. Track consistency by manager and demographic.
• No interactive process for accommodation. When an employee approaches the point threshold for medical reasons, the ADA may require an interactive process to identify reasonable accommodation.
• Treating tardiness and absences identically. A 10-minute tardy and a no-call no-show are not the same. Points systems should differentiate severity meaningfully.

Related: at-will employment for the termination context, annual leave and time in lieu for leave scheduling, and compressed work week as an alternative scheduling option that can reduce absence-related friction.

Frequently asked questions