The Cocoon blog

It seems like just a few weeks ago we shared our 5 newest launches—probably because it was just a few weeks ago. And yet, here we are again, with another big update. Today, we’re excited to announce our new product experience that initiates and streamlines the process of considering leave as an accommodation under the Americans with Disability Act (ADA) or Pregnant Workers Fairness Act (PWFA)—it takes the guesswork out of a notoriously complex process for employees and People teams alike. 

This new functionality enables employees to request an ADA or PWFA leave accommodation right from their Cocoon Dashboard and drives the interactions with their employers from there, who review and ultimately approve or deny the request. These workflows save People teams time and stress by providing employees easy and reliable access to a legally required interactive process to request leave as an ADA or PWFA accommodation.

Streamline leave accommodation requests in Cocoon

Although ADA and PWFA leave accommodation requests may not be frequent, when they do come up, they are often confusing and time consuming. Not to mention, there’s a lot of risk involved. The EEOC keeps statistics on the number and types of discrimination charges it receives and their most recent data shows that after retaliation, disability discrimination is the most frequently filed form of employment discrimination. Last year more than 25,000 charges were filed, making up 34% of all EEOC discrimination charges (!!) 

Here’s the good news: Cocoon’s got you covered. Our new leave accommodation experience saves People teams time and streamlines the interactive process by pulling some of the most disjointed pieces of the process together in product:

Employee leave accommodation request experience 

Employees can request leave as an accommodation in Cocoon when either they 1) have exhausted all available time under FMLA, state laws, and company policy, or 2) they are not eligible for FMLA, state laws, or company policies to begin with. Cocoon will then collect sufficient information and documentation from the employee regarding the nature of the request. 

People team leave accommodation request experience 

After the employee submits the leave accommodation request and requested information, Cocoon will surface this information in the Employer Admin Dashboard. Once an Employer Admin has reviewed the request, they can approve it, deny it, or request additional information directly in Cocoon.

By automating the request, review, and approval workflows for ADA and PWFA requests, People teams don’t have to worry about missing key steps and opening themselves up to risk.

“When it comes to the ADA, the interactive process is equally if not more important than the result employers reach.”
^{- Frank Alvarez, Cocoon founding legal counsel}

"When it comes to the ADA, the interactive process is equally if not more important than the result employers reach. We expect this new tool will substantially improve both employee and employer leave accommodation experiences," says Frank Alvarez of Cocoon. "Our software identifies the instances when employees have no sources of medical leave under the FMLA, state law or company policies, and then initiates workflows that allow employees to easily request leave as an ADA accommodation. Employers immediately view and approve or deny employee requests, or ask for more information or supporting medical documentation. Our team has been interested in tackling this issue for a while and we are super excited about this launch.”   

Build a more inclusive workplace, stress less about compliance

Cocoon’s mission is to empower every working person to focus on the important things in life when it matters most—this is absolutely inclusive of workers with disabilities who have every right to the same opportunities as everyone else. Disability discrimination laws are not getting any easier to administer, and they aren’t going away. Workers deserve these rights, and People teams deserve solutions that help them streamline the process. We’re excited to usher in a new era of more inclusion and accessibility for Cocoon, especially as we continue to expand on this functionality.

Sequoia, the leading compensation and benefits partner for VC-backed companies and pioneer in total people investment, has selected Cocoon as its preferred vendor for leave management solutions. We’re excited to share that Cocoon is now available to all Sequoia clients through Sequoia’s Marketplace with exclusive pricing. As part of the launch, we’re also offering special limited-time rates for any Sequoia client that signs with Cocoon before July 1.

"Taking care of employees during the significant moments in their life that require a leave of absence is a deeply important responsibility for an HR team. We're thrilled to partner with Cocoon to help connect employers and employees to thoughtfully coordinate leave management."
_{—Sequoia Chief Client Officer Christina Sullivan}

A huge step forward for awareness and access to leave

With over 50 mutual clients and more than two years as a Cocoon customer, Sequoia knows firsthand how Cocoon is bringing leave management into the modern era for People teams and employees alike. 

One of those employees is Sequoia’s own Stacey Lim, Senior Wellbeing Solutions Program Manager, who took two parental leaves in two different states—one without Cocoon, one with. “Having one central place for all parties with accurate and detailed information is critical,” Stacey says. “You aren’t relying on email threads or random meetings from three months ago to piece it together yourself.”

This partnership marks one step further toward Cocoon’s vision of seamless access to leave for even more employees like Stacey. It’s no secret that People teams are strapped for bandwidth, and that budgets are tight. Our partnership with Sequoia will save HR leaders the time-consuming task of vetting various leave management solutions, and make our software even more accessible through discounted pricing for Sequoia clients. 

"Taking care of employees during the significant moments in their life that require a leave of absence is a deeply important responsibility for an HR team," said Christina Sullivan, Chief Client Officer at Sequoia. "We're thrilled to partner with Cocoon to help connect employers and employees to thoughtfully coordinate leave management."

Cocoon uses first-of-its-kind technology to take the work out of employee leave. Companies like Sequoia customers Khan Academy, Miro, and Lacework rely on Cocoon to save countless hours each week, mitigate risk, and alleviate stress for employees during life's pivotal moments. Unlike traditional leave providers, Cocoon's technology automates the most complex aspects of compliance, claims, and pay, ensuring a more efficient and reliable leave experience, empowering People teams with real-time data to inform their leave program. For employees, Cocoon's unique software-first approach, coupled with unlimited support from our CLMS-certified Support Team, ensures a seamless, modern, and private leave experience.

Making if official

While we have partnered informally for years on events and to support mutual customers, becoming Sequoia’s official preferred leave management solution is a big milestone for Cocoon. 

“Sequoia is one of the most trusted names in people tech and the future of work,” says Cocoon Co-founder and COO Lauren Dai. “We are thrilled to have their vote of confidence, and together, to clear the path for more People teams to create the modern leave experience People teams and their employees deserve.” 

“Sequoia is one of the most trusted names in people tech and the future of work. We are thrilled to have their vote of confidence, and together, to clear the path for more People teams to create the modern leave experience People teams and their employees deserve.” 
_{—Cocoon Co-founder and COO Lauren Dai}

To learn more about accessing Cocoon through the Sequoia, visit the Sequoia People Platform Marketplace or talk with a Sequoia advisor. The future of leave is here, and we hope you’ll join us.

Challenge: Employees taking more complex leaves across dozens of new states outgrew Khan Academy’s manual leave management process consisting of spreadsheets and an external consultant.

Solution: Dedicated leave of absence software with a user-friendly interface that could handle dynamic leave modeling, paperwork submission, payroll calculations, and reporting—across dozens of US states.

Results: 

• People Ops saves time by eliminating complex state leave laws research and scaling time spent per leave.
• Payroll team eliminates manual work with Cocoon’s payroll calculations, summaries, and supplement pay breakdowns.
• Leave-takers feel confident in the paperwork they’re submitting and their overall leave plan.
• Improved team function and company perception of People Ops as a polished and organized team.

Keep reading for the whole story ↓

Meet Crystal Kung @ Khan Academy

Khan Academy is a 501(c)(3) nonprofit educational platform offering personalized learning resources for all ages in order to provide a free, world‑class education for anyone, anywhere. In a similar vein, Khan Academy’s People Operations team strives to provide an excellent employee experience for their employees all across the US. This is where Crystal Kung, Head of Total Rewards, comes in. She’s worked across the tech sector and was intrigued by Khan Academy's purpose and impact as a nonprofit ed-tech organization. And as you might expect, Khan Academy employees are quite tech savvy, which influences the tools they use and company culture—things that were put to the test during the global pandemic. This prompted Crystal to search for a new leave management system to give employees a better leave experience, no matter where they were.

Enacting a competitive leave policy… suddenly across dozens of new states

“Before the pandemic,” Crystal explains, “leaves were easier to manage due to them mostly being basic parental and medical leaves based in California. We could manage them in a Google Sheet, working with an external leave consultant to help People Ops and Finance with leave administration.” Each basic leave took about 40 hours of work to manually model the leave, work through a plan with leave takers and managers, and follow through on paperwork from start to finish. But this system started to break down during the pandemic. 

“Suddenly everybody started moving across the country, including states where we didn’t operate yet, we saw a mini baby boom, and there were more medical and caregiver leaves that came with complexities we hadn’t yet encountered.” It also didn’t help that some people had moved from states with generous paid leave laws to states that did not. With the increased demand for leaves, this left Crystal, her team, and their external leave consultant struggling to keep up with each leave and subsequent requests, while also keeping track of constantly changing state laws. “I wanted to find a solution that worked for People Ops while delivering a great employee experience that made sense for Khan Academy’s size and operations.”

What Khan Academy looked for in a leave management system

“I knew we couldn’t afford a dedicated headcount to just leaves… but I also wanted a personalized service that could handle the most common types of leave, offering hands-on help for employees’ paperwork,” Crystal says. “It was also important that the system offered dynamic reporting and leave modeling for the People team and employees to understand what was going on for each leave.” Other important factors were training for managers and HR admins, easy manual census uploads or  integration with their HRIS, an understanding of Khan Academy’s industry, and being minority-owned as “a nice bonus.” Naturally this made Cocoon a top contender.

“Cocoon ultimately won me over because of its support style, the user-friendly UI, and general ease of use. The fact that they can help leave takers fill out government forms that are confusing for (even me as an HR pro who has led a few leave of absence programs!) was huge."

“Cocoon ultimately won me over because of its support style, the user-friendly UI, and general ease of use. The fact that they can help leave takers fill out government forms that are confusing for (even me as an HR pro who has led a few leave of absence programs!) was huge. I even vetted the backgrounds of the customer support team to make sure they had real experience on this topic—and they do.” 

Cocoon is a win-win-win for People Ops, Payroll, managers, and leave takers

Upon implementing Cocoon, it was a huge relief for the People Ops and Payroll team, saving them hours of manual tasks and high-pressure work managing the forms and pay calculations for each unique case. “We don’t have to do last minute, and frankly difficult, research for each leave in each state just in case a new obscure leave law comes out under our radar,” Crystal says, relieved. “Plus, the Payroll team loves the payroll summaries, supplement pay breakdowns, and how Cocoon is able to factor in state, disability, and supplemental pay.” 

Crystal also says Cocoon has saved the People team time and money. “As more people go on leave, it’s like a snowball effect of savings because redundant administrative work is automated. Plus when you think about some of the stressful and mundane tasks Cocoon eliminates, you know that it boosts team energy and how they feel about their day-to-day work.”

For leave takers, they loved that Cocoon handled complex paperwork, and that they could dynamically model their leaves privately before sharing with their manager and People Ops. “Now, employees can show up to a conversation with their manager with a plan and understanding how their leave will work more or less, and managers get help and suggestions to prepare their team and report for the leave. It’s a lot less pressure and fear for everybody.” 

How Cocoon bolsters Khan Academy company culture

Overall, Crystal says that Cocoon has helped refine the image of People Ops coming out of the pandemic as a more organized and polished team. “One of our company values is ‘working responsibly and sustainably’ and Cocoon definitely supports that value.  Another one is ‘bringing out the joy’ which you can feel with Cocoon’s UI. You know, someone might be going through a really difficult time on their leave, and you can tell that Cocoon puts effort into giving them the best experience possible whether it’s through features or the graphic design to bring out the joy. So it’s a joyful process to use it.”

“Being in HR navigating through the pandemic and societal changes in the past three years has been very hard,” Crystal admits, “but there’s help out there! And we’re glad we found it with Cocoon.”

New year, new Cocoon. Just kidding, we’re still the technology-first company driving the digital transformation of employee leave that you know and love. Only a month into the new year, we’re excited to share the strides we’ve made toward our vision of transforming leave for both employees and People teams. This month’s launches bring even more clarity and automation into the leave management process to free up time for you to focus on the things that really matter. Let’s dive in:

Even more leave pay clarity for employees

Has an employee ever emailed you during leave with a list of 14 questions about their leave pay when they should have been focused on the reason for their leave instead? It’s not a great situation for either person. 

Last year, we launched the employee Pay Tracker to give employees visual insight into their different pay sources to reduce confusion. This month’s update brings even more granular details into the Pay Tracker to help employees understand their leave pay. 

Employees can see their leave pay in each period (both past and upcoming) broken into regular pay, leave pay, expected benefits, and total pay. Seamless access to these details means employees can find answers to their pay questions (a notoriously confusing part of taking leave) in real time right in Cocoon—which means fewer questions about pay popping up in your inbox. And, we’re actively working on complementing these details with more employee pay education through videos and FAQs right in their Cocoon Dashboard. Stay tuned.

Military family leave support (we’ve now got you covered on all FMLA leave types now)

We expanded our platform to include military exigency and military caregiver leaves, rounding out our support for all FMLA-covered leave types. If you need a refresher on military family leaves, we can help out with that too:

Who qualifies for military family leave entitlements?

There are two broad types of military family leave under FMLA:

1. Military Caregiver Leave

This leave is for employees who need to take care of a covered service member with a serious injury or illness. Their relationship to the injured service member may determine their eligibility to take this type of leave.

2. Qualifying Exigency Leave

This leave is for employees who need time to handle urgent issues that have come up because of a family member’s active military duty or their impending call to serve. There may be limits to what constitutes qualifying military duty, reasons for leave, and who is a qualifying family member (the FMLA lists nine categories of qualifying exigencies).

Improved visibility into employee leave events

Next up is our new Leave Log, which gives Cocoon Admins a timeline of key events, updated in real time, for each employee’s leave: submission, forms uploads, status changes, leave date adjustments, and more. This level of visibility further empowers HR teams with the context they need to answer employee questions quickly—no scouring through long email threads or frantically messaging outsourced reps for more information. 

Because employees use Cocoon for key leave tasks like date changes, logging claims tasks, and uploading certain forms, we have the unique power to surface these details to People teams in the way only a true software platform can.

Our latest HRIS integration: ADP Workforce Now® 

Last but certainly not least, we are thrilled to announce that we now offer an API integration with leading HRIS platform ADP Workforce Now® to automatically sync census information from ADP® to Cocoon in real time. Companies that use ADP Workforce Now® can save hours each month that would otherwise be spent manually uploading census files. Put those hours towards something more worth your time and be confident your employee information is always accurate, secure, and up to date. This launch marks Cocoon’s tenth API integration with the top HRIS platforms.

Harnessing the power of technology to evolve quickly for today’s digital workplace 

As a true software-powered leave management system, we have the flexibility to rapidly evolve and innovate based on feedback from our current and prospective partners. From systems that don’t speak to each other to confusion over leave pay and more, we’re committed to solving some of the most challenging parts of taking and managing leave. Expect many more exciting announcements in 2024 as we continue to build the tech-first tools that people-first companies deserve.

Tons of HR leaders (like you) are interested in leave management software, but might have questions or reservations. We get it—it’s a new category, and letting software take the lead when it comes to something as complex and personal as leave can feel off for some. Yet the reality is, SaaS solutions are far from new, and those continuing to rely on rep-based models or having People teams “figure it out on the fly” are stuck carrying out time-consuming and error-prone manual processes (like navigating insurance claims, calculating payroll, and calling 1-800 numbers for help). In the end, it opens you up to legal risk, higher employee turnover, and poor experiences for everyone. 

We’re confident that leave management software is the way of the future—not just because so many other industries have embraced SaaS solutions, but because this is the better way to manage leave for everyone. That’s why we’ve created this guide to leave management software, what it is, what the benefits are, and what to look for when you purchase it.

What is leave management software?

Leave management software goes by a few names (aka leave management system, absence management software, or leave tracking software). But in a nutshell, it simplifies and automates the major components and complexities of planning a parental, medical, caregiver, or other types of employee leave (especially when they need to be FMLA compliant). It does this by tackling compliance, claims, and payroll for People teams and leave takers. Leave management systems help support people through some of life’s most pivotal moments—whether it’s welcoming a new child into the family or navigating a loved one’s health emergency.  

When you search for leave management software, you’ll see a lot of solutions that primarily focus on tracking PTO requests and managing vacation and sick days—but that’s not what Cocoon does. While Cocoon does play nicely with your HRIS, it’s important to let each tool in your tech stack play to its strengths and distinct functions so you can cover your bases thoroughly, rather than stretching one tool too far in the wrong direction.

Key features of leave management software

Each software offering will differ, but the features below are all part of our ever-growing and evolving platform, and we think they’re table stakes.💡 See how these features work with our interactive demo library. No sign up or email required.

‍

Compliance

• Automated federal and state compliance
• Rules engine to determine eligibility
• Compliance alerts

Payroll

• Automated payroll calculations
• Pay tracking by source, amount, and date for both employees and HR teams

Reporting

• Dashboard for detailed insights into leave plans, claims, and pay
• ROI reporting to see benefits recouped, leave length, policy utilization
• Leave logs to see employee leave history

Employee experience

• Private leave design and planning
• Step-by-step claims guidance
• Comprehensive task list with automated reminders and triggers to complete tasks
• Ongoing expert support

Integrations

• Works with common HR tools for smooth transitions between tools and data sharing

Benefits of leave management systems

Whether you already have a rep-based leave provider or don’t have any system at all, switching to a leave tracking software will kind of feel like moving to online banking after writing checks and balancing the checkbook. Some of the top benefits our customers often mention include:

• Better financial forecasting for leave takers and HR leaders with accurate payroll and claims calculations
• Risk mitigation with always up-to-date compliance
• Time savings and improved work satisfaction for HR team
• Demonstrable ROI and savings (which also makes for easier leadership buy-in)
• Scaling with company growth and rapid change
• Peace of mind for leave takers before, during, and after leave

See how Cocoon stacks up with third-party, rep-based leave providers.

How to evaluate leave tracking software

We actually have a dedicated blog all about this, which we recommend checking out. But if nothing else, you should at least ask about the following topics:

• What is their process to ensure compliance with company policies and state and federal law? (especially across distributed workforces?)
• How do they handle claims submissions and tracking?
• What data and permissions do they need from your employees?
• Do they align with your company culture, strategy, and employee needs?
• What does implementation look like?
• What are their pricing tiers and how do they help you calculate ROI?
• Will they be able to scale with you as your company grows?

See a more extensive list of questions to ask a leave provider here.

Who should purchase leave tracking software?

Though some companies might be better candidates than others, the bottom line is that if you’re not satisfied with your current leave provider or if you feel that the complexity of managing leave monopolizes your team’s time, opens up your company to risk, and leaves employees frustrated, you have a clear need for leave tracking software. Other good candidates might include companies that:

• Have more than 50 employees within a 75 mile radius (for FMLA eligibility)
• Have more than 200 employees in general
• Are headquartered in states with robust leave laws like: CA, NY, MA, WA, DC, CO, CT, HI, NJ, OR, RI
• Have competitive parental, medical, or caregiver policies
• Already use HR SaaS tools like ADP, Workday, Gusto, or BambooHR

The bottom line about leave management software

Shaped by our own leave experiences and the horror stories of family and friends, we’re more determined than ever to revolutionize how People teams and leave takers plan and manage leaves, moving away with the antiquated systems of the past. With millions of people taking leave each year (and millions who don’t precisely because it’s too hard), it’s time for HR leaders to step up not just because it’s “the right thing to do” but because it makes better business sense. Now is the time to make the move to leave tracking software.

In order to attract and retain top talent, simply having a progressive parental leave policy isn’t enough.Your policy and employee handbook should set clear expectations about how and when the policy can be used, along with examples, so employees already know what to expect in the event they decide to utilize the benefit. Leaving things up to interpretation can mean employees don’t understand their rights and People teams feel less prepared. That’s why we created this 10-step checklist for People teams to review their existing parental leave policies. If you don’t have a policy in place yet, check out our free sample policy generator. 

Note: The following checklist was crafted by Cocoon’s in-house team of leave experts. However, it is not legal advice or a legally-reviewed policy checklist. It should be used only as a framework or starting point to review your own policy. Work with your legal counsel before introducing any leave policy updates or changes to your employees. 

Regardless of your policy, employees may be entitled to protected and/or partially paid leave under FMLA or applicable state programs. Any parental leave policy must be coordinated and integrated with federal FMLA, state, and local leave requirements, and applicable company policies and benefit plans.

1. Parental leave policy statement

Why: A policy statement sets the tone, giving you the opportunity to call out company values and give a brief overview of how your policy supports employees.

• Explain why you offer paid parental leave.
• Show how your company policy interacts with federal, state, and local leave laws.

2. Employee eligibility

Why: Clearly outlining eligibility before describing benefits helps avoid any misunderstandings with employees that may not qualify for your policy.

• Identify who’s eligible for your policy.some text
  • E.g. is it only full time employees?
• Call out when the policy can be used: From day 1 or after day 90? 

Tip: 43% of Cocoon customers have a tenure requirement, and of those that do, the median is 6 months–compared to FMLA’s 12 months.

3. Qualifying leave reasons

Why: Clearly explaining when your policy can be used helps prevent misuse and reduces the number of questions HR receives about it.

• Define when your policy can be used (qualifying leave reasons)some text
  • FMLA and state leave laws have their own defined qualifying leave reasons you need to be mindful of, but you should also outline your company’s policy.
  • E.g. “Eligible employees may take paid parental leave for periods when they temporarily are unable to work due to pregnancy, childbirth, or related medical conditions (before and after childbirth) and/or bonding with a child following the birth, adoption, or foster care placement of a child. [Sample Co.] treats multiple simultaneous births or placements as a single leave under this policy.”

4. Leave time and pay

Why: Setting clear time and financial boundaries helps employees plan their leave accurately so they can plan ahead and feel prepared.

• Outline how much the company policy covers, for how long, and when it must be used.some text
  • E.g. “Non-birthing parents can take up to 10 weeks of leave at 100% of pay, and it must be used within 12 months of the first day of taking leave.”

Tip: If you’re wondering how your policy stacks up against your peers, check out Cocoon’s 2024 benchmarks.

5. Intermittent leave

Why: Each leave comes with its own unique circumstances, prompting some leave-takers to ask for certain accommodations. Think through these scenarios to ensure HR gives clear and fair answers to everyone.

• Clarify whether intermittent leave is acceptable under your policy.some text
  • This may look like a minimum increment of a day or requiring that the time be used in a maximum of 4 chunks.

Tip: Most employers in Cocoon’s benchmarking dataset require 2-week minimum leave increments to reduce disruption to work.

• Offer guidance on PTO usage.some text
  • Are employees allowed to use PTO before or after their leave to extend their time off? If not, call that out here so they know right away.

6. How to request a leave

Why: Documenting your leave request process makes responsibilities clear so there are fewer questions or opportunities for a misstep. It’s also easier to scale and change the process when you formalize the steps.

• Outline step-by-step how employees can request a parental leave.

Tip: If you use a leave software like Cocoon, this is entirely self-serve for employees

7. Medical documentation requirements

Why: Failure to obtain and present certain documents by specific deadlines can mean benefits are denied or delayed. Make sure employees know what they need to obtain and submit, and when to expect it in the process. 

• Provide an overview of employee responsibilities to obtain medical certifications.
• Outline what’s required within the medical documentation. 

Tip: The employee Claims Task List provides a checklist with the necessary documents, due dates, and how to submit their to their medical providers. 

8. Return to work and job restoration

Why: Having a return to work plan not only makes leave takers feel wanted and welcome, but also sets clear boundaries about communication while they’re out on leave that can be awkward to rectify once they’re out.

• Outline what this process looks like at your company.
• Think about the timeline for your employees and HR team. When is it appropriate to start communication?

9. Group and non-group health benefits

Why: Suddenly losing access to benefits you were counting on or regularly use can cause a negative employee experience, so make sure leave-takers know what will continue, stop, or be put on pause. 

• Explain which benefits continue and which ones are put on pause.some text
  • For example, do they continue to vest stock? Do they have access to wellness stipends?

10. Coordination with statutory leave benefits

Why: Planning a leave can get pretty confusing when you’re doing it in a spreadsheet, Google Doc, or email chain. Clarifying this up front ensures you avoid situations where an employee tries to take any time available to them through their state program before utilizing your company policy.

• Clarify that your policy runs concurrently with statutory leave benefits.

Now that you’ve double checked your parental leave policy, you might also want to refresh your familiarity with FMLA policies to ensure you’re offering both a progressive and compliant leave.

In nearly every aspect of life, technology has revolutionized what we can achieve, and the time and effort it takes to do so. We can make a payment instantly, communicate with anyone worldwide, launch new businesses in a matter of clicks…yet when it comes to taking and managing leave, we’re stuck faxing claims, calling 1-800 numbers, and using websites that feel like they’re from the 90s. That’s why it's time for a digital transformation.

Our mission from day one has been to empower every working person to take care of the important things in life when it matters most. After two years, working with hundreds of employers, and supporting more than 5,000 leaves in Cocoon, we have more conviction than ever that technology has the power to transform taking and managing leave. Today, we’re excited to share our evolved and expanded vision, along with the technology that will power it — with an all new look and feel.

Bringing more awareness and seamless access to leave

We envision a world where everyone fully understands their leave options and can easily access the time and pay available to time. Cocoon pioneered a different leave experience from day one, starting with software that enables employees to plan a compliant leave privately, in their own time, and share with their employer when ready to request a leave. In the coming years, we plan to expand this level of awareness and access by making Cocoon available to anyone globally — whether they work full-time at a venture-backed startup, or part-time at a local hardware store. More immediately, we’re also building product support for any type of leave, from military to bereavement and beyond, plus expanded support for requesting leave as an ADA accommodation. 

Removing income as a barrier to taking leave

We envision a world where every working person can afford to take the time they need during life’s pivotal moments. Today, only 25 percent of U.S. workers have access to paid family leave through their employer, making leave prohibitively costly for most. Financial technology products have enormous potential to change this: imagine the ability to click a “top up my pay” button to keep your salary at 100% during a parental leave, or having the option of “leave lending” to get a loan for a medical leave.  

Access to pay also requires ensuring employees can easily access the state and private insurance benefits they are entitled to. After a lot of learning, research, and observing shifting state regulations that require direct interaction with claimants (California, for instance, partnered with ID.me and now requires two-factor authentication) we know it’s time to empower employees to file their own claims in a way that still reduces cognitive load. 

We’ve invested in a Claims Dashboard to show a dynamic tasklist of claims to-dos and deadlines, plus Claims Copilots that automatically surface key information from your HRIS (like start date, employer EIN, and more) to help employees fill out each form quickly and accurately. For notoriously tricky portals like the California EDD, our Copilot mirrors each screen and shows employees exactly what information to put where. We’re excited to keep pushing the boundaries on tech-enabled claims solutions that take the time to file from hours to minutes.

Empowering People teams with automation and integrations

Beyond the individual experience, we know how time consuming and nerve-wracking leave can be for employers. We’re building toward a future where employers rely on our technology to handle all the logistics of compliance, payroll, and beyond — freeing them to focus on strategic work that humans are uniquely suited for. 

Compliance is one of the most notoriously complex and painful parts of the process. The US alone has hundreds of state leave laws, with the legislation landscape changing monthly. Combined with the increase in distributed teams, staying compliant is harder than ever. Cocoon’s proprietary rules engine combines inputs from employees and systems of record then evaluates them against state and federal laws to calculate eligibility, so as laws or your policies change, you can trust Cocoon to capture those changes — no more compliance risk or Googling leave laws every time an employee moves to a new state.

Cocoon brings this same level of automation to managing payroll during leave. Our software estimates any benefits an employee will receive, and combines this with an employer’s policy to calculate what an employer owes. To make HR workflows like payroll even easier, we’re proud to share that Cocoon is the first leave management software to have API integrations with several top HRIS providers, including Workday, BambooHR, Zenefits, and Gusto, to automatically sync information to Cocoon in real time, eliminating manual entry and inconsistencies between tools. 

Perfectly coordinating the leave process also means giving employers seamless access to the information they need, all in one place. Our Admin Dashboard offers unmatched visibility to help employers support their teams, troubleshoot when questions arise, and make strategic decisions. Admins can see granular details into each employee’s leave plan and claims task list, while Pay Insights breaks down all payments made to any employee on leave across pay periods and by pay type. For company-wide trends, our Insights Reporting automatically surfaces key data about your leave program, like total benefits recovered and policy utilization across leave types and time frames. We’re excited to release additional Admin visibility tools and more two-way HRIS and payroll integrations in the coming months.

A new look and feel

Beyond the expanded vision and product offering behind it, we’re thrilled to reveal an all new look and feel for Cocoon. But it goes deeper than just colors and designs — we set out to rethink our brand to convey the experience we want everyone to have using our product: one that’s caring, trustworthy, empowering, and goes beyond the status quo. Our visual brand now fully embraces this identity and purpose. 

“The name ‘Cocoon’ evokes the warmth and protection we hope our product provides, so we decided on a wordmark as our primary logo. The symbol that accompanies it represents the complex web that is leave, but also the support and community Cocoon offers.”
_{- Camellia Neri, Brand Designer}

Try it for yourself with our free leave options explorer

To help expand awareness about leave options to every working person, whether their company uses Cocoon or not, and give you a glimpse of the future we’re building, we’ve made our leave planning tool publicly available. Simply input your details, and you’ll see a timeline of your leave plan with the leave laws and entitlements that cover it.

We are incredibly grateful to our employer partners, like Carta, Benchling, Notion, and many more for joining us on our journey to build a more humane future of work. We believe our mission will change the world for the better and there’s not a second to waste in creating a world where awareness and access are no longer barriers to taking leave. We’re building the tools our loved ones deserve — and we hope you’ll join us.

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Onwards,

Mahima Chawla & Lauren Dai

Cocoon co-founders 

Stacey Lim, a Senior Wellbeing Solutions Program Manager at Sequoia Consulting Group, has taken two parental leaves in two different states, as well as one leave with Cocoon, and one without — something that makes her a bit of an expert on the topic, having lived it from various perspectives. Her experiences demonstrate not only the complexities of planning and taking leave, but also the great things that can happen when employers consider and implement employee feedback to improve the leave experience. 

Paint us a picture of your first parental leave

“I got pregnant at the end of 2019, and had to make the nerve-wracking announcement to HR and my manager — all while news about COVID-19 was ramping up. The HR generalist did a really brief walkthrough of what to expect, but we both knew that there was more to it than that. At this time, we were living in Arizona, which doesn’t have a state disability program, and the company policy at Sequoia varied by state. It was a lot to plan and figure out.”

How did planning and taking your first parental leave go?

“In those days, there were just a few parental leaves a year at Sequoia, so there wasn’t a robust process around it. Depending on who your manager was, if they had taken leave or knew about it, your experience would vary. As an advocate manager, I had some familiarity with the process, but it’s so different when you do it while pregnant and as a new mother versus advising someone who is.”

“When I was out on leave, I felt like I didn’t have the time or the brain to do all the paperwork and keep track of it. I had to make specific time to go through emails, and sometimes they were from months back. Coming back to work was also kind of clunky, like how do I say I’m ready and how will they prepare for my arrival? Will the transition be smooth? How do I set my nursing schedule? Questions you don’t want to ask, but need the answers for.”

What changed at Sequoia between your first and second leave?

“There were dozens of babies born during the pandemic, so they realized it was time to revisit the parental leave policy. Soon after coming back from my first leave, Sequoia announced they were changing their process and policy, and even asked for my feedback. They made the policy the same across all states and started implementing Cocoon. That really seemed to give HR and employees the confidence knowing things were more universal and Cocoon was the leave sidekick.”

How did your second leave pan out?

“It was like night and day. Despite being in California this time (which has a lot more requirements and steps), I felt way more confident and supported. I loved that in Cocoon I could start planning before I even took leave. The portal was a game-changer to get answers to candid questions in real time, and play with my leave timeline and payouts. Then when I was on leave, I could log in and know where things stood without having to reach out to coworkers or meticulously skim through emails. I didn’t have to waste energy even worrying about tracking those things because it was all right there.”

What were the major differences you noticed having Cocoon vs. not?

“Having one central place for all parties with accurate and detailed information is critical. Cocoon breaks down your wage payout so there aren’t any payroll snafus or hiccups. The rules from your employer and government are codified so you know what the policy is, what’s approved, what the parameters are. You aren’t relying on email threads or random meetings from three months ago to piece it together yourself.”

“Another thing that was huge is that I actually felt like I got confirmation on things like claims submissions, so I could close out of something instead of worrying about it, if it was received, and then not having any idea who to call or how to check on it. It allowed me to better focus on my work before I left, not having to look stuff up or call during work hours. Not to mention the peace of mind I got not remotely having to worry about pay while on leave. I could simply focus on my family.”

How did your leaves change your relationship with your employer?

“Cocoon was a game-changer for us. Before, we were a little lost, and colleagues used to ask for and share tips about leave. Now that Cocoon is implemented, though, I don’t really see those conversations so we can focus on deeper kinds of support. Talking to other parents and people in different industries, I realized how great the benefits we offer are. We have a great leave policy, a supportive culture, and all of that’s codified in Cocoon. I think everybody is a lot more comfortable about the subject of leave, whether you’re taking one or supporting someone through it, which is huge.”

While the Family and Medical Leave Act (FMLA) offers basic guidelines for medical leaves, many forward-thinking and sought after companies want to do more to take care of their employees and appeal to candidates. However, crafting your own FMLA-compliant and competitive medical leave policy can be daunting. That’s why we worked with our founding legal Counsel, Frank Alvarez, to create an interactive medical leave policy generator to give you a starting point. 

Before joining Cocoon, Frank counseled employers for more than 30 years on ways to operationalize leave, accommodation, and other employment laws. We asked Frank to include questions in the policy generator that employers might typically consider when developing a relatively basic but effective medical leave policy. Hopefully, this gets you started in drafting a medical leave policy that works for your company and its employees.

As a reminder, Cocoon is not a law firm and, although Frank is an attorney, he is not your company’s attorney, and nothing in this blog or the policy generator is intended to provide you legal advice. Therefore, make sure to review number six in the process below!

Now that you have a starting point, read through each section below to continue revising your policy.

How to draft and launch a compliant and competitive medical leave policy:

1. Understand what medical leave is 

Your policy reflects your company’s concrete stance on what employees can expect for a medical leave and sets the tone. It should demonstrate how and by whom their medical leave will be handled. So before launching, plan on offering trainings to People team members and managers about your policy, the processes it entails, responsibilities and obligations for each party, and a range of use cases they’re likely to encounter so they can respond to employee questions with credibility and empathy. Now is the time to start having these conversations and trainings so everyone can get grounded in the why and the how of your medical leave policy. 

2. Define eligibility and how benefits interact

Thinking through the different eligibility criteria and medical leave scenarios helps you avoid miscommunications and unintentional exclusions or negative consequences. Here are some common eligibility parameters and benefits covered in a medical leave policy (which are included in our policy generator):

Common eligibility parameters

• Employee tenure/hours of service
• Full-time vs. part-time vs. short-term
• Exempt vs. non-exempt
• Geographic considerations (including worksite size)

Cocoon benchmark: 57% of Cocoon customers don’t have a tenure requirement, so employees are eligible from day one.

Benefit offerings

• Time — How long is their medical leave? Must they take leave in one continuous block of time or do they have rights to intermittent leave/reduced leave schedules?
• Pay & pay sources — How much will they get paid while on leave and is any of it conditional? How is pay calculated? Where does this money come from (e.g., state, insurer, employer, or a combination)? Does pay “top up” and coordinate with these other benefits?
• Access to health/non-health benefits — Will their rights to health insurance continue? Will they continue to vest stock options? Will they continue to have access to other perks?
• Protected time off — To what extent will you commit to restoring an employee’s job after they return from leave?  Will you commit to restoring them to their same job, an equivalent position, or something else?

Cocoon benchmark: Across all companies surveyed in our Paid Leave Benchmark report, the median medical leave policy is six weeks, with the biotech industry offering up to twelve.

3. Consider how your policy interacts with the FMLA

Most employers run company medical leave concurrently with FMLA or other statutory leaves — however, remember that FMLA provides unpaid leave while your company may provide paid leave or PTO. This can lead to some tricky policy decisions. You might choose to include the examples below under your medical leave policy, while allowing your PTO policy to address less serious and temporary medical conditions. You also can go more in-depth on FMLA compliance with our checklist.

Medical conditions covered by the FMLA policy

The FMLA defines a serious health condition as “an illness, injury, impairment, or physical or mental condition that involves either inpatient care or continuing treatment by a health care provider, involving a period of incapacity that prevents them from being able to work.” Some examples might include:

• Ongoing chronic condition that might require periodic medical visits on a regular basis or cause prolonged periods of illness (e.g., Crohn’s disease)
• A sudden or temporary health condition (e.g., recovering from an infection or surgery)
• A mental health-related leave
• A period of incapacity related to pregnancy, childbirth or related medical conditions
• A work-related injury (for which employees might receive workers’ compensation benefits)
• A serious long-term illness

Also keep in mind that the FMLA addresses parental leave, caregiver leave, and medical leave under the same roof — meaning the eligibility criteria are the same for those FMLA leave types. But as you consider policy goals (including talent acquisition and retention), you might decide to vary eligibility criteria or other policy rules for parental, caregiver, and/or compassionate leave policies (and we have policy generators for all three). 

4. Ensure legal HR compliance and alignment with company policies and benefits

Now you need to reconcile your policy with federal and state laws to ensure legal compliance. This can start to get tricky — especially if you operate in multiple states — as laws vary by location. Recognize overlapping legal obligations and aim for consistency between laws and company policies. For example, clarifying that PTO cannot be used before or after a leave.

Common statutory benefits and company policies to consider

• Federal FMLA
• State paid/unpaid leave
• State disability benefits
• Private insurance benefits
• Voluntary additional employer pay (e.g., top-up pay)
• Health insurance
• Other non-health insurance benefits (e.g., accrual of PTO, continuation of pension, access to mental health benefits, etc.)

Questions to ask

• Will you provide the same or more than what you are obligated by law?
• Will you provide a baseline regardless of employee location?
• Will your policy run concurrently with overlapping statutory benefits or be “stacked” on top of them?
• How does an employee request company medical leave?
• Do employees need to provide additional certifications upon requesting medical leave or returning to work?

5. Clarify responsibilities for each stakeholder 

Make your policy more transparent and stay legally compliant by making responsibilities for each stakeholder clear by defining:

• Who are your stakeholders? (internally and externally)
• What are leave-takers’ responsibilities? (e.g., many employees may be required to submit a certification with specific details from a healthcare provider in support of requesting FMLA coverage)
• What are others’ responsibilities? (People team, healthcare and insurance providers)

If you manage your leave with Cocoon, we’ll map a lot of this out for you to streamline next steps, owners, and deadlines. For example: 

• Employees get information about required medical certifications, dates, and deadlines
• Managers get notifications about employee leave dates (when they're leaving and returning)
• Admins admins have visibility into claims progress for all employees on leave

6. Get your legal team to review 

While our policy generator template gives you a starting point, you still need a legal expert to go over it with a fine-tooth comb before launching anything. They can ensure your policies are in line with state and federal guidelines and that they’re using the correct language. 

There’s a lot to consider, but with our policy generator and this walkthrough, you’re off to a good start. Once your policy is launched, Cocoon is here to dutifully help you implement it, and to help your employees plan and manage their medical leave should the time come.

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‍Employer notice requirements under the FMLA

Employer responsibilities under the Family and Medical Leave Act (FMLA) begin before an employee even requests a leave. The FMLA requires that employers provide general notice to employees about their FMLA rights and responsibilities. These general notices must be posted in the workplace and, if an FMLA-covered employer has any eligible employees, included in employee handbooks so that employees understand their leave rights and the steps they must take to exercise those rights before they need FMLA leave. 

On top of that, employers also have specific notice obligations that require them to inform employees of their FMLA rights and responsibilities when employees actually seek FMLA leave (employees don’t always remember policies and information from when they were first hired). These notice requirements help employees understand their eligibility and utilize what’s available to them under the FMLA.

FMLA administration for employers

Keep reading, or download an interactive version here:

Step 1: Display the FMLA workplace poster

First, make sure you have the required posters displayed at your worksite. The Department of Labor Wage and Hour Division (the agency responsible for enforcing FMLA) publishes the required FMLA posting.

Tip: Covered employers must display this poster even if they don’t have any FMLA-eligible employees. 

Step 2: Ensure your employee handbook includes FMLA policy language

Next, review your FMLA policy. The FMLA policy in your employee handbook must contain, at a minimum, the information provided in the FMLA poster. Here are some of the most important things you need to include:

1. Explain generally what FMLA leave is

FMLA provides eligible employees with job-protected leave for qualifying family and medical reasons. For private sector employers, FMLA is enforced by the U.S. Department of Labor’s Wage and Hour Division. Eligible employees can take up to 12 workweeks of FMLA leave in a 12-month period for certain qualifying reasons that include:

• The birth, adoption or foster placement of a child with the employee
• An employee’s own serious mental or physical health condition that makes the employee unable to work
• To care for the employee’s spouse, child or parent with a serious mental or physical health condition, and
• Certain qualifying reasons related to the foreign deployment of an employee’s spouse, child, or parent who is a military servicemember (Reference DOL Fact Sheet #28M(c) on this point)
• An eligible employee who is the spouse, child, parent, or next of kin of a covered servicemember with a serious injury or illness may take up to 26 workweeks of FMLA leave in a single 12-month period to care for the servicemember

Employees have the right to use FMLA leave in one continuous block of time. When it is medically necessary or otherwise permitted (i.e., you allow this as an employer), employees may take FMLA leave intermittently in separate blocks of time, or on a reduced schedule by working less hours each day or week.

2. Explain employee FMLA eligibility criteria  

Explain that employees must:

• Work for a covered employer 
• Have worked for their employer at least 12 months
• Have at least 1,250 hours of service for their employer during the 12 months immediately preceding their leave, and
• Have at least 50 employees within 75 miles of their work location

Tip: There are special rules for employees who do not have a fixed physical worksite, such as outside sales people or remote employees.

3. Explain how employees can request FMLA leave

Explain that employees must:

• Follow their employer’s normal policies for requesting leave
• Give notice at least 30 days before their need for FMLA leave, or, if advance notice is not possible, give notice as soon as possible
• Provide enough information to their employer (and/or their employer’s leave administrator) so they can determine whether the leave qualifies for FMLA protection. Employees do not have to share a medical diagnosis

Tip: Some states, such as California, prohibit employers from seeking medical diagnosis. Check with counsel on any state specific medical confidentiality rules that overlap with FMLA.

• Inform their employer if FMLA leave was previously taken or approved for the same reason when requesting additional leave
• Provide their employer any required certification from a health care provider to verify medical or caregiver leave or any required certification of a qualifying exigency

4. Explain the FMLA’s relationship with other laws

Explain that the FMLA does not affect any federal or state law prohibiting discrimination, or supersede any state or local law or collective bargaining agreement that provides greater family or medical leave rights. 

5. Explain your obligations to the employee as their employer

Explain that, if an employee is eligible for FMLA leave, as a company, you must:

• Allow the employee to take job-protected time off work for a qualifying reason
• Continue the employee’s group health plan coverage while the employee is on leave on the same basis as if the employee had not taken leave, and
• Allow the employee to return to the same job, or a virtually identical job with the same pay, benefits and other working conditions, including shift and location, at the end of the employee’s leave
• Not interfere with the employee’s FMLA rights or threaten or punish the employee for exercising their rights under the law. This includes not retaliating against the employee for requesting FMLA leave or cooperating with a WHD investigation. 

Explain that, after becoming aware that the employee’s need for leave is for a reason that may qualify under the FMLA, you must:

Confirm whether or not the employee is eligible for FMLA leave and provide written notice of:

• Any determination that an employee is eligible
• The employee’s FMLA rights and responsibilities, and 
• How much of the employee’s requested leave, if any, will be FMLA-protected leave. 

6. Provide employees additional information on ways they can exercise FMLA rights

• Provide employees the DOL’s telephone number (1-866-487-9243) and website URL (dol.gov/fmla) so they can find more information about FMLA.
• Tell employees they may file a complaint with the DOL’s Wage and Hour Division or file a private lawsuit against you in court if they believe their rights under the FMLA have been violated. 

As always, check with your legal counsel to ensure that your FMLA and other leave and accommodation policies fulfill all federal, state and local law requirements, and are fully aligned with your other employment policies and benefits. This checklist generally applies to private sector employers. Please note that there are special FMLA requirements for certain school employees, airline flight crew personnel, and employees covered by collective bargaining agreements.