There’s no one-size-fits-all approach to managing the FMLA. Some employers are building in-house teams, and supporting them with the right tech. Others are turning to third-party administrators (TPAs) to keep up with compliance and rising leave volume, from smaller employers to those with large, complex workforces.
For organizations at a tipping point, outsourcing leave management isn’t always about saving time. It can be a very practical move to reduce manual work, minimize compliance risk, and give employees a clearer, faster experience. According to MMA’s 2024 Benchmarking Report, more employers of all sizes are choosing to outsource leave management for regulatory reasons.
But handing off compliance work isn’t enough. Employers are now looking for FMLA partners who improve the overall leave experience: reducing back-and-forth, keeping HR teams aligned, and making it easier for employees to navigate the process from day one.
Why the FMLA experience matters
In the 2025 State of Leave and Accommodations Report, employees shared how much their leave experiences impacted their morale and retention. One respondent noted:
“My illness was a horrible experience, and my interactions with the third-party provider as well as my manager’s response made the whole thing much worse.”
Another shared a more supportive experience:
“My leave experience was smooth, with clear communication and support from the team.”
These two employee voices paint a clear picture. Outsourcing FMLA doesn’t automatically lead to better results. What matters is how the partner handles their processes, communicates with employees, and supports HR.
TPAs are showing what better can look like
Across the industry, third-party administrators are rethinking what it means to manage leave well. Many are using technology to reduce administrative work, stay compliant across jurisdictions, and deliver a better experience to both employers and employees.
Two TPAs, BBP Admin and Newfront, demonstrate how the right platform can support growth and deliver personalized service at scale.
BBP Admin scaled their client base by 733 percent with automation and flexibility
BBP Admin supports more than 100 employers across the U.S., many with multistate operations and complex leave programs. As demand grew, they needed a way to onboard new clients quickly while managing a rising volume of FMLA, ADA, and state leave cases.
By implementing AbsenceSoft’s centralized platform, BBP Admin’s team gained the automation and flexibility needed to manage this complexity at scale. Powered by the AbsenceSoft Compliance Engine™ (ACE), the team can:
- Build and maintain unique leave policies for each client
- Auto-generate compliant notices and forms using the ACE Packet Generator
- Provide employees with a self-service portal to request leave and upload documents
- Avoid asking for the same documentation more than once
This shift allowed BBP Admin to grow its client base by 733 percent. Just as important, they improved consistency and transparency across every case.
Newfront aligned leave operations with their high-touch client service model
Newfront, a modern insurance brokerage and HR services firm, wanted to offer leave management as a natural extension of their benefits support. But FMLA and ADA cases require structure, documentation, and timely communication that go beyond spreadsheets and shared inboxes.
With AbsenceSoft, Newfront built a tech-enabled leave program that fits their consulting model and grows with client demand. They now have the ability to:
- Centralize and standardize leave intake across employers
- Provide real-time case updates to HR teams
- Customize workflows to reflect each client’s internal structure
- Control access to protect sensitive client data
AbsenceSoft gives Newfront the tools to offer leave as a compliant, high-value service. By reducing administrative burden, Newfront is better positioned to focus on what matters most: supporting clients and delivering a consistent, high-touch experience.
Choosing a partner who is ready for what comes next
Employers outsource leave for many reasons. Some are growing quickly and need help keeping up. Others want to ensure consistency across states or locations. Many are simply overwhelmed by the complexity of the FMLA, ADA, PWFA, and an ever-increasing list of state and local leave laws.
This rising complexity has driven many mid-sized employers to seek outside help. According to Marsh McLennan Agency, about 70% of businesses with 500 to 1,000 employees now outsource their leave programs entirely or manage them with a hybrid approach.
That demand creates opportunity. It also raises expectations. Employers aren’t just looking for basic administration. They need partners who can deliver scalable, compliant, employee-centered support.
Strong TPA partners don’t just bring legal knowledge or staffing capacity. They bring the ability to configure workflows to streamline case management, track eligibility accurately, and keep everyone informed and supported throughout the leave process. That includes HR, employees, and managers.
Technology is at the core of this. BBP Admin and Newfront have shown how the right system can accelerate onboarding, improve clarity, and create a more consistent experience across clients.
TPAs are leading the way toward smarter outsourcing
Today’s leading TPAs are combining compliance expertise with configurable platforms that reduce manual work, improve accuracy, and enhance the employee experience. They are building systems that feel more personal and more transparent, while still meeting the complex compliance needs of modern employers.
Ready to find the right partner? Contact us at tpareferrals@absencesoft.com to get a technology-backed TPA that’s right for your business.