Why SMBs are Moving Away from Unum & Sedgwick: In-House FMLA Tracking vs. Outsourcing
Compare the high costs and delays of outsourcing FMLA to Unum/Sedgwick vs automating leave tracking in-house with modern HR software. Read 2026 compliance guidelines.
For U.S. employers and small-business HR teams.
Managing leaves of absence under the Family and Medical Leave Act (FMLA) is one of the most resource-intensive challenges U.S. small and mid-sized employers face. To escape the paperwork, many growing organizations outsource their leave management to large Third-Party Administrators (TPAs) or insurance carriers like Unum, Sedgwick, The Hartford, and MetLife.
However, in 2026, a growing number of U.S. employers are abandoning these outsourcing giants to bring FMLA administration back in-house.
Let's analyze why outsourcing FMLA often fails for SMBs, how TPA pricing models work, and why self-tracking using automated compliance tools is becoming the preferred strategy.
The Hidden Friction of FMLA Outsourcing
Sources and review notes
This article is written for U.S. small-business HR teams in 2026 and should be checked against your own policy, state requirements, and counsel guidance before use in a contested employment decision. AI SoloHR provides workflow structure, reviewed drafting support, and educational resources; it does not provide legal advice or make final employment decisions.
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