New report reveals key patterns and offers forward-looking predictions for HR leaders
MEMPHIS, Tenn., Jan. 29, 2026 – Sedgwick, the world’s leading risk and claims administration partner, has published new Workforce Absence and Disability Trends Report highlighting key trends from 2025 and offering predictions for 2026, including shifting regulations and the impact of emerging technology on absence management and the future of work. The findings offer a forward-looking perspective for HR leaders as they navigate complex compliance challenges and evolving employee expectations.
In preparing the report, Sedgwick sourced trends and predictions from the company’s top experts, with a focus on guiding organizations through emerging risks in the workforce absence landscape. The insights were published to help employers in adapting to political and regulatory changes, such as shifting Department of Labor (DOL) priorities and compliance rules under the Family and Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA). Additionally, the report serves as a guide in navigating AI implementation, escalating mental health claims, new strategies for return to work policy, and much more.
“Today’s rapidly changing and increasingly complex environment requires employers to stay agile and informed,” said Marwan Shiblaq, Sedgwick’s President of Workforce Absence. “Executives and HR leaders have to make smart choices about their disability and leave plans, policies, and how they take care of their workforce. Our new report is designed to help organizations prepare for the industry conversations shaping the current employment landscape.”
According to the report, among the top trends from 2025 are:
- Evolving generational workforce needs: Employees today expect robust, flexible benefits that address a range of life circumstances and consider holistic wellness.
- AI adoption: Across the employee benefits spectrum, advanced technology is reshaping processes and improving efficiency but may introduce additional risks.
- Rising mental health concerns: Mental health has become a leading driver of employee absence, with stress, anxiety, and burnout affecting productivity across industries.
- Rethinking return to work: With today’s flexible work options, coming back to the office following leave is just one of many recovery solutions.
Sedgwick experts’ top predictions for 2026 include:
- More federal regulation: Many agencies have received less funding and had their regulatory authority diminished by courts. But with key congressional and gubernatorial seats on the ballot in this year’s midterm elections, the balance of power may shift.
- Expansion of paid family and medical leave (PFML): In the absence of a federal mandate, states and municipalities are working to implement jurisdictional PFML. In the next two years, we could see 17 states with mandatory paid leave, with others allowing insured programs through carrier providers.
- Changes to the Pregnancy Workers Fairness Act: The abortion provisions will likely be removed and pregnancy-related definitions narrowed.
- New frontiers in AI: Data-driven insights could transform absence management, enabling proactive interventions and better forecasting.
“Regulatory developments won’t wait, and neither should employers looking to stay ahead of the curve,” said David Setkzorn, Sedgwick SVP and Workforce Absence and Disability Practice Leader. “The Sedgwick team of disability and absence experts continually tracks changes in federal, state, and local rules and provides actionable insights that turn uncertainty into clarity. Our unmatched perspective helps organizations navigate the unexpected, so they can stay compliant, safeguard resources, and keep employees thriving.”
The trends, predictions and data in the workforce absence report will be monitored by the company’s contributing experts throughout the year. For more on the full report, visit the Sedgwick website.
About Sedgwick
Sedgwick is the world’s leading risk and claims administration partner, helping clients thrive by navigating the unexpected. The company’s expertise, combined with the most advanced AI-enabled technology available, sets the standard for solutions in claims administration, loss adjusting, benefits administration and product recall. With over 33,000 colleagues and 10,000 clients across 80 countries, Sedgwick provides unmatched perspective, caring that counts, and solutions for the rapidly changing and complex risk landscape. Sedgwick’s majority shareholder is The Carlyle Group; Stone Point Capital LLC, Altas Partners, CDPQ, Onex and other management investors are minority shareholders. For more, see sedgwick.com.
