Sedgwick, the world’s leading risk and claims administration partner, has published its latest Workforce Absence and Disability Trends Report, highlighting key trends from 2025 and offering forward-looking predictions for 2026. The report examines shifting regulations, emerging technologies, and evolving employee expectations that are redefining absence management and the future of work.

The findings provide HR leaders and executives with timely insights to navigate growing compliance complexity and workforce challenges. Sedgwick’s experts contributed trends and predictions designed to help organizations adapt to political, regulatory, and technological change.

Key focus areas include evolving Department of Labor (DOL) priorities, compliance under the Family and Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA), the rise of AI in benefits administration, escalating mental health-related absences, and modern approaches to return-to-work strategies.

“Today’s rapidly changing and increasingly complex environment requires employers to stay agile and informed,” said Marwan Shiblaq, President of Workforce Absence at Sedgwick. “Our new report is designed to help organizations prepare for the industry conversations shaping the current employment landscape.”

Top Workforce Absence Trends from 2025

• Evolving generational workforce needs: Employees increasingly expect flexible benefits that address diverse life stages and support holistic wellbeing.
• AI adoption: Advanced technologies are improving efficiency across benefits and absence management, while also introducing new operational and compliance risks.
• Rising mental health concerns: Stress, anxiety, and burnout have become leading drivers of employee absence, impacting productivity across sectors.
• Rethinking return to work: Flexible work arrangements mean returning to the office is now just one of several recovery and reintegration options.

Expert Predictions for 2026

Sedgwick’s experts outline several developments expected to shape workforce absence and disability management in the year ahead:

• More federal regulation: While some agencies face reduced authority, upcoming midterm elections could shift the regulatory balance of power.
• Expansion of paid family and medical leave (PFML): In the absence of a federal mandate, more states and municipalities are expected to implement mandatory paid leave programs.
• Changes to the Pregnancy Workers Fairness Act: Abortion-related provisions are likely to be removed, with pregnancy-related definitions narrowed.
• New frontiers in AI: Data-driven insights may enable more proactive absence management, better forecasting, and earlier intervention strategies.

“Regulatory developments won’t wait, and neither should employers looking to stay ahead of the curve,” said David Setkzorn, SVP and Workforce Absence and Disability Practice Leader at Sedgwick. “Our unmatched perspective helps organizations turn uncertainty into clarity.”

Looking Ahead

Sedgwick’s contributing experts will continue to monitor workforce absence trends, regulatory updates, and emerging risks throughout the year. The report is intended as a living resource to help employers remain compliant, protect resources, and support a thriving workforce.

For more insights and access to the full report, visit the Sedgwick website.