Does an employee accrue leave while on Paid Family Leave (PFL)?

Yes, as long as the employee is in a positive pay status for the major portion of the month during which they took the PFL, they will accrue leave for that month.

For example, in August 2025, Employee A is on PFL for the entire month. Because PFL is paid, Employee A is considered to be in a positive pay status for the major portion of the month and will accrue leave. However, in August 2025, Employee B takes PFL for five workdays (5) days. The rest of that month, the employee is out for a non-PFL leave reason and takes leave without pay. Because Employee B was on a leave without pay status for the major portion of the month, Employee B will not accrue leave.

For more information, visit the State of Tennessee Attendance and Leave Manual.