Should we allow employees to use sick time for a “mental health day”

December 16, 2025

Yes—organizations should allow employees to use sick time for mental health days, and in many cases, this practice is not only recommended but may also be required by law, depending on the jurisdiction in which you operate. Mental health is a critical component of overall health, and conditions such as stress, anxiety, depression, and burnout can impair an employee’s ability to function just as significantly as physical illnesses like the flu or a migraine.

While mental health conditions are not contagious, their impact on focus, decision-making, energy levels, and interpersonal interactions can be substantial. Allowing employees the flexibility to take time off when they are struggling mentally gives them the opportunity to rest, reset, and seek support if needed. This proactive approach can help prevent more serious or long-term issues, such as chronic burnout, extended leaves of absence, or even turnover.

From a business perspective, supporting mental health days can lead to higher productivity and engagement over time. Employees who feel trusted and supported are more likely to return to work refreshed, motivated, and able to perform at their best. In contrast, discouraging time off for mental health concerns may lead to presenteeism—where employees are physically present but mentally disengaged—which can be more costly than a day of absence.

Encouraging the use of sick time for mental health also sends a powerful cultural message. It demonstrates that the organization values employee well-being and recognizes mental health as a legitimate health concern. This approach helps reduce stigma, fosters open communication, and builds trust and loyalty between employees and management. Ultimately, normalizing mental health days contributes to a healthier, more resilient workforce and a more sustainable workplace culture.

For employers navigating these policies, partnering with a Professional Employer Organization (PEO) can be especially valuable. A PEO like PBS PEO provides expert HR guidance on compliant sick leave policies, state and local requirements, and best practices for supporting employee well-being. With a PEO, you gain access to HR professionals who help you design clear, legally compliant policies and train managers to handle sensitive situations appropriately—allowing you to support your employees while minimizing risk and administrative burden.