Why a No-Fault Attendance Policy May Cause Problems for Your HR Consulting Strategy

(And what to do instead)

If you’ve ever tried to simplify how your company handles absences, you might’ve come across the idea of a no-fault attendance policy. On the surface, it sounds perfect: clear rules, no drama, and everyone treated the same.

But here’s the thing—running a business is rarely that simple. And when it comes to managing people, those black-and-white policies can turn into a gray area really fast.

Let’s take a closer look at what no-fault attendance policies are, why businesses tend to use them, and why they may be doing more harm than good. More importantly, we’ll talk about what you can do instead to keep your team engaged, your business protected, and your sanity intact.

What Is a No-Fault Attendance Policy?

It’s pretty straightforward: employees get a certain number of “points” for absences. Doesn’t matter why they’re out—sick day, flat tire, family emergency—it all counts the same. Rack up too many points, and they’re out.

Think of it like a punch card for attendance, except once it’s full, the job’s on the line.

While it might sound fair on paper, in real life it often feels cold, impersonal, and even unfair.

Why Do Businesses Use Them?

A lot of companies, especially in fast-moving industries like retail or manufacturing, like the idea of consistency. No playing favorites. No confusion. Just a clear system everyone follows.

And when you’ve got shifts to fill and a lean team, structure matters.

But here’s the issue: not all absences are created equal. And when you treat every situation the same, the system starts to break down.

When “Fair” Doesn’t Feel Fair

Let’s say one employee calls out because their kid is in the ER. Another just didn’t set their alarm. Same outcome in the policy—but not the same story.

Over time, people start to feel like the company doesn’t care about what they’re actually going through. That can lead to frustration, burnout, and even resentment.

And it’s not just a culture issue—it can also create legal risks. No-fault policies don’t always play well with laws like the Family and Medical Leave Act (FMLA) or the Americans with Disabilities Act (ADA). If someone has a chronic health issue and needs time off, those points could land you in hot water.

This is where INFINITI HR helps you stay ahead of the curve. We don’t just enforce policies—we build better ones. Ones that are compliant, flexible, and designed to keep both your business and your people protected. Learn more about how our HR services keep you compliant at https://www.infinitihr.com/solutions/risk-management/.

Real Costs: Turnover, Engagement, and Legal Risk

The Real Cost of Getting It Wrong

Let’s talk about impact.

Gallup says U.S. businesses are on track to lose $1 trillion to voluntary turnover by 2025. Why do people leave? A big reason is that they don’t feel valued or supported.

According to a 2024 study by Indeed, turnover can hit small and mid-sized businesses especially hard. Replacing just one employee can cost between 1.5 to 2 times their annual salary—not to mention the time and productivity you lose while trying to hire and train someone new.

And here’s the ironic part: while no-fault attendance policies are supposed to cut down on absences, they often end up pushing people out the door—people who might’ve stayed if the company showed a little more flexibility.

The truth is, employees stick around when they feel trusted, supported, and like they’re growing. That same study found that businesses investing in their team’s development actually see lower turnover and better long-term retention.

At INFINITI HR, we help business owners design policies that reduce turnover and drive loyalty. Our scalable HR services support everything from hiring to benefits to career development—so you get more than just compliance. You get a strategy. Check it out here.

What You Can Take Away

• • No-fault attendance policies might seem like an easy fix, but they often create bigger problems. 
  • They can hurt morale, increase turnover, and even put you at legal risk. 

• With INFINITI HR, you don’t just get an attendance policy—you get a real strategy to support your business and your people.

You’ve got enough on your plate as a business owner. Let us help you take the guesswork out of attendance, compliance, and everything HR.

Let’s create policies that actually work—for everyone.

Interested in other current employment trends? Click the link to view the recent blog: What Basketball Can Teach HR Consulting Services: Workplace Lessons from the Court, or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.