Research has shown that psychological detachment from work during nonwork time is an important recovery experience and is crucial for employee well-being. Integrating research on job-stress recovery with research on leadership and employee mental health and well-being, this study examines how a leader’s psychological detachment from work during nonwork time directly relates to subordinate psychological detachment from work and indirectly to employee exhaustion and need for recovery. Based on self-report data from 137 employees and their supervisors, this study revealed that leader psychological detachment was related to subordinate psychological detachment and that leader psychological detachment was indirectly related to low subordinate exhaustion and low subordinate need for recovery, also when controlling for negative affectivity and leader-member-exchange. Overall, this study demonstrates that leaders might have an impact on subordinate strain symptoms not only via leadership behavior at work but also via detachment processes during leisure time. These findings suggest that employee recovery processes might not only be regarded as an individual phenomenon, but could be seen as embedded in the larger organizational context.