diff --git a/pkg/sharding/leases/doc.go b/pkg/sharding/leases/doc.go
new file mode 100644
index 00000000..0bbe05d2
--- /dev/null
+++ b/pkg/sharding/leases/doc.go
@@ -0,0 +1,19 @@
+/*
+Copyright 2023 Tim Ebert.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package leases implements logic for determining the state of shards based on their membership Lease object.
+// It is used by the shardlease controller to maintain the state label.
+package leases
diff --git a/pkg/sharding/leases/shards.go b/pkg/sharding/leases/shards.go
new file mode 100644
index 00000000..b918af5f
--- /dev/null
+++ b/pkg/sharding/leases/shards.go
@@ -0,0 +1,79 @@
+/*
+Copyright 2023 Tim Ebert.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package leases
+
+import (
+	"k8s.io/utils/clock"
+
+	coordinationv1 "k8s.io/api/coordination/v1"
+)
+
+type Shard struct {
+	ID    string
+	State ShardState
+	Times Times
+}
+
+type Shards []Shard
+
+func (s Shards) ByID(id string) Shard {
+	for _, shard := range s {
+		if shard.ID == id {
+			return shard
+		}
+	}
+
+	return Shard{}
+}
+
+func (s Shards) AvailableShards() Shards {
+	var shards Shards
+	for _, shard := range s {
+		if shard.State.IsAvailable() {
+			shards = append(shards, shard)
+		}
+	}
+
+	return shards
+}
+
+func (s Shards) IDs() []string {
+	ids := make([]string, len(s))
+	for i, shard := range s {
+		ids[i] = shard.ID
+	}
+
+	return ids
+}
+
+func ToShards(leases []coordinationv1.Lease, cl clock.PassiveClock) Shards {
+	shards := make(Shards, 0, len(leases))
+	for _, lease := range leases {
+		l := lease
+		shards = append(shards, ToShard(&l, cl))
+	}
+	return shards
+}
+
+func ToShard(lease *coordinationv1.Lease, cl clock.PassiveClock) Shard {
+	times := ToTimes(lease, cl)
+	return Shard{
+		ID:    lease.GetName(),
+		Times: times,
+		State: toState(lease, times),
+	}
+}
diff --git a/pkg/sharding/leases/state.go b/pkg/sharding/leases/state.go
new file mode 100644
index 00000000..7958ceec
--- /dev/null
+++ b/pkg/sharding/leases/state.go
@@ -0,0 +1,102 @@
+/*
+Copyright 2023 Tim Ebert.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package leases
+
+import (
+	"k8s.io/utils/clock"
+
+	coordinationv1 "k8s.io/api/coordination/v1"
+)
+
+type ShardState int
+
+const (
+	// Unknown is the ShardState if the Lease is not present or misses required fields.
+	Unknown ShardState = iota
+	// Orphaned is the ShardState if the Lease has been in state Dead for 1 minute.
+	Orphaned
+	// Dead is the ShardState if the Lease is Uncertain and was successfully acquired by the sharder.
+	Dead
+	// Uncertain is the ShardState if the Lease has expired more than leaseDuration ago.
+	Uncertain
+	// Expired is the ShardState if the Lease has expired less than leaseDuration ago.
+	Expired
+	// Ready is the ShardState if the Lease is held by the shard and has not expired.
+	Ready
+)
+
+func (s ShardState) String() string {
+	switch s {
+	case Orphaned:
+		return "orphaned"
+	case Dead:
+		return "dead"
+	case Uncertain:
+		return "uncertain"
+	case Expired:
+		return "expired"
+	case Ready:
+		return "ready"
+	default:
+		return "unknown"
+	}
+}
+
+func StateFromString(state string) ShardState {
+	switch state {
+	case "orphaned":
+		return Orphaned
+	case "dead":
+		return Dead
+	case "uncertain":
+		return Uncertain
+	case "expired":
+		return Expired
+	case "ready":
+		return Ready
+	default:
+		return Unknown
+	}
+}
+
+// IsAvailable returns true for shard states that should be considered for object assignment.
+func (s ShardState) IsAvailable() bool {
+	return s >= Uncertain
+}
+
+func ToState(lease *coordinationv1.Lease, cl clock.PassiveClock) ShardState {
+	return toState(lease, ToTimes(lease, cl))
+}
+
+func toState(lease *coordinationv1.Lease, t Times) ShardState {
+	// check if lease was released or acquired by sharder
+	if holder := lease.Spec.HolderIdentity; holder == nil || *holder == "" || *holder != lease.Name {
+		if t.ToOrphaned <= 0 {
+			return Orphaned
+		}
+		return Dead
+	}
+
+	switch {
+	case t.ToUncertain <= 0:
+		return Uncertain
+	case t.ToExpired <= 0:
+		return Expired
+	}
+
+	return Ready
+}
diff --git a/pkg/sharding/leases/times.go b/pkg/sharding/leases/times.go
new file mode 100644
index 00000000..a41c7a92
--- /dev/null
+++ b/pkg/sharding/leases/times.go
@@ -0,0 +1,64 @@
+/*
+Copyright 2023 Tim Ebert.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package leases
+
+import (
+	"time"
+
+	"k8s.io/utils/clock"
+
+	coordinationv1 "k8s.io/api/coordination/v1"
+)
+
+const (
+	defaultLeaseDuration = 15 * time.Second
+	leaseTTL             = time.Minute
+)
+
+type Times struct {
+	Expiration    time.Time
+	LeaseDuration time.Duration
+
+	ToExpired   time.Duration
+	ToUncertain time.Duration
+	ToOrphaned  time.Duration
+}
+
+func ToTimes(lease *coordinationv1.Lease, cl clock.PassiveClock) Times {
+	var (
+		t               = Times{}
+		now             = cl.Now()
+		acquireTime     = lease.Spec.AcquireTime
+		renewTime       = lease.Spec.RenewTime
+		durationSeconds = lease.Spec.LeaseDurationSeconds
+	)
+
+	if acquireTime == nil || renewTime == nil || durationSeconds == nil {
+		t.Expiration = now
+		t.LeaseDuration = defaultLeaseDuration
+	} else {
+		t.LeaseDuration = time.Duration(*durationSeconds) * time.Second
+		t.Expiration = renewTime.Add(t.LeaseDuration)
+	}
+
+	t.ToExpired = t.Expiration.Sub(now)
+	t.ToUncertain = t.ToExpired + t.LeaseDuration
+	// ToOrphaned only applies, if lease is released or acquired by sharded
+	t.ToOrphaned = t.ToExpired + leaseTTL
+
+	return t
+}