Organizational Wellness

Parental Leave: Everything HR Needs to Know in 2024

Last Updated Nov 4, 2024

Time to read: 15 minutes

When it comes to expanding a family, a parental leave policy can make a big difference in your worker's lives. The opportunity to take time away from work, be free from all job-related responsibilities, and bond with a newborn or adopted child is truly priceless. However, not all companies offer parental leave benefits.

Fewer than 30% of employees have access to a paid parental leave program through their employer, according to a 2023 Bureau of Labor Statistics survey of workplace benefits. The same study noted that nearly 90% of workers have access to unpaid parental leave. That means over 70% of the U.S. workforce must go without pay if they take time off work to bond with new children.

Here's a look at parental leave from an HR perspective and how offering parental benefits can distinguish your organization and potentially attract top talent.

What Is Parental Leave?

Parental leave is a benefits policy that allows parents to take time away from work to care for newborns or adopted children. Employers that offer parental leave enable parents to take extended time from work without worry that they'll lose their position. Sometimes, employees receive a partial or full salary during their time away from work, depending on the employer's policies and applicable laws.

Parental leave programs give new parents time to bond with new children, adjust to their new living situation, and establish a care framework once they return to the workplace.

The Business Benefits of Parental Leave

Why offer parental leave? There are clear benefits to doing so.

Companies that offer parental leave don't need to invest in hiring and training a new employee to take over the worker's role, which can be significant. This can amount to up to $28,000 in hard costs, according to the Society for Human Resource Management (SHRM). They retain the employees' skill set and knowledge by allowing the workers to take the necessary leave and welcoming them back.

Another advantage is increased employee productivity and higher job satisfaction. Workers may feel better supported by organizations offering parental leave, leading to greater contentment in their roles.

Offering parental leave can set your organization apart in the benefits department. Since just a small portion of companies provide it, you may find it easier to attract talented employees. In particular, mid-career professionals focused on growing their families, according to Business Insider.

Some companies say offering paid parental leave even boosts revenue growth, especially among emerging companies. They also see less frequent turnover among new parents.

A Columbia Business School study of New York's newly implemented Paid Leave Policy found that new parental leave policies didn't adversely impact employers in the least. In fact, introducing the Paid Leave Policy made it easier to standardize leave processes across HR departments.

U.S. Parental Leave Laws You Should Know

There are several existing federal and state regulations concerning parental leave. The Family and Medical Leave Act (FMLA) is the most ubiquitous, which offers eligible workers 12 weeks of unpaid leave to care for newborns and adopted or foster children. Most employees who opt for FMLA take time off in one block. But some exceptions allow certain workers to reduce their hours temporarily or vary their leave days.

To qualify for FMLA, an employee must work for a covered employer for at least 12 months, with a minimum of 1,250 working hours. Covered employers under the FMLA include those with at least 50 workers, public and private elementary and secondary schools, and public or governmental agencies.

The Federal Employee Paid Leave Act (FEPLA) is a more recent federal parental leave law. It gives civilian federal government employees up to 12 weeks of paid parental leave. This is provided they have at least 12 months of service and agree to return to work following the leave program for a minimum of 12 weeks. Employees who use their leave under FEPLA must claim FMLA at the same time. Workers can't use FEPLA for 12 weeks and request additional leave through FMLA.

Multiple states have enacted parental leave laws. Here's a breakdown of the states offering paid parental leave and their available benefits.

State/District	Parental Leave Benefits
California	Provides up to 60% to 70% of weekly wages earned over the past five to 18 months to care for a new child. Benefits last up to eight weeks. Claimants may be able to combine FMLA with California's leave to secure job protection.
Colorado	Allows up to 12 weeks annually to care for and bond with a new child. Paid leave amounts vary depending on the state's average weekly wages and the individual's average earnings. An additional four weeks of leave may be available for people with pregnancy and childbirth complications.
Connecticut	Offers up to 12 weeks of paid leave to care for a new child. Claimants may qualify for job protection under FMLA.
Delaware	Gives up to 12 weeks of paid leave to care for a new child, with a maximum weekly benefit cap of $900. Delaware's program was signed into law in 2022, but employees can't start claiming benefits until 2026.
Washington, D.C.	Allows up to 12 weeks of paid leave to bond with a child and two weeks of paid leave during pregnancy.
Illinois	Requires employers to offer a minimum of 40 hours of paid leave annually. Employees can use the paid leave for various purposes, including caring for a child.
Maine	Offers employees up to 12 weeks of paid leave to care for a new child. Maine's Paid Family and Medical Leave (PFML) program was signed into effect in 2023, but employees can't start claiming benefits until May 2026.
Massachusetts	Provides up to 12 weeks of job-protected, paid family leave to care for a new child. Employees may also be eligible for up to 20 weeks of job-protected paid medical leave, with a maximum cap of combined paid leave of 26 weeks annually.
Minnesota	Offers partial wage replacement for 12 to 20 weeks to bond with a new child. Benefits become available beginning in January 2026.
New Hampshire	A voluntary program that offers up to six weeks of paid leave to care for a new child. Benefits are up to 60% of the worker's average wages.
New Jersey	Offers up to 12 weeks of paid leave to care for a new child. Benefits are calculated based on the employee's average weekly earnings, with a maximum benefit of $1,055 weekly in 2024.
New York	Provides up to 12 weeks of job-protected, paid time off. Benefits are calculated based on state and individual average weekly wages, with a maximum benefit of $1,151.16 in 2024.
Oregon	Offers up to 12 weeks of job-protected paid leave to care for a child. Benefits are equal to a percentage of the employee's average weekly wages.
Vermont	Provides up to 6 weeks of paid leave for state employees. Benefits are equal to 60% of the employee's pre-leave weekly wages. Beginning in July 2025, employees working for private employers may receive paid leave with between 60%-70% of wage replacement. The new program for private employers is voluntary, with benefit durations ranging from six to 26 weeks.
Washington	Offers up to 12 weeks of paid leave to care for a new child. Benefits are up to 90% of weekly wages, with a maximum cap of $1,456 in 2024.

Other states have also introduced new parental leave bills and programs. It's important to monitor new and current legislation that may apply to your business.

Tips for Designing a Strong Parental Leave Policy

If you're interested in offering parental leave at your organization, you'll want to create a fair policy that aligns with business and employee needs. Here are a few steps to get started.

Determine Who's Eligible

Most parental leave laws apply to natural and adoptive parents. Some regulations also recognize new foster parents. However, you'll want to consider other potential circumstances, such as step-parents, gender-neutral individuals, and same-sex partners.

In some cases, both parents may work for your organization. You'll need to decide if you'll allow both of them to access your benefits or take another approach. One option might be staggering benefits where one parent works while the other is on leave.

Another factor is how long an employee must work for you before they can start receiving benefits. Under FMLA, parents must work for at least one year with an employer before they are eligible for leave. However, you might set a shorter qualification period for your internal parental leave policy.

Decide How Much Paid Leave You Can Provide

While some states have specific requirements for paid parental leave time that employers must comply with, not all do. If your business is in a state that doesn't have a set paid parental leave policy, you have some flexibility. For instance, you might offer paid parental leave for the standard 12 weeks or a shorter timeframe that aligns with your objectives and financial resources.

If offering extended paid leave isn't an option, you might consider offering flex time. For instance, your employees might benefit from switching to a hybrid or part-time schedule as they adjust to their new parental responsibilities. Flexible options may reduce the employee's childcare costs and allow bonding time while keeping them in the loop at your workplace.

Ask Your Employees What They Want in a Parental Leave Policy

Employees are an excellent source of feedback, especially when it comes to your benefits package. Consider distributing an anonymous survey among workers and asking them which features they would prefer in a parental leave policy if your organization were to offer one. Your workers may have a few unique ideas you haven't considered that can help you better tailor your policy to suit their needs.

Assess Other Company's Parental Leave Plans

Another resource that can help you structure a parental leave plan is your competitor's offerings. Look at what other companies in your industry provide parental leave and the structure of their plan. Establishing a plan that aligns with or offers greater benefits may help your organization stand out among job seekers.

Consider Other Parental Benefits

Some companies supplement parental leave with other benefits, such as assistance with childcare. For instance, you might partner with a third party to assist in helping your workers connect with childcare providers or provide a backup resource if their regular carer is unavailable. Another option is offering a Dependent Care Flexible Spending Account (DCFSA), which allows employees to set aside some of their pre-tax earnings that they can use for childcare expenses.

How to Support Employees During Their Leave

Going on extended parental leave may cause mixed feelings among employees. On one hand, welcoming a new child is the experience of a lifetime. But parents may worry that their absence can hurt career progression opportunities.

To alleviate concerns and demonstrate support for new parents, consider having a conversation before their leave begins. During the meeting, you might communicate your workplace policies and explain the benefits available to them through the FMLA, state regulations, and internally. You can also address any worries they have about their job while they're on leave.

It's a good idea to ask employees to document their responsibilities and duties so you can establish a transition plan while the worker is away. If your available employees can't take on the entire workload, you might consider bringing on temporary help to fill in the gaps.

Ways to Help Employees Return From Leave

Coming back from work after a major life event, like childbirth or adoption, is no easy task. New parents may experience emotional and physical changes that disrupt their regular work routines. It's not uncommon for parents to experience increased anxiety or hormonal changes that disrupt their moods. New babies may not sleep through the night, so your employees may be more tired than usual as they don't get their regular eight hours of sleep.

Parents may also struggle with finding suitable childcare arrangements, which will increase their stress. If there have been any major organizational changes, such as variations in staff or increased work responsibilities, they may need time to adjust to those, too.

You can support your employee's return to the workplace by considering their needs. For instance, during their first week back at work, you might give them time to reconnect with their supervisors and colleagues so they know what they missed while they were gone. That gives your employees the chance to catch up without jumping right into their normal tasks.

Some employers offer new parents specialized benefits to assist in the re-acclimation period. For instance, you might give your workers additional flexibility, such as an earlier or later start time or options to work from home a few days a week. Flexible scheduling provides employees with more control over their time and can help them align childcare needs. Another option is a holistic wellbeing program that promotes physical and mental health, such as Wellhub's plans.

3 Ways to Measure the Success of Your Parental Leave Program

Once you implement a new parental leave program, keeping a finger on the pulse of the results is a good idea. That way, you'll know whether it's working or needs some tweaking. Here are a few strategies you can use to track its performance.

Ask for Direct Feedback

One of the best ways to learn how employees feel about your parental leave benefits is simply to ask them. You might sit down with new parents and ask what they think about your parental program once they return to work. Did it meet their expectations or fall short in some way? You can ask for suggestions that might help you improve.

Conduct an Anonymous Survey

Employee surveys help you collect valuable insights into your worker's thoughts concerning your benefits program. If you make the survey anonymous, employees may feel more comfortable sharing their opinions. You can use the survey to ask what employees think about the new parental policy, whether they plan on using it, and if there are potential ways you might improve it.

Set Up Metrics To Evaluate Whether the Parental Leave Program Meets Your Organization's Objectives

Your company probably has a few goals it's hoping to achieve through parental leave, such as attracting new talent, increasing worker retention, or boosting employee engagement and job satisfaction. Try setting specific metrics to help you evaluate whether your leave plan fulfills your objectives. Then, benchmark performance at the time of implementation compared with future periods. That way, you'll have hard data to evaluate the new policy's effectiveness.

Good Benefits Set Your Business Apart

New parents often struggle to balance their work with an onslaught of new family responsibilities, especially in the first weeks after welcoming a new child. By offering parental leave, you can demonstrate your organization's support and celebrate their latest life milestone.

Before integrating parental leave into your benefits package, take care to understand existing federal, state, and local laws. Some regulations may impact the benefits you offer, giving you the opportunity to expand upon them by offering additional perks, such as a wellbeing program.

A wellbeing program can support new parents through physical and workplace wellness benefits. Wellhub's wellbeing programs align quite well with a parental leave benefits program, including access to fitness training, emotional support tools, and mindfulness apps. To learn more about Wellhub's wellness programs, connect with a wellbeing specialist today.

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!

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References:

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