By Christina Santillo, SHRM-CP, Senior Human Resources Consultant
When employees take time off to bond with a new child after birth or adoption, they typically rely on a combination of FMLA, which is unpaid, and available PTO or vacation time. This often raises an important question for employers: Should we offer parental leave, and how does it differ from maternity or paternity leave?
Understanding FMLA
The Family and Medical Leave Act (FMLA) generally applies to employers with fifty (50) or more employees. It provides eligible employees with up to 12 weeks of job-protected, unpaid leave. Employees may receive compensation during an FMLA leave if the employee uses accrued PTO or some other paid benefit, such as short-term disability or one of the paid leaves discussed below, concurrently with their FMLA leave.
Maternity & Paternity Leave vs. Parental Leave
Traditionally, employers offered separate maternity and paternity leave policies. However, the best practice has shifted toward offering parental leave, which is gender-neutral and focused on bonding with a new child.
Differentiating benefits by gender, such as offering more time to mothers than fathers, can create risk of discrimination claims. Offering a single parental leave policy promotes fairness, consistency, and compliance while supporting all caregivers equally.
Unlike FMLA, these types of leave are frequently paid, making them a valuable benefit employers can offer to support their workforce.
Why Offer Parental Leave?
Offering parental leave can provide meaningful benefits for employers including:
- Improved recruitment and retention
- Increased employee morale and engagement
- Stronger employer brand and ability to attract top talent
While parental leave is not legally required at the federal level, it is increasingly viewed as a competitive and employee-friendly benefit.
How Much Parental Leave Should You Offer?
There is currently no federal law requiring paid parental leave, though several states offer paid family leave through state-run insurance programs. Employers should also be mindful of state-specific requirements when designing leave policies.
In practice, we often see:
- Small employers offering 1–2 weeks (40–80 hours) of paid parental leave
- Larger organizations offering more generous leave benefits
The appropriate amount depends on company size, budget, and workforce needs.
Parental Leave vs. Medical Recovery
It’s important to distinguish between bonding time and medical recovery as far as how employees may get paid while on these leaves. Parental leave is intended for bonding with a new child. Employees who need time to recover from childbirth typically receive compensation under short-term disability, not parental leave, if such coverage is offered.
A well-designed parental leave policy supports employees during a major life event while helping employers stay competitive and reduce risk. As expectations around workplace benefits continue to evolve, reviewing and updating leave policies is an important step for employers of all sizes.
If you are an employer with questions about parental leave policies or if you have questions about any HR issue, contact our Risk Management Division by phone at 855-873-0374 or by email at . We will be happy to help!
Disclaimer: This information is for informational purposes only and not for the purpose of providing legal advice. This article does not create an attorney-client relationship between Keystone’s Risk Management Division and the reader.