Parental leave is a period of authorized absence from work that allows parents to care for and bond with a newborn, adopted child, or foster child. It is typically offered to both mothers and fathers and may be paid or unpaid, depending on the employer or government policies.
Who can take parental leave?
Who can take parental leave depends on each employer’s policy and relevant laws, which vary by jurisdiction.
When offered as part of an employee benefits package, parental leave is typically available to eligible employees who meet certain criteria, which often include being a full-time employee or having worked for the company for a certain tenure. Generally, new parents—including those caring for a newborn child, newly adopted child, or foster child—are entitled to some form of parental leave. Leave programs are designed to give parents time to bond with their child and manage the early stages of parenthood.
Parental leave vs. maternity leave
Parental leave applies to both parents, allowing either or both parents to take time off to care for a child. Maternity leave, on the other hand, specifically refers to leave taken by new mothers to recover from childbirth and bond with their child.
While maternity leave is often exclusively for women, parental leave is a broader benefit available to all new parents, regardless of gender.
Parental leave vs. paternity leave
Paternity leave refers specifically to time off granted to fathers or non-birth parents following the birth, adoption, or fostering of a child. In some companies or countries, paternity leave may be a separate entitlement from parental leave, and fathers may have access to one or both.
Types of parental leave
Leave entitlements for parents can vary by country, employer, and individual circumstances. Some parents may be eligible for paid parental leave, while others may only have access to unpaid leave.
Paid parental leave
Paid parental leave allows parents to take time off while continuing to receive partial or full pay. The availability and duration of leave benefits depend on the employer’s policies or government regulations. Some countries mandate a certain amount of paid leave, while in others, it is left to the discretion of the employer.
Unpaid parental leave
In cases where paid parental leave is not available, employees may still be entitled to unpaid leave. Unpaid parental leave allows parents to take time off to care for their child without losing their job, although they will not receive compensation during the time off. In these cases, parents often rely on savings or other forms of financial support during their leave period.
Parental leave laws
In American workplaces, parental leave laws are governed by both federal and state legislation, and they can vary significantly depending on where employees live and/or work. While some states have robust paid leave regulations, others have none. And overarching federal laws offer some protections, making sure eligible employees have access to parental leave, albeit unpaid in many cases.
Federal parental leave laws
At the federal level, the main law that governs parental leave for eligible employees is the Family and Medical Leave Act (FMLA). Under FMLA, employees can take up to 12 weeks of job-protected leave in a 12-month period for the birth, adoption of a child, or placement of a child in foster care. FMLA leave is also available for employees to act as a caregiver for a family member with a serious health condition or for certain military family needs.
The FMLA has certain eligibility requirements, including:
- Employees must have worked for their employer for at least 12 months
- They must work for a federal government agency or an employer with at least 50 employees
For non-federal employees or those that work for small businesses, the FMLA may not apply—in fact, it’s estimated that as many as 44% of US workers aren’t covered by the FMLA. And for those that are, it only provides up to 12 weeks of unpaid leave, meaning there is no guaranteed income during this period. However, employees can supplement the FMLA with other benefits, using accrued leave like vacation, sick leave, or even short-term disability to get more parental leave or to be paid during parental leave.
State parental leave laws
Some states, especially in recent years, have considered or passed Paid Family and Medical Leave (PFML) programs, offering wage replacement during the time parents take off work. While the FMLA only offers unpaid leave, these state programs provide financial support for employees during their leave. These state laws also often apply to smaller businesses not covered by federal law, providing more inclusive protections for workers across a broader range of employment sectors.
Each state's PFML program is different—who is eligible, what benefits they may receive, and the length of their leave can vary based on the state and each employee’s circumstances.
States like California, Washington, and New York are among those that have implemented paid leave programs for new parents.
Benefits of offering parental leave
Offering parental leave can have numerous advantages for both employers and employees. It not only strengthens the employer-employee relationship but also contributes to building a more inclusive and productive workplace. Below are some of the key benefits of providing parental leave:
It helps build your employer brand
Offering parental leave demonstrates that a company values family and work-life balance, which helps to build your employer brand. Companies that offer strong parental leave policies stand out among other employers, showing potential employees that they are supportive, progressive, and committed to fostering a healthy workplace culture.
It attracts top talent
Offering parental leave can also help you attract top talent to your company. Employees today seek benefits that support their personal lives as well as their professional development. Companies that provide parental leave, along with other family-friendly policies, are more likely to be chosen by candidates over competitors, as it signals they offer more comprehensive support systems for working parents.
It decreases employee turnover
Parental leave policies can reduce employee turnover and increase retention. When employees feel supported during significant life events, such as the birth or adoption of a child, they are more likely to remain loyal to their employer. This reduces recruitment and training costs for businesses and creates a more stable workforce.
It creates a more equitable workplace
Parental leave contributes to gender equality in the workplace by ensuring both mothers and fathers have the opportunity to take time off for family responsibilities. This helps break down traditional gender roles and promotes shared caregiving responsibilities, making the workplace more equitable for all employees.
It supports employee well-being
Providing parental leave can play a crucial role in supporting employees' mental health. The transition to parenthood can be challenging, and having time off to bond with a new child or manage family responsibilities helps reduce stress and anxiety. This, in turn, leads to healthier, more engaged employees who can contribute more effectively when they return to work.
It promotes better work-life balance
Parental leave is a key part of fostering a healthy work-life balance for employees. It allows new parents to dedicate time to their families without the pressure of work commitments, and this balance leads to happier employees who are better able to focus and perform when they return to their roles.
It improves employee productivity and business performance
When employees are granted the time and space to focus on their families, they return to work with renewed energy and focus. This can improve employee engagement, leading to increased productivity and better overall business performance.
Employees who feel valued and supported are more likely to contribute positively to the company’s success, often making parental leave a strategic investment for businesses.
Best practices for parental leave policies
When it comes to creating a parental leave policy, designing an effective set of rules and procedures will help your company support employees and foster a positive workplace culture. Implementing these best practices will help you design a policy that’s fair, flexible, and compliant with legal standards.
Give adequate time off
It's important to offer employees enough time to care for their new child and adjust to family life. When deciding how many workdays (or workweeks) employees can take off under your parental leave policy, make sure it’s enough to provide new parents the time they need to bond with their newborn or newly adopted child.
Be inclusive
A well-structured parental leave policy should be inclusive of all employees. While many benefits are only offered to full-time employees, consider offering parental leave to part-time employees under your policy, a move that would promote fairness and equity across the workforce. And keep in mind that inclusivity extends to all types of families, including adoptive and same-sex parents; parental leave benefits should include fathers, non-birthing parents, and new parents of all sexes and genders.
Make your policy flexible
Build flexibility into your policy—after all, parental leave exists to help employees balance work and family responsibilities. Providing different leave options, accommodating child care needs, and allowing for flexible leave requests can create a more adaptable and supportive work environment.
In your policy, emphasizing workplace flexibilities like remote work or part-time hours upon returning from leave can also ease the transition for new parents.
Address variable pay
In some industries, employees may receive commissions, bonuses, or other forms of variable pay. When drafting a parental leave policy, it's important to address how these forms of compensation will be handled, so employees know what to expect during the leave period.
Make sure you comply with legal requirements
Make sure your parental leave policy aligns with all relevant laws, including the Family and Medical Leave Act (FMLA) and any state-specific regulations. By staying up to date with legal requirements, employers can avoid compliance issues and provide employees with the protection they are entitled to.
Communicate the policy and update it as needed
Clearly communicate our parental leave policy to your employees to set their expectations and reduce misunderstandings. Your human resources department can help explain the policy and its terms. Regularly reviewing and updating the policy ensures it remains relevant and compliant with changing laws and employee needs.
Frequently asked questions about parental leave
Still have questions about parental leave? Learn more in the FAQs below.
Does parental leave affect employee benefits?
During a leave of absence for parental leave, it's important to clarify how benefits like health insurance, paid time off, and retirement contributions will be affected. Employers should communicate clearly whether benefits continue or require adjustments during the leave period.
How long does parental leave last?
The typical leave period for parental leave can vary depending on company policy and applicable laws. Many companies offer between 2 to 12 weeks of leave, though some may offer more depending on individual circumstances.
Can both parents take parental leave at the same time?
It depends on the employer’s policy and the employees’ circumstances, especially if their parental leave is unpaid.
Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.