Why Your Company Needs an Inclusive Parental Leave Policy (And How to Create One)

Compared to men with children (18%), women with children are almost two times (35%) more likely to refuse or delay a promotion due to family commitments.

As an employer, you play a big part in supporting new parents. Paid parental leave is one of the most powerful benefits you can provide, so it’s important your employees are empowered to take what they’re owed.

Women who successfully balance between work and time off are more likely to enjoy their lives. They’re also more than twice as likely to be fully engaged at work, and it less likely to be job hunting elsewhere.

Parental leave for fathers is equally important—in fact, paternity leave is critical for closing the gender pay gap. When parents of all kinds are empowered to take leave, it normalizes caretaking responsibilities for everyone. In this guide, we’ll explore parental leave rights and regulations, as well as how you can best support your employees.

What is parental leave?

Parental leave is an umbrella term used to describe leave options for parents who have just welcomed a child into their family through childbirth, adoption, or other scenario. It’s time parents and caregivers take off work to care for and bond with children or a new baby.

While maternity leave is the most common form, paternity leave and adoption leave are becoming standard across all industries. Employers are crafting parental leave policies to cater to a broader scope of family types, and are striving to incorporate more inclusive policies.

Understanding parental leave regulations and available resources can help employees access the right benefits and ensure employers stay compliant.

How long is parental leave?

The Family and Medical Leave Act (FMLA) requires businesses to offer employees an average of 12 weeks of unpaid parental leave in the US for various health and family reasons, including the birth of a child.

Many states have laws that go above and beyond the federally mandated 12 weeks of unpaid leave. For example, Washington state recently passed the Paid Family & Medical Leave program (PFML), which grants workers up to 12–18 weeks of paid family or medical leave depending on their circumstances.

Countries across the world are amping up their leave policies as the benefits of parental leave become more apparent. In fact, Sweden offers 480 days of leave—to be split between both parents—paid at 80% of employees’ regular wages.

Is parental leave required by law?

Yes, the Family and Medical Leave Act (FMLA) makes it mandatory for companies to offer parental leave. However, not every employee is eligible, so it’s important to be aware of the following FMLA requirements:

• Only companies with 50 or more employees must offer FMLA coverage.
• Employees must have worked for the employer for at least 12 months.
• Employees must have worked at least 1,250 hours for the employer before taking leave.
• Businesses must guarantee that employees will be able to return to their jobs after the parental leave is over.
• Eligible employees can take up to 12 work weeks of leave in a 12-month period.
• Even though it’s unpaid, employers need to continue to provide health insurance throughout the parental leave period.

In addition to the leave granted by FMLA, parental leave laws and requirements differ depending on the state. For more information, check out this guide by the US Department of Labor.

Is parental leave paid?

Parental leave can be paid or unpaid, depending on individual company policy and state regulations. The US is unique among developed countries in not offering nationwide paid parental leave.

While the FMLA provides unpaid, job-protected leave for eligible employees, some people don't qualify. In these cases, those employees must use sick or vacation time. However, some states have now implemented paid parental leave programs (funded by payroll taxes) to give new parents more time to spend with their newborns.

Your company can also offer its own paid parental leave benefits, like maternity and parental leave for fathers, beyond what is legally required.

How to create a parental leave policy

Having paid parental leave policies of more than 12 weeks might not be feasible for your company. But that doesn’t mean you can’t create a policy to help set your employees up for success in new parenthood and show them that you care. Below, we’ve explored a few considerations when creating a paid parental leave policy.

Get feedback from your team

Your team should be the first place you look when creating a parental leave policy. They may have expectations you haven’t considered, and, although you might not be able to offer everything they want, their feedback can provide a good place to start.

Do a competitive analysis

When it comes to retaining your employees, understanding what your competitors are offering can go a long way in gaining a wider understanding. Explore parental benefits that your local or industry competitors offer, or those in your employee size range, to learn what the standards are.

Be inclusive

Creating inclusive parental leave policies helps to level the playing field between mothers and fathers in the workplace. You may not decide to offer the same amount of leave for everyone, but you should consider non-birthing parents and same-sex couples when creating your policies.

Be aware of parental leave laws

This may be a given, but you’ll need to research the laws in the states and countries where your business operates. If you have remote employees, this becomes especially important. Brush up on the requirements in each location and ensure you have the right resources and policies in place to stay compliant.

Factor in short-term insurance

If you already offer short-term parental leave insurance as part of your benefits, you may be able to factor that into your paid leave policy. Follow up with your insurance broker to see what your options are.

Parental leave FAQs

You may still have some questions about parental leave, so we’ve covered some common ones below.

How does parental leave pay work?

Employers typically offer paid or unpaid parental leave after childbirth or adoption, but some companies may decide to offer paid leave. Paid leave usually covers full weekly pay, excluding overtime and bonuses. Before taking leave, the employee must notify their employer and complete any required paperwork. Parental leave is a job-protected absence, especially under the FMLA.

What’s the difference between parental leave and maternity leave?

Only female adoptive or birth mothers can take time off for maternity leave. However, parental leave is available equally to any parent.

Maternity leave typically occurs in the weeks and months following the birth or adoption of a child. Most parental leave is available to employees within the first 52 weeks of a child’s birth or adoption.

What’s the difference between parental leave and paternity leave?

Paternity leave falls under the broader parental leave category. It applies specifically to fathers or non-birthing partners, and gives them time to bond with a new child. Meanwhile, parental leave is a gender-neutral term that can be taken by any parent (mother, father, or adoptive parent), often used more flexibly.

What is the average paid parental leave in the US?

There is no standard paid parental leave in the US. In fact, according to the DOL, only 27% of private sector workers had access to paid parental leave in 2023.

The average parental leave in the US is 10 weeks (paid and unpaid combined), though this can vary by state—but Best Workplaces for Parents offer an average of 15 weeks.

Get started today

It’s time to review your current policies and adapt them to align with your business values and to support your employees. Take some time to look over your handbook and guidelines and make adjustments as needed.