Federal law gives new parents unpaid leave. Paying for it is a design choice.
The FMLA protects up to 12 weeks of job-protected leave for a new child, but it doesn’t require pay. A paid parental leave benefit has to be designed around short-term disability, accrued time off and cost, and written so it is applied consistently.
What the FMLA already requires.
The rules come from 29 U.S.C. § 2612 and § 2614.
12 Weeks, Unpaid
Eligible employees can take up to 12 workweeks in a 12-month period for the birth of a child or placement of a child for adoption or foster care. The leave must be taken within 12 months of the birth or placement.
Spouses at One Employer
If both parents work for the same employer, the employer may limit their combined leave to 12 weeks for birth or placement.
Health Coverage Continues
During FMLA leave the employer must maintain group health coverage on the same terms as if the employee were working. See our guide for how premiums are collected.
What a paid benefit can look like.
The cost and the message depend on these decisions.
Top-Up or Bonding Leave
Many employers top up short-term disability for the recovery period and add paid bonding time for both parents. Others pay a flat number of weeks for any new child.
Who Qualifies
A tenure requirement, such as six months, limits cost. Adoption and foster placement should be treated the same as birth, and the policy should be written for all parents.
Pay and Funding
Paid at full or partial pay from general assets, or through an insured paid leave product. Accrued vacation can be required to run concurrently with FMLA leave under the statute.
Coordination, credits and communication.
A parental leave policy touches several other benefits.
Disability Coordination
Short-term disability usually covers the medical recovery period, not bonding. The leave policy should say how the two combine so that nobody is paid twice or left unpaid.
The Tax Credit
Qualifying paid family and medical leave can earn an employer credit if there is a written policy that meets the requirements. See our page on the credit.
Communicate Early
Employees plan around leave months ahead. A one-page summary in the handbook and at onboarding removes most questions.
Paid family and medical leave credit → PWFA and PUMP Act rules →
What employers ask about paid parental leave.
Do we have to pay for parental leave?
Federal law doesn’t require pay. Check current state and local rules and your own policies, which may promise pay.
Does disability insurance cover bonding?
Typically not. Short-term disability pays during medical recovery from childbirth under the policy’s definitions. Ask your carrier how yours works.
Should the policy cover fathers and adoptive parents?
A policy limited to birth mothers can invite discrimination claims. Cover all parents consistently, and have counsel review the wording.
Related guides.
FMLA and Leave
The federal leave rules.
Caregiver Support and Paid Leave
Benefits for people who care for others.
Short-Term Disability
How the benefit works.
Tell us what you offer today.
We’ll model what a paid parental leave policy would cost, how it coordinates with your disability coverage, and what the written policy should say. No cost, and no obligation.
Your current leave policy
Your short-term disability coverage
How many births or adoptions you see a year
Any tenure rule you prefer
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
29 U.S.C. § 2612 — FMLA leave requirement, including birth and placement leave and spouses employed by the same employer.
29 U.S.C. § 2614 — FMLA: employment and benefits protection, including maintenance of group health coverage during leave.
26 U.S.C. § 45S — Employer credit for paid family and medical leave.
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