Paid maternity leave benefits for small business exists today in all fifty states. Many women have the opportunity to enjoy income replacement while home recovering from childbirth and bonding with her baby. Her employer provided this benefit without adding to direct costs.

There are few laws in the United States requiring paid parental leave for small companies or large. Only five states make this an obligation for mothers and/or fathers

Voluntary employee benefits solve the problem across the country – at least for the mothers by replacing a portion of income while she is physically unable to work, and adding extra cash payments for delivering her baby in the hospital.

Paid Parental Leave Laws for Small Business

There are very few paid parental leave laws for small businesses in the United States. The holds true for businesses of any size, including those with less than fifty employees, as well as those with more.

The federal Family Medical Leave Act (FMLA) applies to employers with fifty or more employees working within a 75-mile radius of one another. However, the law provides for unpaid job-protections only.

Apply for a parental leave loan if you must cope with lost income while at home bonding with your baby. Only, five states have separate regulations pertaining to small business, which work differently for fathers and mothers.

Paid Paternity Leave

Three state have laws, which require small businesses to offer paid paternity leave for fathers. California, New Jersey, and Rhode Island each has regulations that obligate private employers to provide six weeks of partially paid paternity leave to enable fathers to take time at home to bond with their newborn baby.

The state laws apply to employers of all sizes. They must contribute money from payroll deductions into a state-run fund. Both employers and employees make payments via payroll contributions.

Paid Maternity Leave

Five states have laws, which require small businesses to offer paid maternity leave for mothers. The partial income replacement may apply when mom stops working prior to delivery because of pregnancy complications while she recovers from labor and delivery, and while she bonds with her baby.

State temporary disability programs provide paid leave during the time the mother is unable to work because of a medical reason. This includes time off from work because of pregnancy complications, and recovery from labor and delivery. The laws require private businesses both small and large to participate in California, Hawaii New Jersey, New York, and Rhode Island.

The state paid family leave laws extend the length of time mom can collect her partial income replacement benefits during the time she bonds with her baby. The clock starts ticking on this portion of the program once she recovers completely from labor and delivery. The regulations apply to private employers of any size and exist in California, New Jersey, and Rhode Island.

Small Company Paid Maternity Leave Benefits

Small companies with three or more benefits eligible employees can offer paid maternity leave benefits to female workers. They can do this without adding to direct cost by offering voluntary employee benefit programs. Women pay the premiums themselves.

Walk your way through two policy examples of maternity leave pay, and then learn the rather lax requirements. You may end up wondering what the fuss it all about.

Policy Examples

Explore two small company paid maternity leave policy examples to see how the programs work. Female employees can enroll in two supplemental health insurance policies which both make claims payments for pregnancy and childbirth-related medical conditions. They cannot obtain this coverage elsewhere. They are only offered as voluntary employee benefits.

Short-term disability policies provide paid maternity leave benefits by replacing a portion of her income when she is physically unable to work. Below are three common examples.

  1. She must stop working prior to delivery because of medical complications
  2. She is recovering from labor and childbirth
  3. She experiences postpartum disorder which delays her return to work

Hospital indemnity policies offer paid maternity leave benefits when mom admits herself to the hospital for a pregnancy-related medical condition. Below are three common examples.

  1. She admits herself to the hospital because of pregnancy complications
  2. She admits herself to the hospital for normal labor and delivery
  3. Her baby is born preterm or with a serious medical condition and requires specialized care

Required to Offer

Small companies are not required to offer voluntary employee benefits for paid maternity leave. However, any employer with female employees of childbearing age would be wise to do so. It builds a competitive benefits program without adding to direct costs. It helps attract and retain a competitive workforce.

Small company employees want the option. They cannot obtain the insurance programs elsewhere. Carriers do not sell the directly to individuals. The requirements for employers and employees are simple and easy.

  1. Small company owners simply have to complete two one-page forms, support a payroll deduction, and allow the carriers to educate employees.
  2. Employees must attend the educational meetings, and enroll prior to conception. Pregnancy is a pre-existing condition. The two supplemental programs will not cover preexisting conditions until twelve months after the coverage effective date.

Voluntary benefits make small company paid maternity leave possible for employees and affordable for the owners. We should not hear about what other countries offer without exploring this option first. What are you waiting for? Ask your employer.