Posted on January 22nd, 2018
It’s the most basic tenet of life. Birth. With the world population reaching almost 8 billion by the end of 2017 its clear that with such a focus nowadays on our work we humans don’t plan to stop reproducing.
So, what do you do when your most valued employees need time away from their work to experience the wonders and joys of parenthood?
California maternity leave policy is taken seriously by our state and the modern American worker so it is your job as an employer to do your research and stay informed on the expectations of the law and your current and future employees.
There are fortunately some encouraging factors surrounding this hot-button topic. Crafting a detailed, generous policy has significantly recognizable benefits for businesses, such as the ones outlined below.
Incentives When Hiring Top Talent
As your company grows, so does your need for the best employees you can afford. Sometimes it might be more cost-effective for you to offer positions with a healthy benefits package, as opposed to a steeper salary.
While this can include coverage of health insurance, life insurance, or paid time off, a sound maternity leave policy can still bolster your benefits package to really sell your company as one that places family values in high esteem.
This is particularly a selling point for female professionals to consider your offer. (When building the policy, though, it’s important to be open-minded and inclusive to the many different kinds of families who might put it to use.)
In this day and age, modern Americans are conscious of and struggling to find a work/life balance that suits them. Your generous California maternity leave policy has the potential to validate that balance and encourage loyalty amongst your future employees.
Retention of Employees
Retention of your top employees shouldn’t be placed in jeopardy simply because your maternity leave policy is not up to modern standards. Like the beginning of this article suggests, people are going to have babies whether it effects our business or not.
The question is, how are we as the employers going to respond?
A benefits package that includes a generous paid maternity leave is a surefire way to not only attract more female employees, but to keep them.
Making it desirable for women to stay on your workforce will not only maintain labor production, it will also keep your employees loyal to your business. Studies also show that having these types of policies for your staff boosts diversity and enthusiasm in the workplace.
Also remember that with the reduced employee turnover rate, you will surely save on training and hiring costs associated with constant replacement.
Positive Company Morale
Studies continue to prove that an upbeat office environment or company morale boosts employee productivity. A sound maternity leave policy makes sure that new parents can keep smiling even when they return to work, knowing they made the best of their time off. Family-bonding is helping not only individual employees stay happy, but their bright spirit as new parents is sure to affect the rest of the office.
Policies that offer paid parental leave for caregivers of any gender are sure to set your business apart when young families are considering you as an employer.
Specifically, studies have shown that offering paid paternity leave positively affects the morale of new fathers. Though it’s a rare option in most states, this access to family-bonding leaves male employees generally happier and healthier to contribute to your company.
Labor Productivity
It might be easy to think of growing families as a costly burden on the efficiency of your business. Instead, think of these circumstances as opportunities for you to prove to your employees how dedicated you are to the values of their personal lives, and they are sure to reciprocate that dedication to your business with a longevity of employment.
Since the law requiring employers to offer paid leave, 90% of California business actually reported either no change in or a noticeable increase in productivity.
California Requirements to Consider
By comparison to other states, California is one of the more generous states to their employees. In 2002, California’s Paid Family Leave (PFL) was enacted to compensate 55% of employees’ earnings for up to 6 weeks. Sometimes this insurance program is called the Family Temporary Disability Insurance (FTDI).
The State Disability Insurance Program (SDI) through the California Employment Development Department distributes these employee-funded benefits. After employees have spent 5-18 months paying into the SDI, they are entitled to collect from PFL. The size of the company is irrelevant for an employee to qualify for PFL.
If families need more than the offered 6 weeks through the PFL for pregnancy or care of a newborn, they have the option to consider 12 weeks of unpaid leave through the federal Family and Medical Leave Act of 1993 (FMLA).
Only companies with at least 50 employees within a range of 75 miles are required to participate in FMLA. Additionally, employees are only eligible for this leave if they have worked at the company for at least the 12 months prior, as well as for at least 1,250 hours during that 12 months.
Employees aren’t able to stack the time off, though. They would have to take the PFL concurrently with the FMLA.
The California Family Rights Act (CFRA) is very similar to the FMLA in its eligibility requirements for 12 weeks of unpaid leave, but it is different in that this leave can only kick in after birth. This is sometimes called “bonding leave.” FMLA differs by allowing leave during the pregnancy, especially if it is a difficult one.
Potential Legal Issues Surrounding Maternity Leave Policy
When it comes to maternity leave, you as an employer can’t be too careful in keeping your employees – and their lawyers – off their radar. If discrepancies occur in the policy, legal requirements aren’t met, or something else gets mishandled, you surely want to do the best you can to avoid any unbearable legal costs.
Such legal complexities surrounding paid or unpaid family leave are details that you as an employer most likely don’t have the time to properly research. That’s why it’s recommended that you seek professional counsel with us.
We even offer a Policies & Procedures Packet that are customizable for your business’s specific policy needs.
