What you should know about maternity leave coverage when you’re pregnant

The weeks and months after having a baby or fostering or adopting a child are a time of significant change. Parents need that time to care for their child — and to care for themselves.

If you’re thinking about having a baby, or if you’re already pregnant, make sure you know what benefits and rights you have through your job. You may have questions about finances and time away from work, such as pay, maternity leave, and job security. In the United States, federal laws do not require employers to provide paid maternity leave, so learning about your state’s laws and any employer-provided disability insurance is an important first step.

Here are some questions and helpful answers on the topics of pregnancy, disability insurance, the Family and Medical Leave Act (FMLA), and state paid family and medical leave (PFML).

What is the FMLA, and how can it impact your maternity leave from work during pregnancy?

The FMLA is a federal law that if eligible  can help protect your job (if you work for a company with more than 50 employees in a 75-mile radius) while you’re away from work, for up to 12 weeks during a 12-month period in most circumstances, for family or medical leave, including maternity.

While away, you could apply unused paid time off (PTO), vacation time and/or sick days to receive pay while out depending on your employer’s policy, but usually this time off is not paid. Some states offer paid family and medical leave, so check your state’s regulations carefully.

How long is maternity leave?

The US does not have a standard maternity leave length. The amount of time off for which an employee may be eligible depends on federal or state-mandated law, your employer, and/or  personal choice. Here are general guidelines.

• Federal FMLA can help protect your job while you’re away on family and medical leave for up to 12 weeks.

• The length of each state’s paid family and medical leave varies. In New York, for example, you can take up to 12 weeks of paid family leave and you will receive up to 67 percent of your average weekly wage (up to the cut-off limit). ¹ California provides up to eight weeks of partial pay to employees for paid family leave. ² Verify with your state.

Although the United States does not guarantee paid maternity leave, employers may provide paid leave if they choose. However, according to the World Economic Forum, Employers in the US appear to be cutting back on paid maternity and paternity leave. The number of organizations offering paid maternity leave dropped to 35% in 2022, down from 53% in 2020, says the study. Fewer employers are granting paid paternity leave too, down from 44% to 27%. These cuts are being made despite employers ranking leave as among the top benefits organizations should offer their workers.³

What are the states with paid family and medical leave (PFML) and how is PFML different from FMLA?

The main difference between federal and state FMLA laws is whether leave is paid or unpaid. Federal is unpaid. Certain states provide paid family and medical leave.

Nine states — California, Colorado, Connecticut, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Washington — and the District of Columbia have laws that provide paid family and medical leave for employees who need time off to care for sick or disabled family members or bonding with a new child (newborn, adopted or foster child). The number of states providing paid family and medical leave continues to grow. States may require employees and/or employers to contribute to a paid leave fund.

Each state sets their own rules about the reasons for paid leave, who is considered a family member, how long employees can take paid leave, which employees qualify for leave, contribution amounts, who contributes, and benefit amount.

What is short-term disability insurance and how does it impact maternity leave?

Some employers offer insurance programs that can help provide you with financial protection while you’re out of work. Short-term disability policies vary, but might provide 50-100 % of your income for up to six weeks after you give birth, longer if you have a C-section, or potentially longer if there are complications. Policies have different requirements, so it’s important to find out how well you’re covered before you go out on leave.⁴ Your employer’s human resources manager should be able to advise you on the correct ways to submit claims for private or state insurance.

How can you prepare financially?

If you have a Flexible Spending Account (FSA) or a Health Savings Account (HSA) at your job, consider putting more into it with each paycheck. This money is deducted without being taxed, which can be financially advantageous. And it can be spent on a wide range of out-of-pocket medical expenses like co-pays and deductibles.

If possible, try cutting back on sick days, personal days, and time off to build up paid vacation time to use during your maternity leave. Also, consider additional insurance policies that may be available through your job. Look at Hospitalization Indemnity policies which can be taken out of your paycheck automatically and can help offer financial protection to cover hospital stays due to complications from the pregnancy or delivery. This type of coverage will vary depending on your plan.

What questions should I ask my human resources manager at work?

Employers vary when it comes to maternity coverage. Contact your employer’s human resources department — ideally well ahead of time so you don’t lose eligibility if you miss a deadline — to learn what you can expect and how best to prepare.

Ask specifically about the effect of pregnancy and maternity leave on your pay and about the type of notice you’ll need to give the employer in order to secure your job. Employers are evolving their coverage in this area, so it is important to understand the specifics of what your employer offers.

It’s exciting that you’re entering a wonderful new stage in your life. Understanding your finances and knowing how to help protect your income can make this time even better and reduce some of your stress.

Guardian customers :

If you have questions about your disability coverage:

• Through your employer
  Speak to your human resources department first, or contact us here.

• On your own
  Speak to your financial professional first.