Parental Leave Considerations for Employers

The United States stands alone among industrialized nations in offering no paid maternity leave. Fewer than 13% of private‑sector workers receive paid parental leave. However, 87% can take unpaid leave under the Family and Medical Leave Act, and employees at companies with 100+ workers in Hawaiʻi qualify under the Hawaiʻi Family Leave Law.

Even so, only 20% of all American workers take any leave at all following the birth of a child. Once personal sick leave, vacation leave, and temporary disability insurance run out. High-earning, college-educated women are most likely to take family leave. Workers cite heavy workloads, affordability, and lack of company policy as their top reasons for skipping maternity or paternity leave.

At the same time, changes to local laws are happening across the country. Thirteen states, the District of Columbia, and a growing number of municipalities have paid family leave laws requiring employers to provide paid leave to full-time employees.

Changing values and expectations in the workforce lead many progressive companies to see parental leave as an important benefit to retain top talent.

Should I provide maternity leave if the law doesn’t require me to?

Well, first of all, you wouldn’t call it maternity leave, you’d call it parental leave. And it would have to apply equally to both mothers and fathers or risk a discrimination lawsuit.

Small businesses in Hawaiʻi with fewer than 50 employees don’t need to provide parental leave under state and federal family leave laws—for now. Ahead of legislation requiring them to do so, some companies are offering parental leave benefits to stand out and attract top talent.

These employee benefits and perks influence a jobseeker’s consideration of a company and a position. Many workers value better benefits in lieu of an actual pay increase.

Parental leave as a retention and recruitment tactic is definitely worth considering if your company is serious about winning Hawai’i’s talent war. While providing parental leave does increase costs, a recent study shows that denying parents flexible work options can hurt your bottom line. The National Partnership for Women and Families also found that offering paid parental leave boosts productivity, strengthens morale, increases loyalty, and helps small businesses stay competitive.

Is my company required to provide parental leave?

The requirements are clear. Private‑sector companies with 50+ employees must offer parental leave under the Family Medical Leave Act (FMLA). The federal mandate requires employers to provide up to 12 weeks of unpaid, job-secured leave to qualified mothers and fathers following the birth or adoption of a child, as well as notifying them of these rights.

Leave can be taken any time within the first 12 months from the date of birth or adoption. The leave must be taken in a continuous block unless the employer allows intermittent leave.

Hawaiʻi employers with over 100 employees should also be aware of the Hawaiʻi Family Leave Law (HFLL) which allows qualified employees to take up to four weeks of unpaid, job-secured leave to care for the welfare of a new child.

Unlike the FMLA, the HFLL does not hold restrictions on the number of hours worked when determining an employee’s eligibility for leave. This means full-time, part-time, temporary, casual, on-call, and intermittent workers may be eligible to receive parental leave under the HFLL after at least six months of employment. Several other significant differences exist between state and federal family leave laws, so be sure to clarify these with your HR representative.

Both FMLA and HFLL apply to partners in legal, same-sex marriages as well as heterosexual spouses. Even fathers who are not married to or living with the mother of their child may qualify for parental leave, depending on how long they have been working for their employer and that employer’s leave policy. Leave for birth and bonding may be taken any time in the first 12 months of the baby’s life. The leave must be taken in a continuous block unless the employer agrees to allow intermittent leave.

How to prepare your business for parental leave

One of your star employees just informed you that she is expecting. While you’re happy for her, you also can’t help your mind from racing a mile a minute.

What are my obligations as an employer? Am I required to provide maternity leave? Can I maintain business-as-usual if I’m short-staffed for several weeks?

Start by consulting with an HR professional to be sure you understand your obligations and requirements as an employer. Second, prepare your plan of action.

1. Track and transfer duties: Identify the employee’s daily tasks, current projects, and reporting lines. Then reassign duties and delegate tasks.
2. Cross‑train staff: Train multiple employees on key roles to prevent disruptions when someone takes leave.
3. Hire temporary help: If workload becomes overwhelming, bring in temporary staff.

ALTRES Staffing, has a pool of qualified individuals who can help your company maintain productivity when key employees are out on parental leave.