More Employers are Offering Paid Parental Leave benefits

Topics: Paid Family Leave

More companies are offering paid parental leave benefits than ever before. In fact, a recent study from the Society for Human Resources Management found that more than 1 in 3 U.S. employers offer paid maternity leave beyond what is required by law.

This trend is only projected to go upwards. And since parental leave benefits have been proven to increase employee morale, retention, and talent acquisition, it’s only a matter of time before they become a mainstay at most companies.

The Family Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave for certain family medical or personal needs such as the birth of a child or caring for a sick family member. However, there is no federal statute requiring employers requiring that leave time is paid, but a few states, including Hawaii, California, New Jersey, Rhode Island and New York, have passed laws requiring employers to provide disability insurance, with some also requiring paid family leave.

So what does that mean for insurance agents? Both statutory disability (also called Disability Benefits Law or DBL) insurance and paid family leave have a good chance of expanding, creating a need for clients to secure DBL coverage that complies with paid family leave (PFL) policies as more states mandate the coverage.

What is DBL?


While workers’ compensation protects workers’ injured on a job, disability insurance can provide financial support to workers that need to take time off for temporary, non-work related injury or illness. State disability insurance is a short-term disability coverage that is mandated by the above states.

From an employer’s standpoint, state disability insurance helps retain employees in the long term. It also helps ensure employees recover well, allowing employers to make more informed decisions about team structures and productivity.

What is PFL?


PFL or paid family leave is designed to help support employees in their states during major life events that might otherwise create a financial hardship. Rather than covering illness or injury, eligible employees in these states have guaranteed paid leave for certain life circumstances including:
  • The addition of a new child into the family home
  • The care of a family member with a serious health condition
  • A family member being deployed abroad on active military service

AmTrust North America is in your corner for paid family leave

AmTrust North America is a leading statutory disability insurance provider, covering more than 45,000 employers in New York and New Jersey alone. With our competitive rates and broad state disability insurance coverage, agents can support small businesses and work towards making paid parental leave a reality at employers both big and small.

Check out our additional resources on DBL and PFL:
This material is for informational purposes only, summarizes coverages and services that may be available in a policy, and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors.
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