Work + Money

Sunday, September 7, 2008

Paid maternity leave shrinking as companies pull back on benefits

Getty Images

Getty Images

From the I-guess-it's-no-surprise-but-still-tremendously-disappointing files, the Wall Street Journal's Sue Shellenbarger reports that companies are pulling back on paid maternity leave benefits. As companies try to rein in benefits and disability costs, it makes sense that full pay during maternity leave would be among the benefits to be whittled away, but it it is a darn shame.

To be clear, the federal Family and Medical Leave Act provides all employees with the right to take unpaid leave to care for a newborn baby or an ill family member. But about a decade ago, many companies were distinguishing themselves in their quest to hold onto talented employees by offering 100-percent paid leave post-childbirth, making it not only possible for women to take a leave to care for their newborns but also providing added incentive to return as soon as possible to an employer which had gone above and beyond. In 1998, 27 percent of companies offered full pay for childbirth leave, according to the Families and Work Institute. Now, 16 percent of employers do, based on a sample of 1,100 employers.

During those same years, the average maximum length of job-guaranteed leaves for moms dropped from 15.2 weeks from 16.1 weeks. Leaves for dads fell from 13.1 weeks to 12.6 weeks.

"This comes despite research showing attentive nurturing has particular developmental power in a baby's first year, and that longer leaves can ease postpartum depression in some mothers," Shellenbarger writes. "The pattern heightens the need for parents to plan carefully for time off post-childbirth."

Absolutely.

Shellenbarger found in a poll she conducted for her column that about one in five couples rely on credit cards and loans to fund time off from work to care for their babies. A tough way to start out as a family.

Since only one-third of employers offer some kind of paid leave to employees, according to the Society of Human Resources Management, and not all of them offered 100-percent pay at any point, this may not seem like a big deal because so many people were never offered these benefits. But it signals the reversal of a pretty important trend, one that supported parents and babies at a really crucial and relatively short point in their lives. Since major companies have the power to set a course for how other employers treat employees, the trend toward fully paid leaves was a good one. Faced with the need to tighten budgets, companies are reverting to treating maternity leave solely as short-term disability leave, which typically pays a fraction of a salary for the duration.

Which, of course, is better than nothing. But for awhile there, it looked like we were on our way to something far better than better than nothing.

My babies were born after then-President Bill Clinton signed the federal Family and Medical Leave Act, ensuring parents could take up to 12 weeks unpaid leave and not lose their jobs. I cobbled together vacation time, disability leave and unpaid leave to take five months off after my first baby was born, and I feel so fortunate I was able to do that then.

I'm wondering: Do parents feel they are able to take the post-childbirth leaves they need before returning to work? If you've taken a leave recently or are planning one, let us know how you and your employer are making it work.

Related on Shine:
NJ to offer paid family leave. Where does your state stand?
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From the Community…

Comments 1-10 of 33
  • daytripper's Avatar
    Posted by daytripper Wed Jun 11, 2008 5:11pm PDT

    Oh my. Maybe I should stop reading the news and articles since all they do are scare the crap out of me. Murphy's Law: The economy's in a tailspin when I'm just getting started. I have the bachelor's, but no experience, and my future fiance has the experience, but no degree. Neither of us can get a job that pays more than 15-35K a year with okay benefits. We plan marrying in 2 years and starting a family in 3-4 years (of course, the word "plan" makes God have a good laugh). Who knows when the economy will pick up and when corporations will come out from cover to give better cost-of-living raises, benefits, and paid family leaves.

    Yeah, didn't really contribute anything, just venting. All we can ever do is make what we can have work.

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  • YERI's Avatar
    Posted by YERI Thu Jun 12, 2008 7:44am PDT

    This is scary news for me. I am pregnant and due in October and apparently my job only offers a certain percentage of my salary while I'm gone; don't know if it's half of it or less but quite frankly its just unfair. I also found out that it may not be possible for me to use my vacation time along with my personal time. With the way the economy is going, its definitely not a good time to get my paychecks cut in half or more. Babies are expensive and if its tight for me and my bf right now, imagine how it will be once the baby's here. I truly feel that this is something that the government should think about. Prices are not dropping but increasing, we're basically in a recession (even though they deny it) and to find another job is almost impossible (I've been trying for about two years now!) You've just inspired me to write a letter to the US Government.

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  • optiva's Avatar
    Posted by optiva Thu Jun 12, 2008 8:13am PDT

    YERI YOU SHOULS HAVE THOUGHT ABOUT ALL THIS BEFORE YOU GOT KNOCKED UP.

    Report Abuse
  • Mmgirl's Avatar
    Posted by Mmgirl Thu Jun 12, 2008 8:47am PDT

    The government should not be responsible for you getting pregnant. I'm sorry but that is all there is to it. This is a company based things. I am not so sure that a company should pay you while you are on maternaity leave. That may be a busy time for you with your baby but what about the other women who are still working their butts off? We don't just get to take all this paid time to be out of the office. I think people need to plan and save and consider the consequences of having a child before they get pregnant. I am just happy that you can take the time and still come back to a job in a very unstable economy.

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  • shouldaknown's Avatar
    Posted by shouldaknown Thu Jun 12, 2008 9:56am PDT

    optiva - that was a very ignorant comment to make, to a grown woman. You can THINK all you want, but babies do happen. At least she is not sitting on her tail and relying on the government and our tax dollars to make her lifestyle suitable.

    With that said, FMLA is only guranteed to give you a job when you return, nothing more. Gone are the days when dad went to work and mom stayed home, so getting paid for maternity leave was an excellent benefit. But it's a tough HR decision, and many office, including mine, only pay out what you have in vacation and personal leave, and you can apply for short-term disability to cover the rest of your time if you qualify.

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  • Ali's Avatar
    Posted by Ali Thu Jun 12, 2008 10:02am PDT

    I dont think women should get paid for maternity leave. It's just business and it's not the business' problem if you get pregnant and can not afford your bills. That's why old day, traditional American families used to make sure they were financially secure before they had children. That way, the wife could stay home to take care of the kids and the husband was paying the bills. I guess that's what welfare is for...another reason for the government to help someone who made decisions without planning.

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  • tnhessey's Avatar
    Posted by tnhessey Thu Jun 12, 2008 10:20am PDT

    First off, "Misty Rae" and "optiva," the 2 of you represent everything that is wrong with this country. To optiva: spell check and proof reading goes a long way in making you NOT look like an idiot when posting comments. Also, I don't think that you need to comment about anyone getting "knocked up." And to Misty Rae: No one is asking for the government to be resposible for us getting pregnant in regards to maternity leave. Instead of being angry at those of us who have jobs and work the entire time that we are pregnant, even though our bodies are going through tremendous strain, and choose to take time off to let our bodies recuperate so we can get back to "work our butts off" like the rest of you, maybe you should be angry at the millions of dead beats who abuse the system and continue to have children and NOT work, so they can collect money from the government. Your hard earned tax dollars are going to these P.O.S.'s and you're too busy feeling sorry for yourself for having to pick up for a little slack for some woman who is doing the resposible thing and taking care of her family.

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  • tnhessey's Avatar
    Posted by tnhessey Thu Jun 12, 2008 10:25am PDT

    And seriously all the posts about "poor decision making, not thinking through the consequences of having a child, and making decisions without planning," where the heck did you people come from? Babies happen people. ALL THE TIME!! And all the planning in the world can not always prepare you for the financial stresses that can come along with the resposibility of having a child. I guess maybe we should all stop having children unless we are billionaires, that way you don't have anything to whine about.

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  • shouldaknown's Avatar
    Posted by shouldaknown Thu Jun 12, 2008 10:46am PDT

    I agree @ Beau's mommy

    he healthcare system as a whole is completly out of whack.

    I review beenftis every year and am always astonished at the fact that

    Viagra is covered, but birth control options are only covered IF you want to have an abortion. Since when did becoming a mother get to be bad thing. Perhaps we should just bring back the scarlet letter. 9_9

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  • mefh's Avatar
    Posted by mefh Thu Jun 12, 2008 1:25pm PDT

    That's why I got insurance. There was a waiting period before it would pay anything, but it helped out when I needed to be out of work.

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