Despite this, fertility-related loss—including miscarriage, stillbirth, and failed fertility treatments—is often excluded from traditional bereavement policies. But it’s time to acknowledge the emotional, physical, and psychological toll of reproductive loss and support employees during these times. 

After all, it’s more common than many realize. The March of Dimes reports that between 10 to 20% of known pregnancies end in miscarriage, while the CDC notes that about 21,000 babies are stillborn yearly. Then, there are those suffering from failed adoptions, surrogacies, and fertility treatments, all of which are a bit more complex when it comes to the numbers—yet these families face trauma as well.

Reproductive loss leave is finally on the rise as employers prioritize employee well-being and strive to boost retention. Whether you incorporate it into your current bereavement leave policy or create a separate policy, it’s a powerful way to show employees you genuinely care about their mental and physical health.

A Glance at the Current State of Fertility-Related Loss Leave

Traditional bereavement leave often focuses on the death of immediate family members, failing to address reproductive loss. This leaves employees in this situation:

• Confused about what kind of leave they should take
• Concerned about the impact on their workload and/or job status
• Stressed about reduced pay—or unpaid leave altogether

Bottom line: Lacking a reproductive leave policy can cause even more stress during a time of grief. In turn, it can lead to decreased morale, productivity, and retention. 

Unsurprisingly, many employers now offer this employee benefit, which is in increasing demand—especially among the younger workforce. Research by MetLife found that employees’ satisfaction with their benefits dropped to 61% in 2023 from 64% in 2022, hitting its lowest point in the past decade.

Offering fertility-related loss leave is both the right thing to do and helps employers stand out in a competitive job market where top talent no longer tolerates subpar benefits that don’t support their needs.

Big names like Goldman Sachs and Pinterest are leading the way. Goldman Sachs added 20 days of paid leave for an employee, spouse, or surrogate who has a miscarriage or stillbirth. Pinterest provides four weeks of paid leave to parents who undergo a miscarriage.

Legal Protections & Limitations

As with so many areas, U.S. leave protections vary widely between state and local jurisdictions. A few states, like Illinois and California, offer only unpaid leave for reproductive loss, which many employees can’t afford. 

The same issue applies to the Family and Medical Leave Act (FMLA). Although it doesn’t apply to bereavement, FMLA provides eligible employees with up to 12 weeks of unpaid leave for serious health conditions, which may include complications from reproductive loss. However, FMLA only applies to employers with 50 or more employees and may not fully address the need for paid or specific reproductive loss leave.

Overall, many do not understand the laws or their rights, from paid sick leave that could cover pregnancy loss to FMLA allowances. A survey by InHerSight and Evermore found that 77% of respondents were unaware of their right to take time off under FMLA following a miscarriage or stillbirth.

There is also the Pregnant Workers Fairness Act, under which employees can request and receive “reasonable accommodations” for pregnancy and related conditions, including pregnancy loss and recovery. This federal law applies to employers with 15 or more employees and requires employers to provide the requested accommodations as long as they don’t entail undue difficulty or expense. It also protects employees from being fired, harassed, or punished for requesting or taking time off for pregnancy loss. 

Employers can make a difference by proactively addressing these gaps with policies and resources that put their team first. 

What Employers Can Do to Address Reproductive Loss

To create a culture of compassion and empathy, employers should consider offering expanded benefits and flexibility to employees who have undergone a fertility-related loss. As you develop these policies and resources, be sure to consider both women and non-birthing parents to provide more inclusion and support for families struggling with fertility.

Expand Your Bereavement Leave Policy

Start by expanding your bereavement leave policy to include reproductive loss as a recognized reason. Define clear guidelines to ensure equitable access for all parents, regardless of gender or role. 

Attorneys Natalie Groot and Danielle Dillon of Mintz say employers should consider:

• How much paid time off will you offer, keeping in mind both physical and emotional recovery? 47% of employers who offer this benefit provide 4-5 days off, but this varies widely.
• How your fertility-related loss leave policy will interact with state and local laws and other leave and PTO benefits.
• Building in flexibility—grief is not linear. Allowing employees to use their leave when and as needed (i.e., continuously and intermittently) caters to the challenges of emotional healing. 
• Using broad language when defining fertility-related loss to ensure an inclusive policy. Reproductive loss encompasses miscarriage and stillbirth, as well as failed surrogacy, adoption, and fertility treatments. 
• The process for employees who want to take this leave. Allow employees to notify their direct manager or any HR team member. This ensures they can speak with someone they’re comfortable with.
• What, if any, type of documentation will be required—although most employers don’t require this, and people don’t seem to abuse the benefit.

In fact, Groot spurred a change in Mintz’s bereavement leave policy after undergoing two miscarriages in just six months. The general practice law firm now provides 15 days of consecutive paid leave following a miscarriage and five days of paid leave in a 12-month period after a failed surrogacy, adoption, or fertility treatment. Companies nationwide have been following suit.

Offer Short-term Disability

Some employees may find they need more time to recover from the physical, mental, and emotional side effects after a pregnancy or reproductive loss and/or related medical treatment. By offering short-term disability (STD), you can give workers more time to heal from this trauma. 

Many employers offer STD insurance to provide supplemental income when employees need pregnancy-related leave. Not to mention, some states provide paid leave benefits like STD for medical leave related to pregnancy or disability. Review your state’s programs and laws to maximize coverage for team members who need it most. 

Allow Workplace Flexibility

Employees may need a gradual transition back to their work routine following a fertility-related loss. Encourage flexible scheduling or remote work options to continue supporting them during this challenging time. This may include: 

• Allowing employees to work reduced hours or take partial days off as needed
• Providing the option to work remotely during recovery periods
• Offering a “return-to-work” plan that gradually increases workload based on the employee’s readiness
• Implementing flexible deadlines or temporary reassignment of responsibilities to alleviate pressure

Provide Mental Health Support & Resources

If you already offer an employee assistance program (EAP) or another type of support group, remind employees of these resources and encourage them to use them. If you haven’t incorporated these wellness benefits yet, consider offering counseling and resources to help employees cope with grief and loss. 

An EAP alone typically comes with many other resources and benefits, including support for areas like marital/relationship problems, financial struggles, and substance or alcohol misuse. The beauty of these programs is they often extend to employees’ immediate family members or those living in employees’ homes. An EAP can be a significant way to show you prioritize employees’ mental health.

Making the Case for a Reproductive Loss Leave Policy

Offering paid leave for reproductive loss, along with additional support and resources, can put your whole team at ease—from those in the early stages of family planning to those already going through pregnancy, fertility treatments, surrogacy, or adoption. Expanding your bereavement policy to include these groups will only improve employee morale, loyalty, and productivity.

Remember to review and update all bereavement leave policies regularly to ensure they stay relevant and supportive as expectations and legal requirements evolve. By doing so, you’ll naturally foster a supportive, inclusive work environment. 

And of course, if you need guidance developing a reproductive loss leave or any other people policies, contact BlueLion today at 603-818-4131 or info@bluelionllc.com. Our HR specialists will gladly help you create a positive company culture.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Is the 9/80 schedule the right fit for your company? Before implementing, let’s explore its benefits, drawbacks, and things you should consider.

What Is a 9/80 Work Schedule?

Like the four-day workweek, the 9/80 work schedule is a type of compressed workweek. With this schedule, however, employees work nine hours a day for eight days and one eight-hour day over a two-week period. This totals 80 hours, allowing employees to take every other Friday off. 

9/80 Schedule Example:  

• Week 1: Work Monday through Thursday for 9 hours each day and Friday for 8 hours.  
• Week 2: Work Monday through Thursday for 9 hours each day, with Friday off.  

This schedule offers employees a three-day weekend every other week, enhancing flexibility and improving work-life balance.

While the basic structure remains consistent, businesses can adjust it based on operational needs as long as the 80-hour requirement within the two-week period is met.

How Does a 9/80 Schedule Impact Payroll & PTO?

Implementing a 9/80 schedule requires careful attention to payroll and PTO policies to comply with labor laws. 

Payroll Considerations  

One key factor is the pay period. If your company operates on a weekly pay schedule, you’ll need to switch to a two-week pay period. Otherwise, the split between 40 hours in one week and 44 in the next could inadvertently trigger overtime pay. For example:

• Week 1: 36 hours (4 days x 9 hours each).  
• Week 2: 44 hours (4 days x 9 hours, plus 8 hours on the first Friday).  

Accurate tracking is essential, as overtime laws differ by state, with stricter regulations in places like California. 

PTO Adjustments

Implementing a 9/80 work schedule affects how PTO is tracked and used, and employers need to adapt their paid leave policies to account for the longer workdays. Here are a few strategies to manage this transition effectively:

Under a 9/80 schedule, most workdays are nine hours instead of the standard eight, so employees will need to use nine hours of PTO to take a full day off. Employers can adjust their PTO policies to reflect this by:

• Increasing accrual rates: Ensure employees earn PTO at a slightly higher rate to account for longer workdays. For example, instead of earning 80 hours of PTO annually, they could earn 90 hours to align with the 9/80 schedule.
• Allowing partial-day PTO usage: Employees might only need to take a few hours off for appointments or personal matters. Policies should clearly state whether and how partial PTO hours can be used to cover absences.

Worried about the complexity and compliance of payroll and PTO management? Simplify the process by using an automated time-tracking system.

Pros and Cons of a 9/80 Work Schedule  

Like any flexible job schedule, the 9/80 schedule comes with benefits and challenges. While it can be a great option for small businesses looking to offer benefits on a budget, it also creates complexities in areas like payroll and scheduling. Understanding these can help you decide if it’s the right fit for your team.

Pros

• Boosts employee productivity: Longer workdays mean employees have more uninterrupted time to tackle big projects or deep-focus tasks. An extra hour in the day can make a huge difference in getting things done.
• Improves flexibility and work-life balance: Imagine having every other Friday off to recharge, take care of personal errands, or enjoy a long weekend getaway. Your team will appreciate the chance to prioritize their personal lives without compromising their work.
• Supports recruitment and retention: Flexible work schedules are a major draw for job seekers, especially in today’s market. Offering a 9/80 schedule shows you value their time and well-being.
• Eases commutes: Employees working a 9/80 schedule often commute outside of peak hours. Fewer traffic jams mean less stress and more time for what matters most.

In fact, numerous surveys show that people prioritize work flexibility when looking for a new role—with the “when” often trumping the “where.” The Economic Policy Institute explains:

“A 2021 survey by Workable found that 58% of workers surveyed valued the ability to work flexible schedules (Mackenzie 2023). A survey by Future Forum found that 80% of knowledge workers surveyed want flexibility regarding where they work, whereas 94% want schedule flexibility (2022). According to a Morning Consult survey conducted for Zoom, 81% of U.S. respondents said that flexible hours and schedules were top priorities (2023). A Gallup survey of service facing workers found that 31% of respondents valued flextime and the ability to choose when they worked. Further, the survey found that 33% of respondents valued flexible start and end times (Pendell 2023).”

And those are just a handful of statistics about flexible work schedules in recent years!

Cons  

• Longer workdays can be draining: Not everyone thrives on a nine-hour workday. Start with a test run by implementing the 9/80 work schedule with certain employees or departments. This will allow you to see how it works and smooth out any kinks in the schedule or payroll process.
• Scheduling challenges: Coverage on off-Fridays can be tricky, especially if your team provides customer support or needs to maintain business operations five days a week. It might require creative scheduling to ensure nothing slips through the cracks.
• Complicated payroll: Switching to a 9/80 schedule means you’ll need to adjust payroll systems, implement a two-week pay period, and track PTO more carefully. These changes can feel like a headache initially, but they’re manageable with proper tools and planning.
• Potential for uneven workload distribution: For some teams, the 9/80 schedule could result in uneven workloads. For example, employees who depend on collaboration might find their work delayed if key teammates are unavailable on their off-Friday.

While the 9/80 work schedule can have incredible results, it’s not a one-size-fits-all solution. Weigh these pros and cons carefully to determine if it suits your team—and then discuss the following with your leadership team.

Is a 9/80 Work Schedule the Right Fit?

Before implementing a 9/80 work schedule, assess your company’s needs and capabilities.  

Operational Considerations

Ask yourself and your leadership team:

• Does your staff size and workflow allow for this level of flexibility?  
• Can you maintain customer satisfaction with off-days in place?  

Industry Suitability

A 9/80 schedule is often ideal for industries where employees work at their own pace, such as tech, professional services, or creative roles. However, it may not suit fields requiring constant coverage, such as healthcare, retail, hospitality, manufacturing, construction, or other customer-facing roles/industries.

Employee Feedback & Test It Out

Involve employees in the decision. Start with a test run by implementing the 9/80 work schedule with certain employees or departments. This will allow you to see how it works and smooth out any kinks in the schedule or payroll process.

Consider Other Flexible Work Schedules  

If a 9/80 schedule doesn’t align with your business, other flex schedules may still meet your goals. For instance:

• Four-day workweek: Employees work four 10-hour days each week, another type of compressed workweek.
• Flexible hours: Allow employees to set their schedules, provided they meet deadlines and required hours.

These options can also boost employee retention and satisfaction while meeting operational needs.

Let’s Talk About Your HR Needs  

A 9/80 work schedule can be a game-changer for businesses and employees alike, but it requires thoughtful implementation. From adjusting payroll to revising PTO policies, there’s a lot to consider. If you’re unsure whether it’s the right fit—or want help exploring other alternative work schedules—BlueLion’s HR consultants are here to help.

Call us at 603-818-4131 or email info@bluelionllc.com to discuss the best solution for your business.

Sounds easy, right? Just pay out employees for their unused PTO, and voila! Everyone’s happy. 

Except it’s not that easy at all. In fact, you can’t simply make up your own cashout policy—you must follow specific guidelines and regulations to ensure compliance and avoid potential financial pitfalls.

Let’s break down what a PTO cashout policy is, the IRS requirements you need to be aware of, and the potential cash flow implications for your business if you don’t handle these policies correctly.

What Is a PTO Cashout Policy?

A PTO cashout policy allows employees to exchange their unused paid time off for cash instead of taking the days off. Similar to PTO rollovers, cashouts may seem like an easy way to keep employees happy, especially when they can’t or don’t want to use their accrued PTO. However, it’s not as simple as offering cash in place of time off—you need to establish clear guidelines that are in compliance with both state and federal laws.

You Can’t Just Make Up a Cashout Policy

One common misconception among employers is thinking they can create a cashout policy on the fly. In reality, PTO cashout policies must comply with existing labor laws and IRS requirements. Failing to do so could lead to unintended tax consequences and legal issues for your business and employees.

Here are a few things you need to consider as you consider offering a cashouts to your paid leave policies:

• Consistency with State Laws: Some states require employers to pay out unused vacation time upon termination, while others don’t. Even if your business isn’t based in a state with strict requirements, it’s still a best practice to have a well-defined policy that clearly outlines when and how PTO can be cashed out.
• Non-Discrimination: If you decide to offer PTO cashouts, your policy must be applied consistently and fairly across all employees. You can’t selectively allow some employees to cash out while denying others the same opportunity, as this could lead to discrimination claims.
• Clear Communication: To avoid misunderstandings and potential disputes, you must clearly communicate your PTO cashout policy to all employees, ideally in your employee handbook. Include details on eligibility, the timing of cashouts, and any applicable limitations.

IRS Requirements & Tax Implications

When it comes to PTO cashouts, the IRS treats these payments as supplemental wages under the “constructive receipt” rule (similar to bonuses or commissions). This means you must follow specific withholding rules:

• Withholding Requirements: PTO cashouts are subject to federal income tax, Social Security, and Medicare taxes. The IRS requires you to withhold taxes at the appropriate rate, which is typically a flat 22% for supplemental wages. You could face penalties and interest if you fail to withhold the correct amount.
• Reporting on W-2s: Any cashouts should be accurately reported on the employee’s W-2 form at the end of the year to ensure you and your employees are meeting tax obligations.
• State and Local Taxes: Don’t forget that state and local tax rates might also apply to PTO cashouts. Check the tax laws in your state to avoid any surprises.

And yes, this means that if you establish a PTO payout policy allowing employees to cash out a certain amount each year, it counts as income—even for employees who don’t cash out any PTO! 

If your current policy permits this, chances are you’ve been underreporting workers’ income and withholding insufficient income and payroll taxes. In this case, it’s time for an immediate review with your HR and legal teams.

The Cash Flow Implications for Your Business

Allowing employees to cash out their unused PTO might seem like a good idea on the surface, but it can lead to significant cash flow issues for your business if not properly managed. Here are a few potential challenges:

• Unplanned Expenses: If multiple employees decide to cash out their PTO simultaneously, you could face a large, unplanned payout—which could strain your business’s cash flow.
• Payroll Budgeting: Since PTO cashouts are considered a payroll expense, they can quickly inflate your payroll costs if not planned for in advance. This might also impact your ability to invest in other business areas.
• Impact on Morale and Productivity: While offering a cashout option might seem like a perk, it could inadvertently encourage employees to forgo taking time off. Regular time away from work is crucial for employee well-being, and a lack of breaks could lead to burnout and decreased productivity.

Best Practices for Implementing a PTO Cashout Policy

To avoid these potential pitfalls, start by limiting the amount of PTO that employees can cash out in a given year to protect your cash flow. For example, you might allow cashouts only once per year or limit them to a specific number of days.

You should also consider implementing cashout windows, such as at the end of the fiscal year or during slower business periods, to better manage your cash flow. Before rolling out a PTO cashout policy, consult with a legal or HR professional to ensure you’re complying with all relevant laws and regulations. Running it by your accountant to understand the impact on your budget is also wise.

If you do want to offer PTO payouts to employees, use an option that complies with tax laws, such as:

• Offer Conditional Cashouts: You can require employees to maintain a minimum balance of PTO before they are eligible for a cashout. For instance, employees could only cash out PTO once they have accrued at least 80 hours, with the option to cash out anything above that amount. This ensures they still have enough time available for rest and prevents complete depletion of their PTO balance.
• Structured Cashout Percentage: Employers may offer a policy where only a percentage of the accrued PTO can be cashed out (e.g., 50% of the total hours). This reduces the immediate cash liability for the business while still giving employees the benefit of some extra income.
• Cashout Cap: You could also put a maximum limit on the number of hours that can be cashed out annually. For example, the policy might allow a maximum of 40 hours of PTO to be cashed out per year, regardless of the total amount accrued.
• Incentivize Time Off Usage: Encourage employees to use their PTO by offering a higher payout rate for time off taken rather than cashed out. For example, you could offer 100% of the PTO value when used for time off, but only 80% of its value if cashed out.

Rethink That PTO Cashout Policy

While a PTO cashout policy can be a valuable benefit for your employees, it’s crucial that you design and implement it carefully. Following IRS requirements and being mindful of your cash flow will help you avoid unexpected financial issues. Remember, you can’t just make up a cashout policy—take the time to ensure that it’s legally compliant and financially sound.

If you’re unsure about the best approach for your business, contact BlueLion to guide you through the process and help you create a policy that works for both your team and your bottom line.

With the World Health Organization (WHO) naming stress the health epidemic of the 21st century, it’s no surprise that both personal and professional stress permeates so many corners of our lives.

This is why it is so important for companies to implement Employee Assistance Programs (EAPs). An EAP can be an essential resource for employees who are dealing with a range of issues.

Unfortunately, these valuable programs are underused, with only 5 out of every 100 employees with access to an EAP leveraging the benefit in a year. However, usage has doubled since the COVID-19 pandemic—which makes sense when you consider how employee stress has skyrocketed over the last few years. 

It seems employees typically have two main concerns regarding EAPs: 

• There is often a stigma because, historically, it was primarily a resource for people with substance misuse problems or serious mental health issues.
• Employees are reluctant to use EAP counseling due to confidentiality concerns.

Modern EAPs, however, address a much broader range of problems and are always 100% confidential. They can offer significant assistance to your workforce and, in turn, have very positive effects on your company. 

If your organization does not already have one in place, we highly recommend getting one! Below, we’ll tell you:

• Exactly what an EAP is and what it covers
• Why your company needs one
• How to implement one effectively

Keep reading for the low-down on EAPs so you can get one in place today.

What is an Employee Assistance Program (EAP)?

An employee assistance program or plan is a voluntary work-based intervention program designed to offer employees support and solutions for issues impacting both their work and personal lives. It is employer-sponsored and completely free for employees to use. 

Employee assistance program services can include counseling and guidance for areas such as:

• Marital/relationship problems
• Financial struggles
• Emotional problems
• Family issues
• Substance or alcohol misuse

Some EAPs may even offer a wide range of services covering basic legal assistance and referrals, adoption assistance, help finding elder care services, and more. It is separate but complementary to your other employee wellness programs, as your provider can often help you find related wellness offerings. The employee’s spouse, children, or partner living in the same household also typically have access to the EAP.

Program counselors will work in a consultative role with managers and supervisors to address employee and organizational challenges and needs. This means they can help organizations prevent and cope with workplace violence, trauma, and other emergency response situations.

Why does your company need an EAP?

EAPs are great for employees because they are paid for by employers and often extend to employees’ immediate family members or to anyone living in employees’ homes. On the same token, EAPs are cost-effective tools for employers that can truly pay off long-term. 

As an employer, you have a vested interest in your employees’ performance. If they are distracted and affected by personal issues and stress, it can affect their ability to reach their full potential. This, in turn, can hurt productivity and drive up costs for businesses. 

EAPs cover certain needs that the healthcare system can’t handle, like financial counseling or elder care assistance. People often struggle with these areas silently simply because they don’t know where to turn for help or can’t afford it. Again, these are totally free services to employees.

EAPs can be the key to helping employees deal with these types of issues and significantly improving their performance. 

The Stress is in the Numbers

Are you still unsure if your workplace really needs an EAP?

The State of the Global Workplace: 2023 Report by Gallup found that employee stress remains at a record high for the second year in a row, with 52% of American and Canadian respondents stating they experienced a lot of stress the previous day. 

While employee stress has likely risen partially due to the pandemic, it’s been increasing for over a decade. Gallup also found that 26% of U.S. employees “very often or always” feel burned out at work, and only 24% feel their employer cares about their well-being.

So, how does workplace stress impact your business? When your employees are struggling with excessive stress or other mental health issues, it can:

• Interfere with employee focus, engagement, and productivity
• Cause performance issues, such as mistakes or missed deadlines
• Decrease morale and create a tense work environment
• Increase tardiness, absenteeism, and turnover
• Spark workplace conflicts between coworkers and/or staff and supervisors
• Lead to more illnesses and injuries—which can, in turn, affect your insurance rates

According to the American Institute of Stress, around 1 million workers are absent every day due to stress, and this job stress is estimated to cost American companies “more than $300 billion in losses due to absenteeism, diminished productivity, and accidents.” 

Those are some ugly stats—and there are many more regarding the negative effects of stress in the workplace.

Employee Assistance Program Benefits

Fortunately, employers can prevent and address many stress-related problems by properly implementing an EAP with resources to help employees manage their stress. The U.S. Department of Health and Human Services reports that for every dollar invested in an EAP, employers generally save anywhere from $5 to $16. 

Are you concerned about the costs of adding an EAP to your employee benefits package? Statistics show that only 1-2% of employees need to use it for counseling each year “to yield enough savings in work productivity outcomes” to break even on your ROI!

But an effective EAP is about more than a purely financial return on investment. It can help:

• Reduce absenteeism
• Boost employee engagement
• Improve job performance and productivity
• Decrease presenteeism
• Ease depression and promote mental health
• Support employees in recovery
• Attract and retain talent

One study even found that employee satisfaction regarding EAPs is “often over 90%.” Additional research found that these programs can strengthen the company from a bigger-picture perspective because they provide “consulting to managers and leaders, workplace crisis preparedness and incident response, organizational level behavioral health risk management services, and specialists for difficult workplace events (i.e., harassment, bullying, sexual inappropriate behavior, customer conflicts, work team dysfunction).” 

How can you implement an EAP?

If you’re ready to get an EAP for your business, we recommend first asking your employee benefits broker if they offer one. Oftentimes (but not always), short-term and long-term disability providers offer this to employers at no cost!

When searching for an EAP, you will want to evaluate what kind of program will best suit your organization’s needs. A few things to consider include what the plan provides, how EAP contracts work, critical requirements any EAP should follow, and how employees will access EAP services.

EAP Delivery Options

There are a number of options when it comes to how an EAP is managed and delivered. Businesses can choose to keep it in-house or outsource all services. The Society for Human Resource Management (SHRM) reports that the most common EAP delivery models include:

• Management-sponsored EAPs: Employers (often large organizations) hire internal EAP staff to deliver the services all in-house.
• Fixed-fee contracts: Employers pay for various services (i.e., counseling, referrals, and supervisory training) with fees based on the number of employees, regardless of their actual EAP use.
• Fee-for-service contracts: Employers contract an EAP provider and pay only when the service is used.
• Consortia: Small businesses join together to contract for EAP services, lowering the cost per employee.
• Member assistance programs: Unions provide these programs with services ranging from prevention and problem identification to referral and counseling activities for employees and their family members.
• Peer assistance programs: PAPs are sponsored by employers or unions and train peers to work with troubled employees to address substance abuse and other problems within predetermined rules and limits.
• Mixed-model programs: These are used by employers and unions with multiple worksites that have different needs and resources.

Service Options

Another awesome benefit of EAPs is that many of them offer different forms of in-person and e-counseling. These include tele-counseling and video-counseling, which suit the needs of many professionals who live a hectic lifestyle and are looking for a more convenient, practical alternative. Virtual counseling eliminates travel time and offers more scheduling flexibility.

Many EAP providers offer both e-counseling and in-person counseling. This allows the client to choose what works best for them. In some cases, a blended approach is taken based on the employee’s needs. This means the employee can enjoy the benefits each method has to offer.

Communication

Once an EAP is in place, employers and/or their HR teams need to inform employees about it regularly (ideally on a monthly basis). This way, all employees will be aware of the program’s existence, how it works, and their options. 

Be sure to communicate the comprehensive services included in the EAP during these routine reminders. Let workers know that they are free and available to everyone in the company. By properly educating all employees about the program, you can remove the stigma around EAPs and encourage them to take advantage of it. 

Confidentiality

Another important factor to address is confidentiality. Remind employees that any services they seek through the EAP are kept completely confidential. 

Employees don’t need to get permission or go through HR to utilize the services. All they have to do is contact the EAP provider. Counselors do not report back to the organization nor keep external records of the counseling sessions. No one in the company has to know that the employee is receiving assistance. 

Executing an Employee Assistance Program

It will be up to your HR team to manage your organization’s employee assistance program and the relationship with your EAP provider, but the use of the services will always stay confidential. 

HR will need to stay in contact with the EAP provider to ensure the programs in place are effective and to guarantee the timely and accurate flow of information to employees. This will help the organization develop services over time and encourage employee engagement with the programs. It only makes sense that HR should be involved since an EAP is an investment in your people!

If your company needs assistance implementing and maintaining an EAP, contact BlueLion at 603-818-4131 or info@bluelionllc.com today. From finding the perfect program for your business to creating policies and procedures, we’ll help you get started on the right track toward ensuring your employees’ well-being and productivity.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

In this article, we’ll answer some frequently asked questions to help you grasp the basics of the HIRD form. 

What is the HIRD form?

The Massachusetts Executive Office of Health and Human Services and the Department of Revenue (DOR) administer the HIRD form through the MassTaxConnect (MTC) web portal. It allows employers to report specific health insurance information about their employer-sponsored health insurance (ESI) and employees.

How will it be used?

MassHealth uses the information provided on the HIRD form to identify its members with access to qualifying ESI who may be eligible for subsidized health coverage through the MassHealth Premium Assistance Program.

This typically mitigates the need for you to fill out a separate Premium Assistance application for qualifying employees. However, MassHealth may request additional information from you to verify an individual’s eligibility.

Who has to complete the HIRD form?

All Massachusetts employers with six or more employees in any month during the preceding calendar year must complete the HIRD form. This also applies to:

• In-state or out-of-state employers who had Massachusetts-based employees in the past 12 months
• Employers who have six or more employees but do not offer health insurance

You must complete your HIRD filing annually. The form is available for electronic completion starting November 15 and must be completed by December 15 of the reporting year. Failure to file could lead to penalties, so don’t overlook this reporting requirement!

How do I file the HIRD form?

To complete your HIRD filing, visit the MTC web portal (the same used to file your state tax returns, submit forms, and make tax payments). Follow these simple steps: 

1. Log into your MTC account.
2. Select the “Withholding tax” account, then click the “File health insurance responsibility disclosure” link.
3. Complete the form electronically—paper forms will not be accepted!

What information will I need to provide?

You’ll be asked for details like the total number of employees, whether health insurance coverage was offered, and the number of employees who accepted or declined coverage. You may also have to provide information about your health insurance offerings and contributions. 

Work with your HR and/or benefits team to ensure you have the summary of benefits (which contains many of the essential details). You may also need information set by your company policies (e.g., minimum probationary period and hours worked per week to qualify for health insurance). Other information will be included in the agreement between your company and your insurance provider (e.g., Plan Year).

You won’t need to report information about flexible spending accounts (FSAs), health savings accounts (HSAs), or health retirement accounts (HRAs) on your HIRD filing.

What if I use a payroll company or PEO?

If you use a payroll company to file tax information on MTC, they can also file the HIRD form on MTC. Coordinate with your payroll provider to ensure accurate and timely filing.

If you use a professional employer organization (PEO), either you or the PEO may file the HIRD form on MTC. Again, coordinate with your PEO to ensure accurate and timely filing. 

The bottom line is that it is the employer’s responsibility to ensure the HIRD form is filed on time, regardless of whether you enlist your payroll company or PEO to submit it!

Could I be penalized based on details reported in the HIRD form?

No, the HIRD form will not be used to impose new fines or penalties related to your ESI offerings (or lack thereof). But if you have questions or concerns about your benefit offerings, we’re happy to help!

Final Thoughts on the HIRD Form

Ensuring accuracy is crucial when completing the HIRD form to avoid potential penalties or compliance issues. Keep track of changes in state regulations regarding health insurance reporting to stay updated on your responsibilities—and find a reliable HR partner who will help you navigate the many employment filings!

The HIRD Form is an important requirement for Massachusetts employers to fulfill their obligations regarding health insurance reporting. By understanding what the form entails and how to complete it accurately and on time, you can ensure compliance with state regulations and contribute to effectively administering healthcare coverage programs.

If you have further questions or need assistance completing the HIRD form, contact BlueLion for guidance today at 603-818-4131 or info@bluelionllc.com! We’ll walk you through this and any other Massachusetts labor law requirements.

Keep reading for our breakdown of the most common questions:

• What is Massachusetts Paid Family and Medical Leave?
• What kind of workers are eligible? 
• How does MA PFML work? 
• When can employees use it?
• What does the application and review process involve?
• What does the new “top off” legislation say?

Click any of the above to jump to a certain section, or keep scrolling for the full breakdown!

What is Massachusetts Paid Family & Medical Leave?

MA PFML is a state-offered benefit for Massachusetts workers, run by the state’s Department of Family and Medical Leave (DFML). It provides up to 26 weeks of paid leave per benefit year for qualifying medical or family reasons. The PFML is funded through a state tax and is separate from both the FMLA and leave benefits your employer may offer.

Note: Employers that offer a DFML-approved private or self-insured plan with benefits equal to or greater than PFML are exempt from making PFML contributions.

Learn more about MA Earned Sick Leave Law, another essential benefit for Commonwealth workers.

What kind of workers are eligible?

Most Massachusetts workers are eligible for PFML, including W-2 employees, self-employed individuals, and 1099-MISC contractors, as long as they’ve met the minimum earnings requirement set annually by the Department of Unemployment Assistance (DUA).

W-2 Employees

This means full-time, part-time, or seasonal employees. Employees are eligible if their employer doesn’t have a DFML-approved private paid leave plan with benefits that are equal to or greater than PFML coverage. 

Former W-2 employees can also qualify if they have been unemployed for 26 weeks or less at the start of their leave, regardless of the termination reason.

Out-of-state employees are also eligible if the employer reports their wages to the Department of Unemployment Assistance.

Self-employed Individuals

Self-employed individuals may opt into MA PFML coverage, which you can do through MassTaxConnect. Your enrollment starts on the date you opt in. You must then: 

• Stay enrolled for at least 3 years
• File quarterly earnings reports during this time
• Make the full quarterly contributions for both family and medical leave based on your earnings

To be eligible, a self-employed worker must:

• Have met the DUA’s minimum earnings requirement during the last 4 completed calendar quarters
• Earned at least 30x the benefit amount that you are eligible for
• Contribute for at least 2 of your last 4 completed calendar quarters before claiming benefits

1099-MISC Contractors

1099-MISC contract workers who are self-employed and work for a business with a workforce made up of at least 50% 1099-MISC contractors are also eligible for PFML.

How does MA PFML work?

Get the low-down on how MA PFML is funded and administered.

Employer Cost & Responsibilities

Whether or not employers must contribute to the PFML fund depends on their total workforce size. If you had 25 or more covered employees last year, then you must make employer contributions for those covered workers. If you had fewer than 25 covered employees last year, then you don’t need to make an employer contribution this year. However, you will need to send the employee’s contributions on their behalf.

If you are responsible for MA PFML employer contributions, you can calculate them on MassTaxConnect. In 2024, employers must make a contribution of 0.88% of eligible wages (0.18% for family contribution + 0.70% for medical contribution), which can be split between covered individuals’ payroll or wage withholdings and an employer contribution. Specifically:

• Up to 100% of the family leave contribution (0.18%) can be withheld from a covered employee’s wages
• Up to 40% of the medical leave contribution (0.28%) can be withheld from a covered employee’s wages, while employers must contribute the remaining 60% (0.42%)

For exempt employers with 25 covered individuals or fewer, you must withhold and submit a contribution of 0.46% of eligible wages. However, you don’t need to pay an employer share. 

Benefit Amount

Do you have employees asking you about how much they’ll receive from their MA PFML benefits? 

The amount an individual is eligible to receive is calculated based on their individual average weekly wage (IAWW), the average weekly wage for MA workers, their benefit year, and the type of leave they’re taking. In 2024, this amount is capped at a maximum weekly benefit amount of $1,149.90.

If an individual:

• Receives unemployment or worker’s compensation benefits
• Uses leave that crosses benefit years
• Works part-time or takes reduced/intermittent leave

It could impact their leave benefits.

The DFML reevaluates the average weekly wage in MA each October. The new maximum benefit amount begins on January 1 of the following year.

Benefit Year

The benefit year:

• Is a rolling calendar of 52 weeks
• Starts on the first week that an individual takes leave through any program
• Is calculated on weeks beginning on Sundays

For example, if an employee starts their leave on a Wednesday, their benefit year starts the Sunday before starting your PFML, which is the beginning of that week. 

The individual’s benefit year determines their benefit rate, which stays the same for the whole benefit year, even if they submit multiple applications or take different types of leave. This rate only changes when they start a new benefit year.

7-Day Waiting Period

There is a seven-day waiting period before an employee can receive the weekly benefit amount. This week is unpaid and counts against their total available leave for the benefit year. For example, if they’re approved for 10 weeks of PFML, they’ll receive 9 weeks of paid benefits.

If the employee is approved for intermittent leave, the waiting period will be seven consecutive days after their leave begins, whether they take leave on those days or not.

This waiting period applies for each instance of paid leave, with one exception: A new mother takes medical leave either during pregnancy or to recover from childbirth. They then choose to take family leave to bond with a child immediately after the medical leave. There will be a waiting period for their medical leave, but it will be waived for the family leave.

Employees can use accrued paid time off (PTO) during the waiting period, but employers cannot require staff to use PTO during this time. If they opt to use PTO, they will need to:

• Use it over a continuous, uninterrupted block of time before or after their PFML benefits start or end date
• Use it only once during their leave period
• Come to an agreement with the employer on their PTO and schedule before their leave starts

Examples: 

• You’re approved for 10 weeks of PFML and use 1 week of PTO. You will receive your full salary during the waiting week and 9 weeks of paid benefits from the DFML.
• If you choose to use 2 weeks of PTO at the beginning of your 10-week leave, you will receive your full salary during that time. You’ll then receive 8 weeks of PFML.

When can employees use it?

Employees can take advantage of MA PFML for:

• Up to 20 weeks of paid medical leave to care for their own serious health condition
• Up to 12 weeks of paid family leave to bond with a child during the first 12 months after birth, adoption, or foster care placement
• Up to 12 weeks of paid family leave to manage affairs while a family member is on active duty
• Up to 26 weeks of paid family leave to care for a family member who suffered an injury or illness while serving in the armed forces
• Up to 12 weeks to care for a family member with a serious illness, injury, or pregnancy/childbirth

A serious health condition is a physical or mental condition that prevents the individual from doing their job for more than three consecutive full calendar days and requires one of the following:

• Two or more treatments by a healthcare provider (in-person or telehealth visit) within 30 days of an inability to perform their duties
• Overnight stay in a hospital, hospice, or medical facility
• At least one treatment by a healthcare provider within 30 days of an inability to perform their duties, with plans for continued treatment, including prescriptions

Learn more about what types of health conditions are covered from the Mass.gov PFML benefits guide.

What does the application and review process involve?

Encourage employees to talk to management and HR to find out if they’re covered and provide notice of their need to take leave. Employees can apply for paid leave up to 60 days before when their leave would start but request that they give you at least 30 days’ notice, if possible. 

Next, they must apply for PFML directly through the DFML, which determines their eligibility and administers PFML. Employees should prepare key information and documentation for their application, including:

• Reason for leave
• The date they notified you (the employer) that they need to take leave
• The date they are planning to take leave or when it started
• A copy of their ID (e.g., driver’s license or state ID) to send via online or mail
• Bank account information
• Phone number that can receive text messages
• Information from a certified health care provider about the serious medical condition the employee or their family member is experiencing
• Your employer identification number (EIN)
• Information about their child’s birth, adoption, or foster care placement, if applicable

Here’s what happens when an employee applies:

1. Before reviewing MA PFML applications, you will need to create a PFML employer account and register as a verified leave administrator.
2. You receive an email notification from the DFML when an employee submits an application.
3. You will then confirm whether the employee has available PFML for the type of leave requested, how much PFML they have remaining in the benefit year, their work pattern or hours, and if any of the details provided indicate fraud.
4. You’ll have 10 business days to review the employee’s application and respond to the DFML with the requested information. If you fail to respond promptly, the DFML will proceed with the application using only the information the employee provided.

Learn more about what the review process entails. 

What does the new “topping off” legislation say?

Employees who apply for MA PFML after November 1, 2023, can supplement or “top off” this benefit with their accrued vacation, sick, or other paid leave under their employer’s policy. Those who filed or started their leave prior to this date do not qualify to supplement their PFML pay.

Is there a limit?

Yes, an employee may top off their weekly PFML benefit with their accrued PTO up to their IAWW. For example, if an employee with an IAWW of $1,500 receives $1,100 per week in PFML, they can use up to $400 per week from their banked PTO. 

Note that as the employer, you are responsible for managing PFML benefits and ensuring they do not exceed the employee’s IAWW. If an employee receives too much, you’ll need to work with them to manage those repayments. The DFML does not handle overpayments.

What is the Individual Average Weekly Wage?

The DFML determines an employee’s IAWW based on how much they’ve earned in the last four calendar quarters prior to the start of their benefit year. More specifically, the DFML looks at the two quarters when the employee earned the most (or the one quarter when they made the most if they only worked two quarters or less). Their IAWW is the average amount they earned per week in those two quarters.

You can calculate an employee’s weekly PFML benefit amount and IAWW if you have a registered Leave Administrator. You can’t access this information without registering—which you must do to remain compliant with PFML requirements and ensure employees receive the correct amount.

Does it matter what kind of leave is used to top off?

This depends on your company’s PTO policies. For example, an employee most likely could not use paid sick leave to supplement their family bonding leave benefits if your sick leave policy doesn’t allow this. This applies as long as your existing PTO policies don’t discriminate and inhibit an employee’s rights under the PFML program. 

What if we provide unlimited PTO and/or holiday pay?

This is another instance where you’ll have to check your PTO policies. We know, it’s not a straight answer—but unfortunately, it’s not so black and white. Remember, employees can use any accrued paid leave provided under their policy. 

When it comes to unlimited PTO, this could depend on how/if your organization tracks employees’ accruals. 

What if you provide holiday pay, and an employee is out on leave when a holiday occurs? Again, refer to your policy to determine if they can use the holiday pay to top off their PFML benefits.

All of the above are subject to your PTO policies, provided they don’t discriminate against an employee for taking advantage of their rights under the PFML program.

How can employers manage the use of topping off with employees?

To successfully manage the process of topping off MA PFML with your employees, keep these tips in mind:

• To calculate an employee’s top-off amount, use this simple formula: IAWW – PFML benefit amount = max they can receive using their PTO
• You and the employee do not need to report how much they use for topping off. Keep them updated on what leave they can use and when, and remind them they don’t need to report this on their PFML application.
• Let them know that topping off their PFML payments will NOT impact their weekly benefit amount.
• Employers have the option to set a smallest increment of leave use policy. In other words, you may establish the smallest increments of leave an employee can take. The DFML’s will pay intermittent PFML benefits for as low as 15-minute increments.

Are you a Bay State employer with questions about MA PFML eligibility, how the benefit works, the application process, or the new topping off allowance? Contact BlueLion for guidance at info@bluelionllc.com or 603-818-4131. Our human resource experts will be happy to walk you and your team through the process to ensure you handle the benefit properly. 

The Bureau of Labor Statistics reports that the average cost of benefits per employee in private companies is $12.19 per hour—nearly 30% of the cost of an employee. This adds up quickly, especially for small business owners for whom every dollar counts!

Taking on these expenses can be daunting, but consider the bigger picture: Offering a solid benefits package can strengthen your business and save money in the long run, thanks to increased loyalty, higher productivity, and reduced turnover. And you can always build on them as your business grows and you can afford to offer more.

Read on for tips on implementing employee benefits on a budget and which benefits and perks to focus on first.

Tips for Implementing Employee Benefits on a Budget

Before you decide exactly what employee benefits you can and should offer, do some research and planning both among your team and the competition. Having an understanding of what others in your industry are offering, the cost of specific benefits, and what your employees want will help you set up an efficient benefits package. 

Follow these tips to get started:

• Know what employee benefits are required. These depend on federal, state, and local laws. Required benefits might include unemployment insurance, workers’ compensation, and disability insurance.
• Start by offering the basics. If you’re creating a benefits package for the first time, start with those that most employees are looking for: health insurance, retirement plan, and paid time off (PTO).
• Offer what you can afford. Don’t try to implement too much at once—set goals and a budget, then stick to them. Remember, you can always expand your benefits down the road.
• Give employees a timeline. If you currently offer no or limited benefits, create a plan so you can tell your team when new benefits will be available. This gives them an idea of what they can look forward to instead of leaving them wondering. 
• Look for affordable benefits and perks. In other words, start with those that have the least impact on your bottom line, such as PTO and flexible schedules (more on these below).
• Survey employees to find out what benefits they would value most. Yep, ask them what they want—it’s as simple as that! This shows you care about their overall well-being and ensures you don’t waste money on benefits that won’t be used.

Staying transparent with your team and true to your budget will give you a solid foundation for your employee benefits.

6 Employee Benefits & Perks to Prioritize

So, what employee benefits should you offer first? Consider the essentials every employee wants, those that don’t cost more, and low-cost perks that will make a meaningful difference for your team members.

1. Health Insurance

On average, businesses spend $3.04 per hour per employee on insurance. You are not required to provide health insurance until you have 50 or more full-time employees (or full-time equivalents) under the Affordable Care Act. However, it’s what most people look for first—they at least want to ensure they have this essential need covered. After all, healthcare costs are rising, making insurance a main concern.

Keep things more affordable for your company by opting for a high-deductible health plan (HDHP)—employees will have to pay more in premiums, but you can offset this by providing a health spending account (HSA) option and making a contribution that fits your business’s budget.

Another option is joining a professional employer organization (PEO), which provides your employees with health insurance under a PEO-sponsored health plan and saves you the administrative costs of offering your own.

Or if you’re simply not in a position to provide insurance yet, consider giving employees a reimbursement to subsidize their marketplace plans. This allows you to budget an amount you can afford while still offering a benefit to your team.

2. Retirement Plan

Next on many employees’ lists? Cost-effective retirement planning. Give employees the option to save toward their retirement by making contributions with every paycheck with a 401(k) (or 403(b) if you’re a nonprofit). 

You can make an employer match, in which you match up to a certain percentage of the employee’s contribution. If a match is not in your current budget, you can always start by offering the 401(k) without a match and opt to add one later.

Not to mention, adding employee benefits like a 401(k) offers tax benefits for your business. Ask your tax accountant what type of retirement account is the best fit for your business and employees.

3. Paid Leave & Flexible Schedules

Speaking of those benefits that don’t hit your bottom line, offering paid leave and flexible schedules is a cost-effective and competitive benefit since another priority for today’s talent is flexibility. 

Employees now expect more than the minimal time off for national holidays, sick leave, and bereavement. They want an employer that respects their work-life balance, allowing them to care for their families, tend to other responsibilities, enjoy their favorite activities, and simply unplug when they need to. Many employers are staying ahead of the curve with unlimited PTO or a generous policy with a rollover option. 

On top of paid leave, consider ways you can make your team members’ lives easier with flexible schedules. From letting employees set their own hours to the up-and-coming four-day workweek, there are plenty of ways to get creative and provide employees with the other most valuable commodity: time!

4. Remote Work

On that note, why not consider giving employees the option to work remotely? The last few years have changed the working landscape, proving that telecommuting is not just possible but comes with many benefits. And because of that, a growing portion of the workforce prefers to work from home. 

In fact, 65% of workers want to work remotely all the time, while 32% would like a hybrid schedule. Plus, 71% note that working from home provides work-life balance. It’s becoming a non-negotiable employee benefit—and employers who haven’t embraced it yet could fall behind.

Of course, implementing remote or hybrid work depends on your business, and it may be more conducive for some roles than others. Remote work also comes with its own challenges, so it’s essential to create a policy and think outside the box regarding employee productivity and connection. 

Overall, however, virtual work shows that you trust your team and gives them even more flexibility. And in the case of a company that goes fully remote, it can significantly reduce overhead!

5. Home Office Stipend

If you do have a virtual team, you can also provide a home office stipend. Your business will probably equip employees with equipment like computers, software, and phones (if applicable), directly. But what else could they use to be more productive and comfortable while working from home?

Perhaps workers could use office furniture that promotes their health, like an ergonomic chair or standing desk. Whatever their preferences, you can give them a home office stipend to support their wellness while allowing them to get what they want and need. 

If you’re a small business on a budget, you can set the same amount for each employee. Be sure to clearly communicate this to new hires and in your benefits paperwork.

Impactful Fringe Benefits

Finally, when you’re looking for ways to help employees in a way that will support both their finances and overall well-being, fringe benefits can be affordable yet impactful. You can determine what perks your team members would most appreciate and how much you can afford to budget. Plus, there are many unique benefits you can offer!

Fringe benefits can include various wellness, financial, family, and everyday needs, such as: 

• Gym memberships
• Daycare
• Healthy lunches
• Pet insurance (many health insurance providers now offer this)
• Employee Assistance Program (EAP)
• On-site classes (e.g., cooking, health/nutrition, fitness, creative classes, etc.)

Even if your business is not ready to cover these costs 100%, you can provide stipends or partial subsidies for these needs. Or, partner with local businesses to pass on discounts and deals to your employees.

You could also consider implementing lifestyle spending accounts, which cover many of the above expenses not typically covered by healthcare. LSAs provide significant flexibility for both employers and employees, allowing you to contribute what you can afford to each employee’s account and employees to choose how they spend those funds. Learn more about LSAs and how to set them up.

Implement a Cost-effective & Competitive Benefits Package

Creating a standout benefits package on a budget can be challenging—and no, you may not be able to compete with big companies. However, you can stand out by offering the flexibility and element of personal care that many large corporations can’t. 

Your employees are your most valuable asset, which means they’re your most important investment! Investing in essential benefits is no longer an option for employers who want to stand out and acquire the market’s top talent. More than 50% would leave their current jobs for new opportunities with better benefits.

But keep in mind you can implement employee benefits one at a time. Get a clear view of your budget, what options are available to you, and the costs. Then, come up with a plan for when and how you’ll build your benefits package.

Do you need guidance launching new employee benefits and perks? Our HR consultants will be happy to help you help your humans! Contact us today at 603-818-4131 or info@bluelionllc.com to learn more.

And if employees don’t get decent benefit packages? They’ll simply look elsewhere, as statistics show 49% will leave their jobs in the next 12 months over a lack of benefits. As for employee turnover, it can cost anywhere from 30% to 400% of the employee’s annual salary to replace them! 

Yet, 78% say they would likely stick around if they like the benefits. Clearly, a solid benefits package is essential for both attracting and retaining top talent. Forbes reported that the top five benefits employees look for are:

• Health insurance
• Life insurance
• Retirement plans
• Mandatory paid time-off
• Mental health support

So, start getting creative with perks that will help employees save money and find more time and joy in their lives. At BlueLion, we are passionate connectors and love partnering with businesses near and far that can provide fresh offerings to our clients and their employees. That’s why we host an annual webinar sharing the latest unusual benefits for employees! Watch it below, or read on for the complete list and resources.

1. Professional Headshots

Have you ever considered professional headshots as a perk? Many don’t, and that’s what makes them a unique employee benefit! As our go-to brand photographer, Trayce Gregoire, explains, headshots and team photos can go a long way in boosting morale. 

Plus, having modern, lifestyle, approachable headshots aligned with your brand allows your team to put their best foot forward! You and your employees can use the photos on your:

• Company website
• LinkedIn
• Signatures
• Other marketing channels and materials

This creates a much more cohesive, professional brand than selfies or candids taken randomly. Using BlueLion as an example, Trayce explained how our headshots and team photos stand out and make us memorable and recognizable. After all, people want to see who they’ll be working with and put a face to the name to personalize it. When everyone’s photos look uniform and show your pride, your team can feel good about them, too.

Employers can use professional headshots as a recruiting tool. By offering this to employees, you’ll give them something to use for future career moves. Plus, you’ll make it convenient for them to have photos they can feel good about and enhance their confidence!

Additionally, brand photography can support your diversity, equity, and inclusion (DEI) initiatives. When engaging with your audience and prospective employees, clients, and partners from your website to social media channels, these images show the faces behind your business and tell your story.

Another often overlooked benefit of professional headshots applies to many blue-collar businesses, such as plumbing, HVAC, landscaping, and others in the trades who come to customers’ homes. Many businesses now send customers photos of the technician or pro beforehand, so they know who to look for, providing them with peace of mind that they’re working with a reputable company.

To learn more about Trayce, visit traycegregoire.com and reach out to her about headshots and team photos!

2. Additional Time Off

Many employers have been asking us what else they can offer for leave. It’s a crucial question—employees are looking for more flexibility to accommodate their well-being and lifestyles and are no longer willing to sacrifice quality of life for work. They want to know their employers value their overall wellness and time. 

Some up-and-coming types of paid time off (PTO) include:

• Birthday Paid Leave: You didn’t work the day you were born, so why should you now?!
• Parental Leave: Many employers are offering a more inclusive parental leave policy for all types of parents and family situations versus the traditional maternity/paternity leave.
• Adoption Leave: A growing number of organizations offer this for parents who have adopted children.
• Required Leave: Mandatory isn’t always bad! In fact, 31% of employees prioritize required PTO. In this situation, employees select a certain number of weeks at the beginning of the year to take leave and fully disconnect. You determine the length, which may vary by level. 
• Floating Holidays: These allow employees to celebrate other religious holidays outside of the standard federal and Christian holidays
• Long Weekends and Fridays off
• Mental Health Days: We all have days when we wake up and don’t feel up to going in. The mental health day gives employees an option to take the day off without having to lie about a sick day or schedule PTO in advance.
• Pet Bereavement: Pets are family too, so give employees some time to mourn the loss of their companions.
• Pregnancy Loss: Parents may need more time off on top of the standard bereavement in the case of pregnancy loss. This extra time shows your compassion and sensitivity.

Besides compensation, paid leave is one of the first employee benefits new hires typically negotiate. Show team members you value them from the start with flexible, inclusive paid leave policies.

3. Aflac

We are BIG fans of Aflac here at BlueLion, so we were excited to have agent Will Mumper join us! This supplemental insurance is one of those affordable and unique employee benefits that offers many types of plans and protections. 

Aflac can work with your business whether you have no existing benefits or you offer robust benefits with deductibles and copayments. Simply put, it puts money back in your employees’ pockets with significant events like a cancer diagnosis, physical trauma, loss of income, and medical treatments. Best of all, Aflac offers:

• No additional costs to your business—it’s just a simple payroll deduction for employees!
• Easy setup and benefits administration
• Personal ongoing customer support from your rep, Will
• Guaranteed issue policies, meaning even someone with a history of health problems can find coverage
• Rate lock, meaning your rate stays the same as when you enroll

Aflac simply pays out the benefit to the employee and they use it as needed, giving them breathing instead of more worry about how they’ll afford things and support their family. As Will explained, it mitigates financial concerns. Because let’s face it, unless the employer covers a huge portion of the medical costs, most employees have a large burden when it comes to using medical benefits.

And since everyone is at a different point in their lives, Aflac offers their policies a la carte and they’re totally customizable. Will sits down with each individual or family to discuss their needs and point them in the right direction. Contact Will at 978-376-6039 or email him today to learn more.

4. Reproductive Health Benefits

Many employers are becoming even more competitive regarding reproductive health benefits in the wake of reproductive health care law changes in the Supreme Court. In addition to paid parental and adoption leave, these can include:

• Surrogacy benefits
• Family planning assistance
• High-risk pregnancy care
• Pregnancy, post-partum, lactation, and menopause support
• Travel benefits

Please note: Employers providing legal reproductive care benefits will need to assess the implications of these offerings as reproductive health care laws continue to evolve.

Additional unique benefits for parents (especially those overwhelmed new parents) might include credits for food delivery (e.g., Uber Eats, GrubHub), laundry, and house cleaning services.

5. Reassess Your Health Insurance

According to Forbes, 67% of employees note health insurance as the most important benefit. For the younger generations, it’s non-negotiable—85% of millennials believe healthcare is “absolutely essential” and “very important.”

So, when was the last time you evaluated your company’s health insurance? Take steps to keep it competitive by reviewing your policy annually. Ensure your broker isn’t simply dialing it in. Consider what else you can provide, such as:

• Supplemental plans: Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Accounts (HRAs), and Dependent Care Accounts (DCAs) are low-cost for employers, while employees get to save pre-tax dollars.
• Health analytics: You can share data with employees so they understand what areas of their health they could improve—this benefits them and your insurance costs!
• Telehealth: Last year, 93% of organizations said they offer telemedicine or telehealth to workers. It’s a given since Covid!

Consider what other unique employee benefits you can offer, like gym memberships or hosting wellness and fitness classes. Toni shared an example of a former employer that gave employees points toward reimbursements if they could provide receipts showing the fruits and veggies they purchased.

Health insurance costs vary widely, but the average annual premiums for employer-sponsored coverage in 2022 were $7,911 for individuals and $22,463 for families. What are you doing to offset those costs and educate employees about their options?

6. Peak Recovery & Health Center

Colin Cook established Peak Recovery & Health Center in Manchester, NH, to offer a range of health and wellness services, something your employees are focused on! As you already know, healthier employees are more productive and miss less work. 

Peak Recovery specializes in cutting-edge recovery solutions, focused on:

• Mood and mental health
• Pain management
• Stress reduction and relaxation
• Injury rehabilitation
• Athletic/sports performance enhancement

To address these issues, Peak Recovery provides a range of services, including:

• Cryotherapy: Uses extreme cold temperatures that alleviate pain and reduce inflammation (shoulder or back issues, for example), release endorphins, and help you feel better overall.
• Photobiomodulation: Helps with cellular function and rejuvenates deteriorating or underperforming cells. Great for winter and seasonal issues.
• NanoVi: Reduces oxidative stress and removes free radicals from the body (works well with photobiomodulation).
• Float Therapy: Sensory deprivation tank in which you float for up to an hour with the lights off and music on if you’d like. Good way for the body to absorb magnesium to shut off our minds.
• Compression Therapy: Increases circulation and reduces muscle soreness.
• Infrared Sauna: Lower temperatures make it more comfortable and infrared penetrates the body for more benefits.
• Massage Therapy
• Celluma: Helps with acne and skin conditions

Peak Recovery offers custom memberships and packages, which they can customize with any of their recovery services based on your employees and the business. You can offer ongoing services for employees to use regularly and promote proactive health.

The center also offers Wellness Days, through which they will organize wellness experiences for your team focused on group self-care and team bonding. There are both half and full-day options, complete with snacks and refreshments. Learn more at peakrecoveryandhealthcenter.com! 

7. Preventative Well-Being

You’ve probably noticed a theme here regarding health and wellness benefits. Today, this means focusing on proactive well-being by addressing and preventing stress, burnout, and mental health issues. 

People are already stressed, which affects businesses. Of course, employees expect employers to do something about it. A majority (91%) of Gen Z and 78% of millennials believe every company should implement a mental health policy for employees

So, what can you provide and how? We advise:

• Expanding employee assistance programs (EAPs) to provide these resources and services. You can only support your employees so far, so give them professional resources to help ease that burden and cost.
• Providing online resources, education, and articles for employees
• Offering training for managers on recognizing behavioral issues and warning signs (e.g., an employee who is always late, missing a lot of work, etc.)
• Steering those employees toward the appropriate services and resources
• Conducting anti-stigma campaigns. Many are still not comfortable getting mental health support, so educate them about programs like peer groups and support groups for families like the National Alliance on Mental Illness (NAMI), Alcoholics Anonymous, and Narcotics Anonymous.
• Offering workplace flexibility to help offset the need to go to group meetings, therapy, doctor appointments, etc.

8. Renovate Fitness

Continuing on the topic of unique employee benefits around fitness, we have Renovate Fitness in Londonderry, NH, owned by Liz Erlandson. Renovate offers results-based training, which employers can incorporate into their perks in many different ways. 

This welcoming and inclusive gym takes a whole health approach by focusing on both nutrition and fitness. There are no cookie-cutter programs here—they customize each program based on the individual! You can offer this at no additional cost to your company, or you can subsidize the cost of their membership. Renovate also offers discounts for your employees.

While other gyms offer weight loss, not many incorporate injury healing and prevention into their programs, which is what Renovate has become known for. You don’t just go and work out. Instead, their trainers develop a plan, pick goals for you, and work with you on problem areas or send you to someone who can. They even have tools like the Fit 3D body scanner to keep track of everything to help clients hit goals.

Renovate offers a range of memberships, including:

• 1:1 personal training: Good for those with injuries and health conditions (e.g., strokes, MS)
• Groups: Pre-planned workouts and diets
• Semi-private: Meal plans and nutrition coaching
• Pain-free & Fit: 12-month health and wellness program, monthly or in-person Zoom call, videos, and PDFs

Plus, they offer a variety of morning and evening classes and weekends to cater to everyone’s schedule! Learn more at renovatefit.com or contact Liz today.

9. Remote Work Perks

We can’t gloss over the specific employee perks for remote teams! Think of ways you can support them, make their workspace more efficient and comfortable, encourage virtual team bonding, and simply brighten up their days. These might include:

• Home office stipend
• Learning and development stipend
• Childcare reimbursement
• Mental health workshops
• Standing desks
• Virtual hangouts
• Plant subscriptions
• Workout class subscriptions 
• Internet reimbursement
• Access to coworking spaces
• Virtual book club

BlueLion has had a lot of success building our virtual team, and we’re happy to share more of what has worked for us in establishing a positive culture!

10. Fully Promoted of Southern New Hampshire

Another one of our trusted partners is Sal Calautti of Fully Promoted of Southern New Hampshire, who we trust with all of our branded merch needs! 

BlueLion can say from first-hand experience that employees love high-quality branded swag. We do hoodie Mondays, inviting the whole team to wear their hoodies and ease into the week both comfortable and put-together. Our hoodies were embroidered by Fully Promoted, and we’re always happy with their embroidery.

Of course, when it comes to company swag, every employee has a different style and preferences. Consider giving employees a stipend so they can pick what they want with your logo on it! You might also put together a new hire package with a shirt or sweatshirt and a few office supplies so they can start showing company pride right away.

At the end of the day, these small gestures show employees you’re invested in them and you care. So if your Southern NH business needs next-level branded products, check out Fully Promoted or call Sal at 603-647-9994 today! 

11. Financial Benefits

Thanks to inflation, Americans are spending an average of $709 more a month on everyday goods and services than they did two years ago! What unique employee benefits can you offer to help your team members plan and save? Consider providing:

• Retirement plans
• Covered meetings with financial planners
• College planning meetings for children and parents—did you know you can establish a 529 plan not just for college but for trade schools?!
• Will preparation to ensure they’re prepared and won’t be saddling loved ones with debt
• Power of attorney
• Credit building or rebuilding coaching
• Financial debt management
• Student loan repayment 
• Budget planning and assistance
• Legal subscription
• Identity theft protection

Research has found that 39% of employees say their personal and professional lives are negatively affected by money concerns. Plus, employees who experience severe financial stress levels lose between 29 and 39 workdays yearly to handle concerns. Offering financial benefits can help your employees and save your company money and resources lost to low productivity and absenteeism.

12. Spark Offices

There are numerous advantages to working remotely—but it can also be distracting and isolating. Not to mention, we all need to get out of the house and engage with other humans once in a while! That’s where a coworking space like Spark Offices comes in. 

With one location in Manchester and a new one opening in Dover, this collaborative workspace gets employees out of their home offices and away from distractions (think that pile of laundry you still haven’t gotten to or being interrupted by the kids, your spouse, or pets). You can decide how often you’d like employees to come in, whether it’s a couple of times a week or a few times a month.

Spark offers perks to make workers as comfortable and efficient as possible, including:

• Premium local coffee
• Secure WiFi
• Convenient restaurants and snacks
• Stand and sit workstations
• Presentation technology
• Accessible parking

As owner Chris Duhaime explained, there are also intangible benefits, such as:

• No distractions: People can work in the main space, conference room, or a private office.
• Comradery and friendships: Employees can enjoy in-person social interaction.
• Educational and networking opportunities: Spark hosts events and brings in speakers to encourage learning and connection.

While Spark Offices is open between 8 a.m. and 5 p.m., you can work out of the main space anytime as long as you coordinate with them so they can open it for you. Visit sparkoffices.com to learn more and schedule a tour today!

13. Ways to Enjoy Time

We’ve discussed the importance of flexible paid leave options, but how will employees enjoy that free time? Are there areas you can help them when it comes to funding entertainment, relaxation, and travel? Here’s a slightly scary fact: 74% of Americans have gone into debt to pay for a vacation, with the debt averaging about $1,108!

Think of unique employee perks you can offer that help your team enjoy their time, such as offering:

• Tickets to local attractions (museums, events, sports, movies, etc.)
• Vacation stipend
• Music streaming subscription

Look into local attractions you can partner with to provide those tickets and potentially get discounts!

14. Compt Lifestyle Spending Account

We love a good lifestyle spending account as a unique employee benefit here at BlueLion, so we were excited to have Chelsea Barron of Compt tell us about this unique reimbursement model platform.

The first cool thing to note: You can take everything you’ve seen here and offer it to your employees through a stipend!

Unlike vendor marketplaces which are pre-funded and limited (often not catering to employees’ lifestyles), and card models, which are also pre-funded, restrictive, and often forgotten about, Compt is not pre-funded or tied to vendors. You set up stipends for employees based on goals or behaviors you want to drive. 

The platform offers 25 categories, and you select those that best suit your employees. For example, you can offer a wellness stipend, and employees can use it at Peak and subsidize their premiums at Aflac. Or they could subsidize headshots via a professional development stipend. 

Compt provides an easy way to accommodate your entire workforce in different life stages, wanting different things. They simply upload their receipts and are reimbursed through payroll. Implementation is easy implementation, and you get a customer success manager to guide the way.

65% of employees stated that they are more likely to stay at their company because of the benefits offered through Compt, which include:

• All-in-one platform for stipends, rewards and recognition, and expense management
• 100% IRS compliant and automated, so your finance team doesn’t have to go through and upload receipts
• An average of 90% employee engagement, the highest of any LSA platform

Visit compt.io to learn more, or contact Chelsea Barron to get started today!

15. Day-to-Day Perks

Have you considered those everyday apps and services that you could offer as unique employee benefits? What do they do to relax? What do you hear them complain about that you could provide to help save them time and money? Some ideas include:

• Mindfulness app subscriptions
• Audible/Kindle subscription
• Career coaching
• Car wash/detailing
• Dry cleaning
• Laundry drop off
• Uber Eats or grocery delivery costs or stipends

Since 76% of employees want benefits and perks that enhance their well-being and quality of life, they would likely appreciate having some of these things taken off their plate!

16. Bar Harbor Bank & Trust

Last but certainly not least, there’s banking—yep, and we understand if you haven’t thought about offering this as a benefit to employees! But you certainly can by building a relationship with a local bank. Our go-to is Tina Brown at Bar Harbor Bank & Trust.

First, Bar Harbor offers $100 to employees who open a checking account which is free, and also comes with a free savings account and free mobile banking and bill pay. Their easy interface encourages employees to enroll in direct deposit, which simplifies the process for both the employer and the employee. 

Additionally, Bar Harbor offers:

• Money markets and Certificate of Deposit (CD) accounts with competitive rates 
• Savings and Savings Transfer Club Account, allowing you to save for planned expenses and earn interest
• Free HSAs for employees with a high-deductible health plan (HDHP) that Tina sets up for you

Finally, Bar Harbor provides educational seminars for your employees on managing money appropriately and getting themselves to the next level, such as: 

• How to create a budget
• How to build credit
• First-time homebuyers seminars
• How to save for retirement

These seminars can even be customized for each individual for their needs in a private or group setting. We love Bar Harbor for their judgment-free and rewarding banking. Call Tina at 603-464-9242 or email her today to learn more!

Stay Competitive with Unique Employee Benefits

WOAH, that was a LOT of cool employee benefits and perks to take in! So don’t stress about implementing all of them or doing too much at once. Consider how you can make gradual changes to build the culture and attract the top talent you want. 

As you do, ensure people can customize their choices based on their needs and lifestyle—remember, one size does NOT fit all anymore! Don’t forget to research additional resources for the listed benefits in your local area, which also supports your local business and community.

If you need help, BlueLion knows many amazing professionals and resources we are happy to recommend!

We don’t get affiliate income from these vendors—we share them because we use their services and genuinely believe in what they do and know that their services or products are solid and their customer service is excellent. And we like to work with people who will serve our clients to the best of their abilities.

Need help starting in the right direction and determining what’s best for your team? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com!

Everyone should have some type of disability insurance to protect their income if they cannot work due to an illness or injury. Many employers provide short-term disability, with a few states requiring it. And while long-term disability coverage is not mandatory, about half of large and mid-sized employers include it in their benefits.

Below, we share a simple breakdown of short-term and long-term disability to help you navigate this aspect of employee benefits.

Short-Term Disability

Short-term disability (STD) provides partial wage replacement for employees who are temporarily unable to work due to a non-work-related illness or injury. The disability can last for a few weeks to a whole year.

How can employees receive coverage?

An employee seeking short-term disability coverage typically needs to provide medical documentation from a healthcare professional stating the nature of their condition and expected recovery time. The most common reasons include surgery or illness recovery, an accident injury, or pregnancy/maternity leave.

Note that if the employee is injured on the job, their leave would be covered under your workers’ compensation insurance rather than your short-term disability policy.

How much coverage does short-term disability provide?

Short-term disability benefits usually cover a percentage of the employee’s base pay, typically around 60-80%. However, this can vary based on your plan. Employees receive weekly benefit payments.

Is there a waiting period?

There’s often a waiting period from when the employee becomes disabled to when benefits start to prevent abuse of disability benefits. This can range but is usually 14 days or fewer. Benefits typically begin on the eighth day after a claim is filed.

Because of the brief elimination period, short-term disability can ease financial stress as an employee waits for their long-term insurance to begin, which has a longer waiting period. Many choose to use both to supplement their income and lower costs.

How long does the benefit period last?

Standard short-term disability benefit periods are 13, 26, or 52 weeks. The U.S. Bureau of Labor Statistics (BLS) reports that the median coverage length is 26 weeks.

Are employers required to provide short-term disability?

No federal law mandates employers to provide short-term disability insurance, and most states have kept this optional. However, six jurisdictions require disability insurance, including:

• California
• Hawaii
• New Jersey
• New York
• Rhode Island
• Puerto Rico

Long-Term Disability

Long-term disability (LTD) insurance provides wage replacement for employees who are unable to work any job due to a serious, prolonged illness or injury. Cancer, mental illness, arthritis, chronic pain, heart disease, and other conditions that prevent employees from performing everyday tasks are common qualifying reasons.

How can employees receive coverage?

Employees must provide medical documentation from a healthcare provider stating that their condition prevents them from performing their job for an extended period.

How much coverage does long-term disability provide?

The coverage percentage for long-term disability benefits is usually less than short-term disability, covering around 40-70% of the employee’s income. LTD benefits are paid monthly.

Is there a waiting period?

Long-term disability elimination periods can run between 30 days and two years, though most take 90 days to begin receiving benefits.

How long does the benefit period last?

Long-term disability insurance can extend for months to years. Sometimes, LTD even lasts until retirement or until the individual is eligible for Social Security payments (age 65) for those who are permanently disabled.

Are employers required to provide long-term disability?

No, there are no laws requiring employers to offer long-term disability insurance. But that doesn’t mean you shouldn’t! Many employers include some kind of long-term disability in conjunction with their short-term disability group plan. This can enhance your employee benefits package and attract new talent while relieving your team during difficult situations.

What about employer contributions and costs?

While your provider and state may have specific requirements regarding short-term disability, employers can choose what type of plan they offer:

• Traditional: Employer pays the total amount
• Contributory: Employer and employees both contribute to the premium
• Core buy-up: Employees can choose to buy more coverage
• Voluntary: Employees alone cover the disability insurance

Note that short-term disability benefits are taxable if the employer pays for all or a portion of the insurance OR if the employee pays with pre-tax dollars (usually from their paycheck).

The BLS reports it costs employers approximately 1% of the total compensation cost, or $624 per full-time employee annually.

Final Thoughts on Disability Insurance

Considering the cost of disability insurance, this benefit is well worth it! You’ll show employees that you value their well-being, which will only pay off in the long run. When your team members know they have this additional safety net to fall back on, workplace morale will improve—and we know that higher morale equals higher retention and productivity. 

Specific policies and regulations may vary based on location and industry. Consulting with an HR professional can help you tailor your disability policies to your company and employees while adhering to relevant laws. Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to ensure your benefits are where they should be and your team is supported!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

America is one of the only developed countries that doesn’t offer nationwide paid parental or family leave. The Family and Medical Leave Act (FMLA) covers up to 12 weeks of unpaid leave, which can apply to eligible new parents. And an increasing number of states are implementing paid family leave programs.

While many companies have historically provided longer maternity leave and shorter paternity leave, this could put employers at risk of a discrimination lawsuit.

With all this in mind, developing an inclusive policy can be challenging. So, should you use separate maternity and paternity leave or a parental leave policy?

Let’s take a closer look at the differences, how they work, and what is best for your organization and employees.

What are maternity leave and paternity leave?

Maternity leave is when a woman takes time off from work because she is about to give birth, has just had a baby, or has adopted a child. Paternity leave applies to men who adopt or have partners who have just had a child. Both aim to provide parents with bonding time with their new child. 

Traditionally, employers have offered individual maternity and paternity leave policies to employees. However, more and more organizations are choosing a general parental leave policy.

What is parental leave?

Parental leave is a gender-neutral policy that provides employees of all genders time off to care for their children. A growing number of employers are choosing to implement general parental leave policies available to all caregivers within the first year of a child’s birth or adoption.

Some employers have even started offering both maternity or paternity leave plus parental leave. For example, a mother could take maternity leave and extend her time off with parental leave. 

Countries around the world are leading the way in this employee-first trend. Find more parental leave inspiration.

What are the perks of parental leave?

Creating a thoughtful parental leave policy instead of individual maternity and paternity leave policies can help your company: 

• Avoid discrimination claims and legal issues by offering the same amount of leave to all new caregivers
• Ensure inclusivity for all parents, regardless of their gender or if they’re birth or adoptive parents
• Maintain a straightforward, easy-to-administer benefit
• Strengthen employee morale 
• Eliminate caregiver stereotypes/stigmas and reduce employees’ fear of taking family leave
• Attract and retain talent

At the end of the day, an inclusive parental leave benefit shows employees you value and care about them and their families. 

What is pregnancy disability leave?

In addition to maternity leave, several states now have laws allowing employees to take leave for pregnancy disability, also known as pregnancy-related medical leave. This is included in the employer’s short-term disability insurance and typically gives mothers an additional six weeks (or eight weeks for a Caesarian delivery) for:

• Pregnancy complications
• Childbirth recovery and complications
• Related medical conditions

These laws vary from one state to the next.

Is parental leave paid or unpaid?

Many companies that offer maternity and paternity or parental leave often provide it unpaid. Employers that offer paid leave often provide a percentage of wages and/or allow employees to combine sick leave, vacation time, and short-term disability.

As mentioned earlier, more states are mandating paid family and medical leave (PFML) laws. These are typically either funded by employee-paid payroll taxes or a combination of employee and employer deductions.

So whether or not you provide paid or unpaid parental leave depends on your state’s requirements and what type of policy you choose.

How long should parental leave last?

Since there is no federal requirement regarding parental leave, this is usually up to the employer. Policies range from four to 12 weeks or more. Again, some states, like California and New York, now have paid family leave laws mandating employers to provide a minimum number of weeks of paid parental leave.

In addition to applicable state laws, you must ensure your parental leave policy is equal for male and female employees. If you offer longer maternity leave than paternity leave, you’ll be in violation of Title VII of the Civil Rights Act, which prohibits gender discrimination.

For example, a company may offer employees up to 10 weeks of pregnancy-related medical leave for pregnancy and childbirth. They may also offer new parents, regardless of gender, six weeks of parental leave. This is legal as both men and women receive six weeks of parental (i.e., bonding) leave, and women who give birth get an extra 10 weeks of leave for pregnancy and childbirth recovery.

What about adoptive parents?

Whether you opt for individual maternity and paternity leave policies or a gender-neutral parental leave policy, it must apply equally to both birth parents and adoptive parents. 

To ensure your policy is legal, make it available to all parents, regardless of gender and whether or not they give birth. 

How do multiple leave provisions work together?

So, what are your rights and responsibilities as an employer when it comes to employees combining different types of leave? Let’s look at a couple of scenarios.

Parental Leave + PTO

You can require employees to use vacation, sick time, or other PTO before taking paid parental leave or maternity leave (just be sure to apply this requirement for all types of medical leave). Be careful here—a too-strict policy could affect employee morale, so build in some flexibility if you go this route.

Parental Leave + FMLA

Most employers allow eligible employees to take parental leave concurrently with FMLA leave concurrently. This allows employees to extend their paid parental leave (whether under your policy or a state paid family leave program) with unpaid leave while typically keeping the 12-week total. 

For example, if you (or your state) offer eight weeks of paid leave, employees could take four weeks of unpaid FMLA leave. You may also allow or require employees to use any available paid leave to cover their FMLA time. 

FMLA protects employees by guaranteeing their job when their leave is over and ensuring their continued benefits coverage. Additionally, employers with 15 or more employees are subject to the Pregnancy Discrimination Act, meaning they can’t discriminate against employees based on pregnancy, childbirth, or related medical conditions.

Do What’s Best for Your Company & New Parents

Today’s top talent EXPECT family-friendly workplaces, and offering a generous, gender-neutral parental leave policy is a great place to start. Not to mention, it will help mitigate your risk of legal issues, improve employee engagement, and strengthen your brand image!

For more guidance on developing a thorough and competitive parental leave program, contact BlueLion today at 603-818-4131 or info@bluelionllc.com.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.