What are some considerations in coordinating disability benefits with maternity and parental leave?

March 25, 2025

To be clear, maternity leave is provided only to birth parents to attend prenatal care, for pregnancy-related disability and to recover from childbirth (e.g., severe morning sickness or complications requiring bed rest). If an employer sponsors short-term disability (STD) benefits, the STD policy generally covers pregnancy-related disability, though coverage and eligibility vary based on the specific policy. In contrast, parental leave (aka bonding leave) is for any parent to take time off to bond with and/or care for their newborn or newly placed adopted or foster child. STD does not generally cover bonding leave.  

The EEOC states that employers should carefully distinguish between leave related to any physical limitations imposed by pregnancy or childbirth (described by the EEOC as “pregnancy-related medical leave”) and leave for the purposes of “bonding” with a child and/or caring for a child (described as “parental leave”). Leaves related to pregnancy, childbirth, or related medical conditions can be limited to women affected by those conditions. However, parental leave must be provided in the same manner to both men and women on the same terms. (See the EEOC’s enforcement guide on pregnancy discrimination and Estée Lauder Companies to Pay $1.1 Million to Settle EEOC Class Sex Discrimination Lawsuit | U.S. Equal Employment Opportunity Commission for more information).  

So, it’s possible for an employer to offer additional wage replacement or STD benefits to employees who give birth, while parental leave is provided equally to similarly situated men and women on the same terms. However, a recent parental leave settlement highlights that it may be viewed as discriminatory if maternity leave is provided without verifying whether the birth parent is actually disabled due to pregnancy or childbirth. Employers would also want to consider allowing all women employees who give birth the same level of STD benefits under the policy to avoid any arguments of disparate treatment or discrimination. Ultimately, employers should review their leave policies and STD benefits carefully with their legal counsel.  

Employers also need to designate the FMLA when a leave reason qualifies for FMLA and when the employee meets the FMLA eligibility, if applicable. The FMLA qualifying reasons include the birth of a child, prenatal care, incapacity related to pregnancy, nonbirth parent to care for their spouse who is incapacitated, and bonding (applies equally to female and male employees). Bonding leave can be taken within 12 months from the date of birth under the FMLA rules.  

Additionally, as an increasing number of states have been enacting their state mandatory disability insurance (DI) and paid family leave (PFL) (aka PFML), employers should review the applicability of any state mandatory DI or PFL to their employees based on their work states and coordinate the employer-provided maternity leave, parental leave, and STD/LTD with the FMLA, and state PFML appropriately, including benefit amounts and leave durations. (For further information, PPI clients can download a copy of the publication Quick Reference Chart: Statutory Disability & Paid Family and Medical Leave Programs from the PPI Client Help Center.)  

Employer Takeaway  

When coordinating disability benefits with maternity and parental leave, employers should consult with their legal counsel or HR advisor who specializes in leave policies to ensure the leave policies and STD/LTD benefits comply with applicable guidance and do not intentionally or unintentionally produce disparate treatment of birth parents and nonbirth parents. Further, the leave policy should be clearly communicated to employees and included in employee handbooks and/or other employee communication materials.