Small Bussinesses Maternity Leave: What to Expect When Your Employee is Expecting

There are two main laws that outline maternity leave laws: the Family and Medical Leave Act and the Pregnancy Discrimination Act. While both are designed to protect the employee, small businesses owners—especially those with just a handful of employees—might wonder about their rights. The pregnancy of an employee and the period of time after the baby is born could put a lot of stress on small business owners who may not have the resources to cover the time away from work that a pregnancy may require.

Small businesses with 50 or more employees, must follow the Family and Medical Leave Act (FMLA). The FMLA applies to any business that has had 50 or more employees for 20 weeks in the current or previous year. The 20 weeks do not have to be consecutive. It sates that both women and men must be allowed to take 12 consecutive weeks leave time during the 1st year with a new child. It covers not only parents of newborns, but also those who adopt or foster children. Whether or not the 12 weeks are paid leave is up to the company, though some state have laws that mandate this or have issued other laws that allocate the length of the maternity leave a new parent is allowed with continued job security.

For example, both California and New Jersey offer disability payments to new parents at two-thirds their wages for the first 6 to 8 weeks of maternity leave. And in Tennessee, businesses with as little as 8 employees must offer up to 16 weeks maternity leave.

The Pregnancy Discrimination Act (PDA) states that businesses with 15 or more employees cannot discriminate against an employee because she is pregnant. This includes not being able to terminate an employee just because of the pregnancy. The PDA mandates that employers must hold the job open for the duration of the maternity leave. It also goes on to state that a pregnant woman must be allowed to work as long as they are able to perform their job. In cases where an employee’s current job is no longer a viable option, a comparable replacement job must be offered; and this applies to the time before and after the baby is born.

So what does this all mean for businesses with less than 15 employees who neither fall under the FMLA nor the PDA? It is up to them to decide on and implement their own maternity leave policy (while making sure that there are no laws in effect in their sate). It is important to remember that every employee must be held to the same policies—that means no playing favorites.

There are some positive things about having a good maternity leave policy in place. First, employees will know that to expect and can plan accordingly and be able to communicate with you about their decisions—especially if they involve having to quit. Second, having a good maternity leave policy can lower employee stress at a time where things might be considerably stressful; and it is proven that a happy employee is a more productive employee with better job performance. Caron Beesly of sba.gov says that abuse of maternity leave is not as widespread as one might think and that an astounding 90% of employees return to work after taking their leave time. Since maternity work laws are mostly for larger companies so it is up to the small business owner to come up with a policy that makes both their employees and themselves happy. The key to success is communication. Talk with you employees and it will surly give you both a positive outlook on maternity leave.

Beesley, Caron. “Maternity Leave Benefits – What Are Your Small Business Obligations and Options?”. http://www.sba.gov. 31 July. 2013.

Bolden-Barrett, Valerie. “Maternity Leave Laws for Small Businesses” smallbusiness.chron.com.