Paid parental leave has been a topic of interest in the benefits world. While it's still a relatively scarce offering in American benefits packages, public and private employers are slowly adding it. And, the benefit's visibility has risen considerably, thanks in large part to the presidential election, where it's been pushed by Democrats Hillary Clinton and Bernie Sanders.

How it works

It's not uncommon for American employees to take time off after the birth of a child. In order to do so, most employees would use paid time off, maternity leave, the Family Medical Leave Act (FMLA), or even short-term disability. Paid parental leave is a separate benefit that defines the number of paid days off for both a birthing and a non-birthing parent. It also dictates how much compensation an employee receives, when days can be taken, and how paid leave interacts with other benefits.

UCare's version of the benefit allows employees who aren't giving birth to take up to three weeks of leave, while employees who are giving birth can take up to six weeks. The company asks that employees use the benefit within the first three months after the birth. Employees, however, are allowed to break up the days off during that period. UCare also requires some verification from a health care provider. The policy also covers adoptions.

Hassanstab took off two weeks right after Graham's birth and used his last week of paid parental leave much later in order to help his wife transition back to her job. All Hassanstab had to do was OK it with his manager and fill out a simple form.

“She loved it,” Hassanstab says of his wife. “It was great. She went back for two days that week so she could slowly transition back. It worked out really well.”

Early adopters

Hassanstab and his UCare colleagues are some of the very few American workers who are offered paid parental leave. In Europe, the benefit is nearly ubiquitous and is often quite generous, with some companies allowing employees to take anywhere from six to 12 months.

So far, the largest employers to offer paid parental leave here at home are probably state governments. California, New Jersey, New York, and Rhode Island have enacted paid parental leave for state employees, according to the National Council of State Legislatures.

Each state's benefit is different. California's standard benefit is 55 percent of weekly salary, maxing out at $1,104 for a term of six weeks (San Francisco recently issued an ordinance that will go into effect in 2017, requiring companies to pay the remaining 45 percent).

In New Jersey, paid parental leave is based on 66 percent of weekly wages, with a maximum of $604 for up to six weeks, and Rhode Island's maximum weekly benefit is $770 for up to four weeks.

In April, New York enacted its family leave mandate, making it the most comprehensive leave in the country with 12 weeks paid time off. The plan — slated for implementation in 2018 — will start at eight weeks at 50 percent of pay, and reach 12 weeks at 67 percent of pay in 2021.

In the private sector, Paypal — the online money transfer site — offers eight weeks of paid leave. And as with many other benefits, Silicon Valley employers lead the way in offering paid parental leave. Facebook CEO Mark Zuckerberg took two off months after the birth of his first child, while Netflix offers up to a year of paid parental leave.

Political ramifications

Rep. Carolyn McCarthy, D-NY, has worked to pass paid parental leave for federal employees. While the proposal has been met with opposition, McCarthy hopes the effort to build support for the benefit in Congress will grow.

“I remember being a young mother and asking about the leave policy when I became pregnant,” McCarthy says. “I was told, 'What leave? You just leave!' I was also the first member of the New York City Council to give birth while in office, so I understand the perspective of working moms. In Congress, one of the first votes I cast was to pass the Family and Medical Leave Act. But the fact is that too many Americans cannot afford to take unpaid leave. The Federal Employee Paid Parental Leave Act would provide six weeks of paid leave to make sure that hardworking middle-class parents can take the time off they need to care for a new child.”

Late last year, President Barack Obama signed an executive order that made it possible for agencies to offer up to six weeks of parental leave. However, efforts to pass a national law for paid parental leave have been less successful. Supporters of such a law point to the family advantages, while opponents point to potential costs to business.

“People sometimes ask me why the country hasn't implemented a national policy,” says Maya Rossin-Slater, assistant professor of economics at the University of California-Santa Barbara. “The answer is there's a lot of pushback saying that the policy would be costly to small business or that it could lead to discrimination — employers being less likely to hire them.”

As an early adopter of paid parental leave, UCare hosted Secretary of Labor Thomas Perez last summer, in addition to a who's who of local Minnesota politicians, including the mayors of Minneapolis and St. Paul as well as Congressman Keith Ellison. Perez visited UCare as part of a national tour to discuss flexible workplace policies, including paid parental leave.

“Our best ambassadors for change are businesses like UCare, who have been making the business case for the enlightened self-interest that's involved,” Perez said at the time. “But you shouldn't have to win the boss lottery to stay home for a few weeks after your kids are born.”

On the campaign trail, Clinton has touted a plan that would guarantee up to 12 weeks of paid leave for a new child. Under her plan, workers would receive a percentage of their income during the time off. She says the benefit would be funded by higher taxes on the wealthy, according to her website. For his part, Bernie Sanders would guarantee 12 weeks of paid time off as well. Sanders, however, would build a program like Social Security and require workers to pay “the price of a cup of coffee per week” for the program out of their paycheck, according to his website. Republicans have largely opposed paid parental leave.

Why offer it?

Hassanstab says there were many positives that came out of his paid parental leave benefit. Those days off, he says, meant he didn't have to return to work the day after his wife came home from the hospital. Such a concern, he says, could have made him less productive or more prone to making mistakes.

“Knowing [your benefits] are there for you when you have to use them is great,” Hassanstab says.

“It also gave me a sense that my organization was looking out for my interests. I would never have guessed the non-birthing parent would be given three weeks of time. I never even thought it was an option; so when they gave me something, it was delightful. The salary was like a bonus or a raise. I started to have a deeper appreciation for the benefits team and the way they look out for us as employees.”

At UCare, there were plenty of reasons to add the benefit. Company officials say paid parental leave increases employee retention and helps show that the company is family friendly.

“There were far more arguments or considerations to move forward with parental leave than not,” says Pat Schmitt, vice president of human resources and organizational effectiveness at UCare.

“We absolutely support new parents taking the time they need to bond with their families and give their children a good start. This is another benefit that we're adding to build our family-friendly offerings. As we prepare for the future, we look to the benefit to help us attract and retain highly talented employees, but also employees who are looking for an employer where family-focused benefits are important.”