Paid family leave is a type of employee leave where an extended period of absence granted to employees by employers—typically for the birth of a child or illness—where wages are either fully or partially paid.

When combined with other benefits, it can serve as a significant indicator of an organization’s company culture. 

There is no federal legislation requiring employers to offer partial or fully financially reimbursed family leave in the United States.

However, several states do offer these benefits for employees, and the Family and Medical Leave Act (FMLA) does require up to 12 weeks of unpaid, job-protected leave for certain employees.

Much like other benefits offered by employers, paid family leave can enhance a worker’s experience on and off the job. 

This type of employee leave can serve as an important factor in recruiting and retention, notably for individuals who are younger and anticipate having children in the near future.

For example, new or aspiring parents may seek out jobs that provide paid family leave. Simply knowing that you can take off work to attend to your newborn and still receive your entire paycheck (or a portion of it) is a significant draw for new hires and existing employees.

Related Terms: Family and Medical Leave Act (FMLA)