Baby Steps
This topic has been buzzing around our office lately, and for good reason—our Marketing Director, Danielle, is officially out on maternity leave after welcoming her sweet baby boy, Beau, on January 2. (Feel free to pause here and hit us with all the heart emojis.) Since Danielle’s big news, we’ve been fielding questions from other small business owners who want to know: “How are you handling this?”
As more people leave corporate gigs to join small businesses, this conversation is heating up. How do you balance what feels right—supporting your people—with what’s realistic for your budget? It’s not easy, but it’s important. So, let’s unpack this together. We’ll share market trends, laws to be aware of, and we’ll even throw in a few tips along the way.
Big Business Standards vs. Small Business Realities
First, let’s get some context. Companies with more than 50 employees are required to provide unpaid, job-protected leave under the Family and Medical Leave Act (FMLA). But FMLA doesn’t guarantee paid leave—it just ensures employees won’t lose their jobs while they’re away. Most larger companies offer short-term disability insurance to cover maternity leave at about 66% of pay, but this doesn’t always extend to paternity leave.
For small businesses, it’s a whole different ball game. You’re likely not required to follow FMLA, but state and federal laws still provide some guidance. And in Illinois, we’ve got plenty to chew on. Here are the key players you need to know:
Illinois Human Rights Act (IHRA): Protects from discrimination based on pregnancy, childbirth, and family responsibilities.
Illinois Pregnancy Discrimination Act: Treats pregnancy, childbirth, and related conditions as a temporary disability.
Illinois Paid Leave for All Workers Act: Allows workers to earn up to 40 hours of paid leave from work each year to be used for any reason.
Pregnant Women’s Fairness Act: A federal law that mandates employers to provide reasonable accommodations to pregnant employees experiencing limitations.
Americans with Disabilities Act (ADA): Supports an interactive process for accommodations around temporary disabilities, including pregnancy.
That’s a lot, right? But don’t worry—we’re here to help you untangle it.
How Are Small Businesses Handling This?
The beauty of small businesses is their flexibility. The challenge? That flexibility can feel overwhelming when you’re trying to do the right thing. Here’s what we’re seeing:
Building From What’s Already in Place
Start with your handbook. Got a sick leave or short-term disability policy? Perfect—that’s your foundation for crafting a parental leave policy. If you’re flying blind with no policies addressing long-term absences, you’ll need to build from scratch (we can help!).Separate Maternity and Paternity Policies
Some small businesses offer paid leave for maternity while keeping paternity leave unpaid. Others provide unpaid time off across the board, while a few even offer paid leave for both parents. Consider your vacation, PTO, or Paid Leave policies and decide what time your employee is required to use or may save for when they return from leave. The beauty of owning a small business? You get to decide what fits your culture and budget.Flexible Transition Plans
Phased returns are becoming popular. Employees can ease back in with part-time schedules or remote work before jumping into full-time responsibilities. It’s a win-win: employees feel supported, and businesses maintain continuity.
Pro Tips for Navigating Parental Leave
Let’s be honest: parental leave can feel like navigating a minefield. But with a little clarity, you’ll get through it.
Put It in Writing: Don’t wing it. Outline the length of leave, compensation (if any), and expectations for returning to work. No surprises, no misunderstandings.
Get the Doc’s Opinion: Use ADA forms to understand the accommodations your employee may need, especially if their position involves physical tasks. It’s a simple way to ensure clarity and avoid confusion down the road.
Think Bigger: Policies don’t just impact the person going on leave. They reflect your company culture and can even help attract top talent.
Trends to Watch
If you’re feeling stuck, look to these small business trends for inspiration:
Gender-Neutral Leave: Offering equal leave for all parents is gaining traction, recognizing that caregiving responsibilities aren’t tied to gender.
Extended Leave Options: Unpaid leave beyond the standard 6–8 weeks shows support, even if budgets are tight.
Creative Perks: Think outside the box—childcare stipends, mental health support, or even flexible scheduling.
Final thoughts
Parental leave policies might seem overwhelming, but they’re also an opportunity to show your team you’ve got their back. And honestly, creating one doesn’t have to feel like solving a Rubik’s Cube in the dark.
Want a little help sorting it all out? That’s what we’re here for. Whether you need a full policy refresh or just a brainstorming session, we’re ready to dig in and make this work for your business.
P.S. We’re not lawyers, and this blog isn’t legal advice—just our experience managing maternity leave in small business. For legal questions, consult your lawyer!
P.S.S. I offered 12 weeks of paid leave. Danielle is mostly offline, checking in periodically and attending meetings only when her expertise is absolutely necessary. Our plan is a gradual transition back—easing into work before she's back in front of clients officially.