State Maternity Leave Benefits - Who Are the Winners and Losers?

Collecting state maternity leave benefits is a hit or missThe New York state disability program replaces up to
proposition. Many women assume that the federal orfifty percent of income, and caps out at $170 per
state government will automatically provide at leastweek. The $170 per week cap represents fifty
some level of maternity leave pay when they deliverpercent income replacement for a woman earning
their baby. In the U.S. government sponsored maternity$17,680 annually.
leave benefits are the exception rather than the rule.For a state with very high incomes, the NY level of
There is no federal government program, and only fiveincome replacement is nominal. A couple might be able
states have mandated short term disability programs into get by as long as everyone is healthy, and mom
place. And some of those programs fall woefully short.can return to work right away. But what will happen if
Women working in one of the forty five states with nomom needs to leave work before her delivery, or
mandated state programs have to plan ahead, andexperiences delivery complications, or has an accident,
find the right coverage before getting pregnant.or get sick?
Many European countries mandate a significant levelAnd what about the women in the forty five states
of paid maternity leave benefits. Not so in the Unitedwith no mandated state coverage at all? The same
States. There is the Federal Family Medical Leave Actquestions apply as well. If they work for an employer
(FMLA), which provides unpaid job leave protection forwho provides paid maternity benefits - great. But this
women during maternity leave. But of course "unpaid"represents a very small minority. Some may be lucky
means there is no income replacement whatsoever.enough to work where there is a company subsidized
Five states have state mandated short term disabilitygroup short term disability program that will protect
insurance which pays a benefit for a normal maternitythem while they work for that particular employer.
leave: California, Hawaii, New Jersey, New York, andOthers may be lucky enough to have a voluntary
Rhode Island. That leaves forty five states with noshort term disability option which they can pay by
paid maternity leave coverage at all.payroll deduction, and take with them if they leave the
If you live in one of the states with mandatedemployer.
coverage consider yourself lucky - up to a point. TheThe largest segment has none of these options.
state programs provide a minimal amount of coverage,Fortunately, they can purchase individual short term
and it may not suffice for many women. The Newdisability that covers pregnancy and maternity leave.
York state disability program illustrates this best. NewProvided they purchase a policy before getting
York has one of the country's highest cost of living,pregnant, an individual short term disability insurance
and along with that comes the highest per capitapolicy will cover their normal labor and delivery -
income level. This is especially true in New York City.creating maternity leave pay.