There has been an increased focus in recent years on parental leave policies and benefits as employers compete to hire and retain top flight talent. A recent $5 million Chase Bank settlement highlights Title VII’s unique application to parental leave policies.
Under Title VII of the Civil Rights Act of 1964, employers cannot discriminate against employees on the basis of certain protected classes. Discrimination related to pregnancy, childbirth, or maternity/parental leave constitutes discrimination on the basis of sex. Employers are required to treat a woman who is temporarily disabled due to pregnancy, childbirth, or related medical conditions similar to any other disabled employee. However, any additional benefits for either parent are at the employer’s discretion.
In the Chase matter, a male employee filed a complaint with the Equal Employment Opportunity Commission, alleging Chase’s parental leave policy discriminated against male employees. Chase offered 16 weeks of paid parental leave to the parent who was the primary caregiver to the child. But, when women applied for this leave, it was automatically granted, whereas men who applied for the leave as the primary caregiver were required to show that their spouse or partner had returned to work or was medically incapable of caring for the child. If unable to do so, the men only received 2 weeks of paid leave. Chase ultimately settled with the class of impacted employees for $5 million in May 2019.
This settlement demonstrates the tightrope employers must walk with parental leave policies. If an employer only offers maternity leave to women who are temporarily disabled due to the pregnancy, childbirth, or related medical conditions, it is not required to offer men any paid paternity leave. However, if an employer does offer maternity leave for anything other than temporary disability, such as leave to bond and care for the child, the father must receive the same parental leave as the mother. Further, if eligibility for parental leave is based on something else, such as which parent is the primary caregiver, the policy must be enforced in a non-discriminatory manner. Employers should review their parental leave policy regularly to insure compliance with Title VII.
If you have any questions about your parental leave policy, and would like assistance, contact one of the attorneys at Fishel Downey Albrecht & Riepenhoff LLP.