Paid maternity and paternity leave are among the hottest benefits-related topics these days. In late June, President Barack Obama called on America to offer paid leave to new parents.

The city of Austin, Texas, stepped up last year, deciding to offer paid parental leave to new moms and dads. And while many family leave advocates are applauding the city for its action, the response may give pause to employers thinking of doing the same thing.

According to the Austin American-Statesman, the city had budgeted for 60 of its employees to use the new benefit the first year, once it became available last October. Instead, in just the first seven months since it became available, 162 parents took the paid leave offer. The bill: $691,000 — about twice what the city had planned to spend for the first 12 months, the newspaper reported.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.