Paid Parental Leave Access Grows in Four States
New research shows that private employers in several states are increasingly offering voluntary leave to support new parents.
Updated on Oct. 28, 2026 in Child Care
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A new study by Emily Oster and Rebecca Jack examines paid parental leave access across Arkansas, Illinois, Mississippi, and Nebraska. Researchers found that while these states lack state-level mandates, a significant portion of employers now offer voluntary company-funded leave.
Why it matters
Understanding current voluntary leave trends is vital for workers managing their career and family health, as many private employers fear high costs despite evidence that over half of programs incur no extra expense. This data helps clarify how local employer culture and tax incentives shape access to essential recovery and bonding time.
A survey of employers across four states indicates that 15.5% of companies in Arkansas, 16% in Mississippi, 27.3% in Illinois, and 28.6% in Nebraska offer company-funded leave. While 55% of these employers report no extra costs, the exact long-term health outcomes for these families remain under investigation.
The players
Emily Oster
An economist and researcher who studies parental leave and family health outcomes.
Rebecca Jack
A researcher specializing in economic data related to workplace benefits and family policy.
The details
Employers often fund these benefits through tools like short-term disability insurance, PTO-bridging arrangements, and pooled risk models. Many businesses utilize the federal Section 45S employer credit to offset the costs of providing paid family and medical leave. These voluntary initiatives are influenced by employer culture, which serves as a major driver for access in the absence of state-level mandates.
Timeline
2008-2013: Parental leave usage period for comparison study group.
2022-2026: Parental leave usage period for recent study group.
2026: Healthy Moms, Healthy Babies America nonprofit launch.
Health Landscape
This development highlights a shift in private-sector workplace health benefits in states lacking formal parental leave mandates. It follows the federal Section 45S employer credit, which encourages companies to prioritize paid time off as a retention tool.
Employees in these states should review their specific company handbook, as voluntary benefits are becoming more common than in previous years. If your employer does not offer leave, discussing the benefits of retention with your HR department or leadership may be a productive first step.
The takeaway
Voluntary employer leave programs are increasingly accessible and often cost-neutral for businesses. Parents should evaluate their company's internal policies and federal tax incentives, as these structures directly influence the leave options available for prenatal and postpartum health needs.
Further reading
For more on the intersection of workplace policy and family wellbeing, see our guide to Child Care.
More information
Access the full study and state-specific data for a breakdown of regional benefit trends.
Source note: This article includes information reported by AMP.
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Should private employers voluntarily offer paid parental leave in your area without state mandates?
