Nearly seven in 10 U.S. employers say compliance with state legislation is one of their top three concerns amid the expansion of paid disability and sick leave, according to a new survey by Mercer.
The survey, which polled more than 600 employers, found nearly three-quarters (72 per cent) reported increasing resources to ensure compliance. Two-thirds (66 per cent) of employers cited improving leave administration as one of their top three concerns, up from just 41 per cent in 2021.
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The survey also found paid parental leave has increased substantially over the past decade, with 73 per cent of employers now offering this form of leave, up from just 25 per cent in 2015. On average, U.S. companies offer eight weeks of paid parental leave.
Employers are also making paid parental leave programs more inclusive by offering paid leave to employees who become parents through adoption (67 per cent) or surrogacy (33 per cent).
Roughly a third (32 per cent) of employers provide flexible paid time off to at least some of their employees, up from 20 per cent in 2021. Notably, 11 per cent now offer flexible PTO to all workers, a marked change from prior years when typically only executives or salaried employees enjoyed this benefit.
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While employers have long provided paid bereavement leave to mourn the loss of an immediate family member (95 per cent), they’ve recently started to offer time for other significant losses, such as for the death of an extended family member or close friend (54 per cent), pregnancy loss (62 per cent) or miscarriage (58 per cent).
The percentage of employers observing Juneteenth as a company holiday jumped from nine per cent in 2021 to 41 per cent in 2024, while the percentage of those observing Martin Luther King Jr. Day increased from 55 per cent to 63 per cent. With the addition of these holidays, the median number of fixed holidays offered by employers has risen from nine to 10 days.
“More companies are recognizing the importance of paid leave as a way to communicate their values and priorities to their employees,” said Rich Fuerstenberg, a senior partner in Mercer’s U.S. health and benefits practice, in a press release. “By providing paid time off for significant events and observing holidays that hold cultural and historical significance, employers are demonstrating their commitment to fostering an inclusive and supportive work environment. These initiatives not only benefit employees but also contribute to a stronger sense of community within the organization.”
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