Healthcare cost surge makes parental paid leave benefits a target for workplace cuts

as healthcare costs surge into low double-digits for some companies, employers are cutting paid parental leave — one of the more generous benefits added in recent years. zoom communications reduced birthing parent leave from 22-24 weeks to 18 weeks, and non-birthing parent leave from 16 to 10 weeks. deloitte is reportedly halving parental leave to 8 weeks from 16 for internal support roles starting in 2027. mercer's rich fuerstenberg said he's fielded requests from companies to adjust leave programs, especially if they're above market norms. "if i can't show why being above market adds value, then it's going to be considered fat," he said. the national average for paid leave is around 12 weeks, aligning with many state programs, according to hub international's jj jackson. not all companies are cutting. a brown & brown survey of 1,241 employers found 71% offer paid parental leave beyond state requirements, and 69% of those are increasing the benefit amount. starbucks doubled paid leave for hourly workers last year — birth parents now get 18 weeks, non-birth parents 12. but with 14 states plus d.c. mandating paid family leave, and the job market soft, consultants warn cuts carry reputational risk. "changes can feel personal and disproportionate," said wtw's alex henry.