Zoom Communications reduced paid parental leave for birthing parents from 22-24 weeks to 18 weeks and for non-birthing parents from 16 weeks to 10 weeks in May 2026 [1]. The company’s move reflects growing pressure on employers to trim benefits in response to rising healthcare expenses.
As healthcare costs rise, some employers expect increases in the low double digits for 2027, prompting Chief Financial Officers to reexamine employee benefits, including parental leave [1]. Rich Fuerstenberg, senior partner at Mercer’s health practice, said, "When [healthcare costs rise], everything is on the table." He added, "If I can't show why being above market adds value, then it's going to be considered fat from a show-me-the-numbers perspective" [1].
Employers are also realigning paid parental leave programs to better match state-mandated programs, which typically offer about 12 weeks of paid leave [1]. Shauna Bryngelson, senior vice president at Gallagher’s absence and productivity practice, noted, "As state benefits expand, often offering around 12 weeks of paid leave, companies are reassessing how their programs align." She added that she would be "really surprised to see [paid parental leave] go away," signaling that companies plan to maintain some level of paid leave despite cost pressures [1].
Benefits consultants expect companies to continue offering paid parental leave but anticipate more scrutiny, with possible reductions or refinements rather than complete eliminations [1]. The reductions by Zoom Communications are among the first high-profile cases as employers begin 2027 budget planning and prepare to adjust benefits to contain costs.
Employers will review and adjust paid parental leave programs throughout 2027 amid rising healthcare costs and evolving state policies, balancing cost control with competitive benefits [1].
