Even in states that have a mandated Paid Family Leave (PFL) program, many public‑sector employers aren’t automatically included. Roughly 3 million federal employees and another 19.6 million state and local government workers make up America’s public workforce. This includes cities, counties, school districts, tribal governments, public libraries, and more. That’s more than 22 million people who could be left without PFL if their employer doesn’t step in.
Most state and federal employees are excluded by default, which can include public entities. A public entity is any organization that delivers services on behalf of a federal, state, or local government, such as:
This means that if you’re a public entity, your team may be expecting paid parental leave but not actually covered. Here’s a chart to quickly compare state plans.
Even in states with robust PFL programs, employees in these groups may be carved out. When that happens, public entities generally have three choices. They can either self-fund paid leave benefits, purchase a private plan that meets or exceeds the state benefit, or do nothing (which is the unfortunate and most common default).
So this is what being an "excluded employer” really means for your employees:
Even though public entities face the same talent wars, budget pressures, and productivity demands as private employers, many still overlook paid parental leave because they’re excluded from state programs. Or they assume it’s too costly to fund on their own, but skipping this benefit can quietly erode retention, equity, and public‑service quality.
Parento helps public entities offer paid parental leave with better results than self-funding or Paid Family Leave programs. Here’s what we mean:
Challenge: Talent competition with private employers
How Parento Helps: Paid leave is a top‑three benefit for millennial and Gen Z workers. Offering it keeps your candidate pipeline strong.
Challenge: Budget constraints
How Parento Helps: Paid parental leave insurance through Parento reimburses the employer for paid parental leave expenses.
Challenge: Administrative overload
How Parento Helps: Our Leave Concierge and Parento Portal handles employee questions, coordinates with any state or disability programs, and lightens HR’s paperwork burden.
Challenge: Whole family wellbeing
How Parento Helps: Our parent coaching and support through the Parent Experience Program supports employees and helps them return to work full-time.
Interested but not sure if you’re covered? Follow these steps or schedule a quick chat with our team to find out together.
Pro‑tip: A handful of states let public entities opt in to the state plan even if they’re excluded by default. It’s worth the phone call!
Public entities exist to serve communities, but that mission depends on a healthy, supported workforce. If your organization is excluded from your state’s PFL program, you don’t have to leave employees (or budgets) hanging. Whether you opt into a state plan, self‑fund, or partner with Parento, offering paid parental leave is a strategic investment in retention, equity, and public service excellence.
Ready to take the next step? Our team would love to chat to help every public‑sector parent get the time they need to care for their growing family.
