The question of whether an individual can work while on maternity leave is complex, as the answer depends entirely on the source of the leave they are utilizing. Maternity leave is not a single benefit but a combination of different programs, each carrying unique rules regarding employment. Understanding the distinctions between these forms of leave is the first step in navigating the financial and legal implications of working. The ability to work while on leave is tied directly to the specific conditions of the benefit providing job security or income replacement.
Defining Maternity Leave: Job Protection Versus Income Replacement
Maternity leave is comprised of two distinct components: job protection and income replacement. Job protection, often provided by federal or state law, ensures that an employee’s position, or an equivalent one, is waiting for them upon their return. This type of leave focuses on securing employment continuity rather than providing wages.
Income replacement benefits provide a partial salary while the employee is away from work. These benefits are sourced through private Short-Term Disability (STD) insurance policies or government-mandated State Paid Family Leave (PFL) programs. The rules around working are significantly more restrictive when receiving income replacement. This is because the funds are predicated on the employee being unable to perform their work duties.
The Legal and Financial Risks of Working During Leave
Working while receiving income replacement benefits carries substantial legal and financial risks, as these payments are based on a certified inability to work. Both private STD policies and state PFL programs require the recipient to attest that they are physically unable to perform their regular duties or are taking time for bonding and care. Engaging in any paid work, even minimally, can be interpreted as a violation of this core requirement.
If a benefit provider discovers that a recipient was working, they can demand the immediate repayment of all benefits received, creating a significant financial burden. Misrepresenting one’s ability to work to collect benefits can be considered insurance fraud, leading to penalties and potential legal action. The employer often has a duty to report any working activity to the insurer or state agency, especially if the work is for the primary employer.
Discovery of unauthorized work can happen if an employer reports the activity or if the state agency cross-references earnings reported through tax documents. Claimants must report all income received while on leave, including self-employment income and bonuses. Failure to report this income can trigger an investigation, resulting in an overpayment finding, penalties, and disqualification from future benefits.
Working for Your Primary Employer During Leave
Performing work for the employer that granted the leave is a sensitive area, even if the intention is only to remain connected. Many company or statutory leave policies allow for a limited number of “Keeping in Touch” (KIT) days. These days permit the employee to attend training, important meetings, or perform minor tasks without jeopardizing their leave or pay.
An employee is typically permitted to work up to ten KIT days throughout their leave period. Working even a few hours counts as an entire KIT day. Exceeding the maximum number of days will result in the loss of income replacement benefits for that week and can trigger the end of the leave period. Employees should review their company’s internal policy regarding communication to ensure all activities are logged correctly.
Unauthorized work for the primary employer can also undermine the job-protected portion of the leave. If an employee performs job duties, it suggests they are not truly unable to perform the essential functions of their job. This action can be used to argue that the employee is not eligible for the leave, potentially weakening their claim for job protection upon return.
Working a Second Job or Freelance Gig
The rules governing a second job or freelance gig are universally prohibitive when receiving income replacement benefits. Eligibility for both STD and PFL is based on the inability to work or a need to bond with a new child. Collecting payment for any work, regardless of the source, violates the terms of the benefit, as earning money signals an ability to work.
The risk of discovery for external work is significant. Payment received as a 1099 contractor is reported to the Internal Revenue Service, which can be cross-referenced by state and private benefit administrators. All income earned, including self-employment income, part-time wages, or commissions, must be reported to the benefit provider. Failing to disclose this income is considered misrepresentation and carries severe financial penalties.
Practical Implications and Setting Boundaries
Beyond the legal and financial repercussions, working during maternity leave introduces professional and personal costs. Taking on work directly undermines the purpose of the leave, which is to allow for physical recovery and bonding with the new child. This can lead to increased stress, exhaustion, and burnout, defeating the restorative intent of the time away.
Professionally, working while on leave can set a poor precedent with colleagues and management. It may create an expectation that the employee is always available and that their job can be done remotely, even during a period intended for absence. To protect personal well-being and professional standing, it is advisable to establish clear boundaries before the leave begins. Communicate that all work-related contact will be limited to pre-approved channels and within the strict limits of the leave policy.