Adoption Benefits (Encyclopedia)

Adoption Benefits Becoming More Common

Employee adoption benefits vary but they are becoming more and more available. In 1990, one study found only 12 percent of employers offered benefits to adoptive parents: by 2004 the proportion had increased to 39 percent, with an average maximum reimbursement of $3,879 for adoption expenses.

Companies offer adoption benefits for different reasons, including maintaining employee productivity, employee retention, presenting a positive public image, and to ensure equity in benefits for all employees. Some companies have a more personal incentive. For example, Dave Thomas, the founder of Wendy's International, was adopted. Wendy's offers employees time off for adoption, financial assistance, and other benefits. In addition, the Dave Thomas Foundation for Adoption works to promote adoption awareness.

Adoption benefits can be grouped into three main categories: information resources, financial assistance, and parental leave. Many employers will offer one or more of these benefits with each adoption.

Information resources includes referrals to adoption agencies, organizations, and specialists. Financial benefits can vary in both type and extent. Some employers offer a lump sum payment, usually after the adoption is finalized. Others will pay certain fees or will reimburse at a higher rate for a child with special needs. A typical adoption benefit will include reimbursement of certain itemized expenses at 80 percent of cost, up to a pre-established ceiling (on average, about $4,000.)

Parental leave adoption benefits may be covered under the Family and Medical Leave Act, in which employers with 50 or more employees are required to offer mothers and fathers up to 12 weeks of unpaid leave for the birth or adoption of a child. Some companies will allow parents to combine paid leave (sick time, vacation) with unpaid leave to extend their time away.

In most cases, adoption benefits will have some limitations, such as being offered only to full-time employees or only those who have been with the company a certain length of time. For example, Wendy's International covers eligible adoption expenses up to a maximum of $4,000 per adoption for employees who have completed one year of service and participate in the company's Group Insurance Program. The reimbursement rate increases to $6,000 (maximum) for a child with special needs. Financial assistance covers specific expenses: licensed adoption agency fees, legal costs, state-required home study, etc. Paid leave of absence is available, with the amount determined by the employee's length of service.