Paid Maternity Leave

• An employee receiving paid maternity leave from her employer is not usually eligible to receive state-funded disability pay or may receive state benefits at a reduced rate. The employer must still comply with the terms of the Family and Medical Leave Act in holding the pregnant employee's position open so the employee can return to work. Taking leave for a pregnancy and to care for a newborn child should have no impact an employer's disability insurance since the paid maternity leave is a fringe benefit and is paid from an entirely separate fund.
  
  

State Maternity Leave Laws

• Each state has varying laws allowing a woman to receive temporary disability pay while on medical leave to give birth. According to pregnancy advice website Baby Center, temporary disability pay can last for six to 12 weeks depending on the particular state laws where the pregnant employee lives and works. Temporary disability only pays a portion of the employee's salary, between half and two-thirds of normal pay and has a time limit per any 12-month period. Disability benefits stop when the time limit runs out or the employee returns to work, whichever happens first.
  
  

Determining Disability Requirements

• An employee applying for temporary disability benefits to deal with a pregnancy or recent childbirth may have to submit to medical examination as required by state law. For example, according to the New York Worker's Compensation Board, a physician or certified nurse midwife must submit medical reports for the state to approve temporary disability pay. If the employee experiences complications during or after the pregnancy and must remain on disability for an extended period, the state may require more detailed medical reports regarding the condition. Disability insurance will continue to pay a portion of the employee's salary until she reaches the state's maximum yearly benefit period.
  
  

Employer Cost Responsibility

• It is the employer's legal obligation to continue to pay disability insurance as a condition of doing business in a particular state. It is illegal for an employer to compel an employee, including a worker returning from maternity leave, to pay all or a portion of the employer's disability insurance. The Family and Medical Leave Act also requires an employer to restore the employee's salary, work schedule and benefits upon return as if the employee had never left the position.