Are employers allowed to offer on-site child care as an employee benefit?

In California, employers are not legally required to provide on-site child care as an employee benefit. However, they may choose to do so if they choose. Generally, the advantage employers see in offering child care is that it provides a benefit to their workers and enables them to retain and recruit desirable employees. Under California law, employers offering on-site child care must comply with state regulations. Employers must make sure their child care facilities are safe and secure, that their staff members are adequately trained, and that the facilities meet state health and safety standards. The California Department of Social Services enforces these regulations. Further, employers should be aware of federal law requirements for tax deductions related to on-site child care. Under the Consolidated Omnibus Budget Reconciliation Act of 1985, employers can provide employees with a salary reduction arrangement for dependent care expenses. The salary reduction plan allows employees to take a pre-tax deduction from their wages for any qualified dependent care costs. In general, it may be a good idea for employers to consider offering on-site child care as an employee benefit, particularly if they are looking to attract and retain quality employees. However, employers should be aware of the applicable state and federal regulations they must comply with to ensure their child care facilities meet safety and health requirements.

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Are employers allowed to offer on-site child care as an employee benefit?

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