[Employer Action Needed] Delaware Paid Family and Medical Leave Law

Delaware has enacted the Healthy Delaware Families Act, requiring job-protected, paid family and medical leave for Delaware employees.


Published: 10.23.2024

Updated 9/19/2024
Covered employers (those with 10+ Delaware-based employees) must register for LaborFirst, the state’s system for managing Delaware Paid Leave. Registration is open now and must completed by January 1, 2025. Employers who want to a private plan exemption can do so through the LaborFirst portal

Delaware has also released the model Notice of Employee Rights, which employers must display at workplaces and provide to employees upon hire, when an employee requests covered leave, and when an employer is aware of a covered leave beginning January 1, 2025.

Delaware has released helpful FAQs and guides for employers, which can be accessed here.
 
Covered Employers & Covered Employees 
Employers are subject to the Program if they employ 10 or more “eligible employees” in Delaware.
 
Eligible employees are those that: 
  1. Work primarily in Delaware 60% of their time or more.
  2. Have been employed for at least 12 months by the employer for whom leave is requested; and 
  3. Have been employed for at least 1,250 hours with the employer during the 12-month period. 
Note: (1) employees who are assigned to a Delaware team but telecommute from their homes outside of Delaware and (2) Delaware employees who are on temporary assignment outside of state are counted.
 
Employers that employ less than 10 employees in Delaware during the previous 12 months and employers that are closed for 30 consecutive days or more per year are exempt from the Program. Schools are not exempt.
 
Employer Action 
To prepare for PFML, employers with 10 or more employees in Delaware should:
  • Register for a LaborFirst account by January 1, 2025;
  • Determine whether they want to provide a private plan in lieu of employer/employee contributions to the state PFML fund;
  • Apply for a private plan exemption through LaborFirst (first application period is from September 1, 2024 through December 1, 2024); and
  • Display the workplace poster at Delaware worksites and provide employees with notice at hire, when an employee is taking qualified leave, and when an employer is aware of qualified leave beginning January 1, 2025.
Contributions to fund the Program will begin on January 1, 2025. The initial contribution rates are as follows for 2025 and 2026: 
  • Medical Leave Benefits: the contribution rate for medical leave benefits is 0.4% of wages. 
  • Family Caregiving Benefits: the contribution rate for family caregiving benefits is 0.08% of wages. 
  • Parental Leave Benefits: the contribution rate for parental leave benefits is 0.32% of wages. 
  • For a total of .80%
For 2027 and subsequent years, the state will set the contribution rate based on actuarial principals, indexed for inflation
 
Employers must pay at least 50% of the above required contributions and can deduct the remainder contributions from employees’ paychecks. Alternatively, employers can elect to pay the entire contribution (or any portion of employees’ share of the contribution). 

Employers are responsible for remitting the total contribution required. If an employer fails to deduct an employee’s share of the contribution, the employer is liable for the full amount of the contribution (including the amount not deducted from the employee’s wages). Employers who fail to remit contributions by the due date may be liable for the contribution plus interest. 

The Department has provided a model Notice of Employee Rights to comply with the notice and poster requirements.

Original Post 5/24/22
Delaware has enacted the HealthyDelaware Families Act, requiring job-protected, paid family and medical leave for Delaware employees. The leave is funded by employer and employee contributions that begin January 1, 2025. Leave benefits will become available January 1, 2026, and will provide up to 80% of workers' weekly wages.

Covered Employers and Employees
The law covers employers with 10 or more employees working in Delaware; however, only its parental leave requirements apply to employers with 10 to 24 employees.

Exceptions from the Delaware Paid Family Leave Act include:
  • Employers with 9 or fewer employees, although they may opt into the program if they choose.
  • Federal government employers are exempt. However, state government employees are not exempt.
  • Seasonal operations that are closed in its entirety for 30 consecutive days or more per year. This exemption does not include schools.
In general, employees are eligible for leave if they have been employed for 12 months by their current employer, worked 1,250 hours during that time and primarily report for work in Delaware.

Family and Medical Leave Benefits
Employers approve or deny applications for the leave, subject to appeal. 

The amount and type of leave depends on the reason for leave and the size of the group. Employers with 10-24 employees are only subject to Parental Leave. Workers receive up to 12 weeks’ parental leave per year for child bonding, through birth, adoption or foster care.

Employers with 25+ employees must offer all lines of PFML coverage, Parental Leave, Medical Leave for the employee’s own illness, Family/Caregiver Leave, and Qualified Exigency (Military Leave). While Parental leave is capped at a maximum of 12 weeks per year, Medical leave, Family Caregiver Leave and Qualified Exigency Leave are capped at a maximum of 6 weeks of leave every 24 months. Total combined Parental and Family medical leave is capped at 12 weeks per year per employee.

Workers receive 80% of their average weekly wage, up to a maximum of $900 in 2026 and 2027, with increases thereafter linked to the consumer price index.

Funding
Program funding is shared equally between employers and employees via payroll contributions. The 2025 and 2026 contribution rate is 0.4% of wages for medical leave, 0.08% for family caregiving leave and 0.32% for parental leave.

Important Dates
  • September 2024 through December 1, 2024 – By December 1, 2024, employers must register and set up an account using Delaware LaborFirst, to manage Delaware Paid Leave if they want to use the state plan. Once registered, required employers are automatically enrolled, while smaller employers can voluntarily join and larger employers may request to use a private plan.
  • January 1, 2025 – For those employers in the State’s plan, payroll deductions begin if your employees are contributing to the cost of Delaware Paid Leave.
  • April 30, 2025 – First Due Date for PFML contributions.
  • January 1, 2026 – Employees can begin to submit claim applications for payment.
Resources