Delaware Paid Leave Important Reminder

July 02, 2024

As we reported in the May 26, 2022, edition of Compliance Corner, payroll withholding of employees’ contributions under Delaware Paid Leave (aka PFML) is scheduled to begin on January 1, 2025, and the benefits will be available to eligible employees starting January 1, 2026. Employers who are interested in electing a private plan option, as well as smaller employers who voluntarily want to opt into the Paid Leave program, can request to do so through the employer portal (“Delaware LaborFirst”) from September 1, 2024, to December 1, 2024. 

Employers with employee(s) working in Delaware should be aware that the Delaware Paid Leave program is unique compared to other state PFML programs in many ways. For example, an employer who has nine or fewer employees in Delaware is exempt from complying with Delaware Paid Leave. An employer with 10 or more employees working in Delaware will be subject to the Delaware Paid Leave, and the applicability of required coverage (e.g., bonding, employee’s own serious health condition, or employee’s family member’s serious health condition) is determined by the employer’s size. 

For the determination of an employer’s employee count, employers should review Delaware Paid Leave guidance and understand the counting rules, including waivers, well in advance so that they are aware whether and which line(s) of coverage they are required to offer under the Delaware Paid Leave program. (For the counting rule, please refer to Delaware Paid Leave FAQ.) 

Importantly, employers should be aware that, unlike other state’s PFML programs, employers will need to determine the employee eligibility to take Delaware Paid Leave and manage the claims adjudication process to verify if an employee’s application for leave is justified under the plan. Some employers may be interested in exploring a private plan option over the state-based program to minimize the administrative burden of the claim and eligibility process. 

For further information, please download a copy of the PPI publication Quick Reference Chart: Statutory Disability & Paid Family and Medical Leave Programs and refer to Delaware Paid Leave’s main site.