Jim Jantz, JD
Director of Compliance – Absence, Disability, & Life
More than a dozen Paid Family and Medical Leave (PFML) laws are already in effect across the U.S., with four more launching soon. Delaware’s Paid Leave (DE PL) program, starting January 1, 2026, adds some unique features that employers should be aware of. This guide breaks down the key elements and what you need to know to prepare.
Who must participate?
Your participation depends on how many employees primarily work in Delaware:
- If you have fewer than 10 employees, you’re exempt. This also applies to federal government employees and businesses closed for 30 or more consecutive days each year.
- If you have 10 to 24 employees working mainly in Delaware, you must provide Parental Leave only.
- If you have 25 or more employees, you’re generally expected to offer full coverage, including Parental, Medical, Family Caregiver, and Military Qualifying Exigency Leave.
Counting your employees
To figure out your employee count, count those who primarily work in Delaware and meet the Family and Medical Leave Act (FMLA) “covered individual” criteria. Some employees may opt out if they don’t meet eligibility, but this requires a signed waiver from both you and the employee—especially if both parties contribute to the program.
According to the Delaware Department of Labor, employee counts are based on each company’s federal tax ID number (FEIN). If you operate multiple separate entities in Delaware, each is counted separately—unless the Delaware Department of Labor considers your companies an “integrated employer.” This means they may combine employee counts if your companies share management, operations, labor relations, or ownership.
Changes in employee count
If your employee count crosses a threshold, you must notify your employees within 30 days and provide the required leave type for at least 12 months. For example, if you grow from 9 to 10 employees, you need to offer parental leave. If your count drops below a threshold for 12 consecutive months, you can stop providing that coverage—but you must give employees 30 days’ notice.
Voluntary coverage
You can choose to offer coverage for any leave type even if you’re not required to based on your employee count.
Who is eligible?
An eligible employee is someone who works at least 60% of their hours physically in Delaware each calendar quarter and meets these criteria at the time they apply for leave:
- Employed by you for at least 12 months
- Worked at least 1,250 hours in the past 12 months
Contributions and payroll deductions
Contributions start January 1, 2025—one year before benefits begin. The total rate is 0.8% of wages, split as follows:
- Parental leave: 0.32%
- Medical leave: 0.4%
- Family caregiver + military qualifying exigency: 0.08%
You can share up to 50% of the cost with your employees through payroll deductions, or choose to pay a larger share yourself. Contributions only apply to wages earned while working in Delaware and are capped at the Social Security taxable wage base ($176,100 for 2025).
If you change your contribution split, you must notify employees by December 1 for the change to take effect January 1 the following year.
Benefit amounts
Benefits are based on wages earned in Delaware during the 12 months before leave. Employees can receive up to 80% of their average weekly wages, capped at $900 per week for 2026 and 2027 (subject to annual updates).
Leave entitlement
You must provide up to 12 weeks of leave in a 12-month period, using any of the four FMLA leave year methods (calendar year, fixed year, forward-looking, or rolling backward).
- Parental leave: 12 weeks, to be used within one year of a child’s birth, adoption, or placement.
- Medical, family caregiver, and military qualifying exigency leave: 6 combined weeks over 24 months.
Employees can take leave intermittently, but in minimum increments of one full workday.
Coordinating DE PL with other benefits
DE PL runs concurrently with FMLA and may overlap with your other leave or disability programs (like Short-Term Disability). You can require employees to use up to 75% of their accrued PTO before DE PL kicks in. PTO used during DE PL counts toward the leave period.
You must have a written policy explaining how DE PL coordinates with your other leave and disability benefits. Also, notify employees if your Short-Term Disability or other paid leave benefits are secondary to DE PL, meaning those benefits will be reduced or offset.
Filing claims
All DE PL claims are filed through the Delaware LaborFirst Portal. Both you and your employee will get automated notifications when a claim is submitted.
After reviewing the claim, you’ll receive a notice about whether the leave qualifies, the weekly benefit amount, and the approved leave length. You then decide whether to approve or deny the request. If approved, DE PL pays benefits every two weeks, starting within 30 days.
Private plan options
You can opt out of the state plan by offering a private plan that meets DE PL requirements. Private plans can cover all or some leave types, with the state plan covering any gaps.
Private plans can be self-funded or insured, but employee costs can’t exceed what they’d pay under the state plan. If your private plan costs less, employees only pay 50% of the lower cost.
Self-funded plans require at least 100 covered individuals or proof you can manage the plan properly, plus a surety bond equal to one year of state contributions.
The deadline to apply for a private plan for benefits starting January 1, 2026, is December 1, 2024.
Important dates to remember
- December 1, 2024: Private plan application deadline for 2026 benefits.
- December 2, 2024: Notify employees about upcoming payroll contributions.
- January 1, 2025: Contributions begin.
- April 1, 2025: First quarterly reporting and contributions due.
- October 1 – December 1, 2025: Annual private plan renewal period.
- January 1, 2026: DE PL benefits begin.
- December 31, 2029: Grandfathered private plans expire.
How Marsh McLennan Agency can help
Marsh McLennan Agency can help you understand Delaware Paid Leave and other PFML programs. We provide guidance on insurance-related aspects and help you align your benefits strategy with your organizational goals.
Contact us to learn more about how we can support your organization through these changes.
