Effective January 1, 2025, covered employers and employees must make contributions to fund paid family and medical leave (PFML) benefits provided for under the Healthy Delaware Families Act. Employers must withhold employee contributions by payroll deduction and remit both the employee and employer share every quarter. Below are key details on the leave.
Contribution Amounts
Beginning January 1, 2025, contributions total 0.8% of wages:
- Medical leave benefits: 0.4% of wages for 2025 and 2026
- Family caregiving benefits: 0.08% of wages for 2025 and 2026
- Parental leave benefits: 0.32% of wages for 2025 and 2026
An employer can deduct up to 50% of the required contributions from the employee’s wages.
Eligibility
Employees may access PFML benefits beginning January 1, 2026. PFML offers paid leave to employees who have been employed for at least one year and at least 1,250 hours with a single employer.
Employees may opt to file a waiver of the payroll contributions when their work schedule or length of employment with the employer is not expected to meet the requirement for eligibility for PFML benefits.
Coverage Requirements
Mandated coverage is determined by employer size:
- Employers with 10 – 24 employees in the state: Parental leave benefits only
- Employers with 25+ employees in the state: Medical leave, family leave, and parental leave benefits
- Employers with fewer than 10 employees or seasonal operations: Exempt but may opt-in.
Of note, employees who have filed waivers are not included in the count towards either the 10 or 25-employee threshold numbers.
Coverage Options
Covered employers can offer PFML coverages through three different risk-transfer methods:
- Public Plan (“Delaware Paid Leave”): This is the default option;
- Group Insurance Policy: Employers may purchase a Department of Insurance (“DOI”)- approved insurance policy for some or all of the PFML coverages; or
- Self-Insured Plan: If approved by the Division, employers may provide some or all of their mandated PFML coverages through an employer-administered and funded plan.
Use of Leave
Employees will get up to 80% of their wages (up to $900 per week) to cover the following:
- Care for a new child (up to 12 weeks per year);
- Care for a family member with a serious health condition (up to 6 weeks, every 24 months);
- Address a personal serious health condition or injury (up to 6 weeks, every 24 months), or;
- Assist while loved ones are on overseas military deployment (up to 6 weeks, every 24 months).
Employees are limited to a maximum of 12 weeks of total, combined leave per year. When applicable, PFML and FMLA run concurrently.
Benefits During Leave
During the leave, employers are required to maintain any health care benefits the covered individual had before taking the leave for the duration of the leave but may require the employee to pay their share of the cost of health care benefits.
Notice Requirements
Employers are required to provide notice to all employees at hire and when leave is requested or the need for leave becomes known. The notice must also be posted in a prominent location at the workplace. The applicable notice/posting is available on the PFML webpage under the section labeled, Notices.
Reinstatement Rights
Upon return from leave, employees must be restored to the position they held when the leave started, or to a position with equivalent seniority, status, employment benefits, pay, and other terms and conditions of employment, including fringe benefits and service credits.
Next Steps
Even though employees cannot begin collecting PFML benefits until 2026, employers need to be mindful of the January 1 compliance date to ensure that payroll deductions for PFML are made and the employer portions are reported and remitted to the state. Employers who utilize the services of a payroll provider should work with their payroll provider to ensure compliance.
Employers should review the applicable compliance resources on the PFML webpage for additional guidance.
HR Works Can Help
Managing employee leaves of absence is overwhelming and the various laws can be difficult to navigate, especially when leave is not your primary focus. The experts at HR Works can manage the complexities of compliance when it comes to all the changing state leave laws and more. To learn more about these services and how to leverage our compliance expertise and support, please contact us at info@hrworks-inc.com or call 1-877-219-9062.
