Delaware paid leave extension till December 15
Are you planning to use a private insurance plan instead of the Delaware Paid Leave plan to provide paid Family and Medical Leave benefits? In that case, you must submit your policy for consideration by December 15, 2024.
What is Delaware Paid Leave?
Delaware Paid Leave is the name of Delaware’s Paid Family Medical Leave (“PFML”) insurance program that was created through the Healthy Delaware Families Act (the “Act”), which was signed in to law in May of 2022. The Act is a new state law based on the 30+ year-old federal Family Medical Leave Act (FMLA), which allows employees of larger companies take unpaid but job-protected leave when they experience certain significant events in their lives. Delaware’s new program will pay income-replacement benefits to those employees that face the same types of life events that FMLA covers.
Beginning on January 1, 2025, employers that are required to participate in this plan must begin assessing contribution rates against their employees’ covered wages. Employers that are covered by the mandate can require their employees to share in part of the cost of this program. Employers are legally responsible for 100% of the required contributions, but they may deduct up to half of the cost of the program from their employees’ paychecks.
Contributions into and benefits from Delaware Paid Leave are based upon the Federal Insurance Contribution Act (“FICA”) wages that you earned inside the State of Delaware. Employers can require their employees to pay up to 0.4% of covered wages (or 0.04%, if the employer is only mandated to provide Family Caregiver/QE Leave). In any year, “covered wages” are limited to the same maximum as is used for Social Security taxes.
Beginning January 1, 2026, Delaware workers can start taking paid job-protected leave. The contributions from this first year of the program will be used to build the Trust Fund that will pay out PFML claims and expenses.
What type(s) of leave is my employer required to provide?
The type(s) of PFML coverage your employer is required to provide depends upon the number of eligible Delaware employees your employer has:
- Employers with 1-9 covered employees are not required to provide PFML benefits
- Employers with 10-24 covered employees are required to provide Parental Leave.
- Employers with 25 or more covered employees are required to provide all PFML coverages.
Employers may choose to opt-in to the Delaware Paid Leave (DPL) insurance program to provide more benefits than required.
Click here to visit de.gov/paidleave for more information.
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