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As we move along the road toward DE Paid Family & Medical Leave, with benefits going into effect January 1, 2026, our team has been helping brokers and employers navigate their obligations and options. Many of them are at a crossroads, preparing to choose to either stick with the Delaware Paid Leave State Plan or follow the path toward a Private Plan when the application window opens this fall.
While the Delaware Department of Labor (DDOL) continues to iron out the details, employers still have questions—some more specific, some more fundamental, depending on how far along the journey to DE PFML they are. To help employers get up to speed, stay informed, and remain compliant as Delaware Paid Family and Medical Leave goes into effect, we’ve compiled and answered the top 8 questions we’ve received.
#1 Is Delaware Paid Family & Medical Leave mandatory?
Yes, Delaware Paid Family and Medical Leave is generally a required benefit that Delaware employers with at least 10 employees are required to provide. The exact level of benefits required depends on the number of its employees who work in the state of Delaware. Learn more here.
#2 Is Delaware Paid Leave just another name for FMLA or Paid FMLA?
We hear this one a lot. No, Delaware Paid Leave refers to the Paid Family and Medical Leave (PFML) Insurance program administered by the state. A Private Plan can also provide PFML coverage for employees.
“Paid FMLA,” however, is not an existing program. This term blends the concept of paid leave benefits mandated by a state and the federally protected, unpaid leave that can be taken for similar leave reasons. In fact, Delaware PFML benefits, whether on the Delaware Paid Leave State Plan or under Private PFML Plan, can run concurrently with unpaid protections under FMLA.
Under the Family Medical Leave Act (FMLA), employees can receive up to 12 weeks of unpaid, job-protected leave with continued medical benefits. The Delaware PFML program provides partially paid income-replacement benefits of 80% of the average weekly wage, up to $900 weekly. Learn more about Delaware PFML benefits here.
However, while the Delaware PFML program intentionally tries to closely follow the FMLA’s structure, it is not always an exact match and can create some potential compliance issues that employers need to be mindful of. First, the duration of certain leave types differs between FMLA and Delaware PFML. For instance, whereas the FMLA provides 12 weeks of unpaid leave benefits for medical leave, family caregiving leave, and qualified exigency leave per application year, Delaware PFML’s paid benefits only cover 6 weeks of benefits for each leave type per two consecutive application year. Second, in certain circumstances, Delaware’s program either allows or requires employers to use a different method for calculating an employee’s application year for PFML benefits as compared with the employer’s chosen method for its FMLA policy. In such situations, there might not be complete concurrency between leaves taken under Delaware PFML and the FMLA, so employers should carefully review these considerations with a qualified employment law professional when designing their leave benefits.
While the FMLA’s requirements apply to employers with 50 or more employees, the Delaware PFML program extends mandatory coverage to those with 10 or more in-state employees (and to even smaller businesses on a voluntary basis), making it more widely accessible. Employers should consult HR counsel to better understand how these two distinct programs interact.
#3 How does Delaware Paid Family and Medical Leave determine employee eligibility?
To be eligible for Delaware PFML benefits, an employee must work at least 60% of the time in Delaware for a covered employer, have at least 12 months / 52 weeks of qualifying service for that employer, and have worked at least 1,250 hours in the past year (roughly 25 hours/week).
Workers who are not expected to meet the eligibility criteria, (e.g., part-time workers who work fewer than 25 hours per week or who only work seasonally) can submit a signed waiver to opt out of the program, forfeiting contributions and benefits. Changes in that employee’s work schedule that make them eligible require revoking the waiver and rejoining the program, with the employer owing back contributions for the employee. However, employees who are reasonably expected to meet the eligibility thresholds for Delaware PFML may not waive coverage.
#4 How does eligibility work for employees who work outside of Delaware?
Employees who work outside Delaware more than 40% of the time are generally ineligible for benefits. However, there are two notable exceptions:
- Employees assigned to Delaware teams but working remotely outside Delaware over 40% of the time, and who otherwise meet the eligibility criteria, may be able to participate in the Delaware PFML program under certain circumstances via a reclassification process, where the employer and employee both agree to cover the employee. An employee residing in a state or municipality with an existing PFML program is not eligible for reclassification.
- Delaware employees on temporary out-of-state assignments are generally still eligible for Delaware Paid Family and Medical Leave.
#5 How do I calculate contributions?
Maximum contribution amounts can vary depending on the type of coverage an employer is required to provide. For 2025 and 2026, the Delaware Paid Leave State Plan rates and coverage requirements are determined by the number of employees:
- 10 - 24 Employees: Contributions are 0.32% of employees’ FICA wages earned in Delaware to cover only Parental Leave
- 25 or More Employees: Contributions total 0.80% of wages. This includes 0.32% for Parental Leave coverage, 0.40% for Medical Leave, and 0.08% for Caregiver or Military Exigency.
The employer and employee may share the program cost, with the employee covering up to 50% through payroll withholdings.
⇒ If your PFML coverage is with a Private Plan carrier like ShelterPoint, rates are fully underwritten. Brokers — get a quick, custom Delaware quote for your clients today!
#6 What happens if the number of employees working for a company changes?
Employers are expected to calculate their Delaware employee count quarterly, which is reported to the state the following quarter. Once an employer’s employee count rises above either the 10- or 25- employee threshold on a quarterly wage report, the employer must begin providing the greater level of coverage at the beginning of the next quarter. An employer’s coverage obligations remain in place for at least the next 4 quarters, even if their employee count drops below the threshold. Only after being below the threshold for 4 consecutive quarters can coverage be dropped.
#7 I heard that employers will be expected to do claims adjudication – what exactly is it and what does that mean for my business?
Claim adjudication responsibilities fall on the employer when coverage is provided through the State Plan. This means the employer makes the initial claims decisions and verifies leave eligibility. Employers who meet the requirements to choose a self-insured plan may also choose to self-administer claims, or they may use a third-party administrator. Generally, the process involves both the employer and employee following some basic steps:
- Employees submit their PFML claim via the online Delaware LaborFirst administrative system.
- Once all claim information has been uploaded, the employer will receive notice and must then approve or deny the claim within 5 business days after receiving the complete PFML claim application.
- If the employer approves the claim, the Delaware Department of Labor will determine the benefit amount and leave duration.
- If the employer determines that the employee is not eligible, the employer will need to provide a reason for the denial to the Delaware Department of Labor (DDOL).
- The outcome of the claim determination must be communicated to the employee and the DDOL through the LaborFirst system. The DDOL will then pay the approved benefit within 30 days after the claim is approved. After that, payments will be made every 2 weeks until the employee’s approved leave ends.
Understanding this additional set of claim-related responsibilities is especially important if your business is headquartered outside Delaware and has employees working in Delaware. Even if an employer is familiar with similar programs in other states, this set of claim-related obligations is specific to Delaware. Learn more about Employer Responsibilities here and continue to Question #8 to learn about Private Plans as an alternative option.
#8 How might a Private Plan benefit employers and their employees?
A Private Plan, such as ShelterPoint’s, is a state-approved, fully insured alternative, and backed by our expertise and experience in Paid Family & Medical Leave and related coverages:
- End-to-end admin support including claims adjudication
- Dedicated team ensures questions get quick answers and compliance is seamless
That means more time to focus on running your business, while ensuring your employees are covered. To learn more, you can check out our Delaware PFML Employer Webinar recording, browse our DE resource center or initiate a quote with your broker here today.
1The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier (principal office in Garden City, NY), and its wholly owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.
This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of Delaware’s applicable laws and regulations as of the publication date and may change as laws or regulations evolve, or as the Delaware Department of Labor issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.
Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.
The provisions of the Delaware Family and Medical Leave Insurance Program, 19 Del. C. § 3701 et seq., and its implementing regulations, 19 Del. Admin. Code § 1401 et. seq. govern this Private Plan and its interpretation and administration. Available in DE only.
Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: DE (form# SPL PFMLP 0624 DE).