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What Employers Need to Know About Delaware’s Upcoming PFML Obligations

With benefits starting in 2026, Delaware is rolling out a new Paid Family and Medical Leave (PFML) program, bringing important changes for both employers and employees, and DE Paid Leave is the State Plan that provides just one way for employers to provide the required benefits under the law. As this new benefit takes shape, employers across the state will take on a range of responsibilities—some familiar, others new—aimed at supporting their workforce through life’s critical moments. Now is the time for employers to start preparing and understanding not just what’s ahead, but how to create a workplace that’s not only compliant, but also resilient and ready to thrive.

Many of these obligations—like updating internal policies, managing payroll deductions, and maintaining communication with employees—are in line with what employers have come to expect in other states with PFML programs. However, one of the biggest differences in Delaware’s approach lies in how claims are administered. This key distinction sets Delaware apart and will require particular attention as employers plan to ensure compliance and deliver a smooth experience for their teams.

Delaware PFML Insurance

Benefits are scheduled to begin January 1, 2026



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Making Claim Decisions as the Employer Through Delaware Paid Leave



Depending on how you, as the employer, decide to provide Delaware Paid Family and Medical Leave coverage, you may be in a position of having to make claim decisions. While participating in the State Plan in other states with statutory Paid Family and Medical Leave laws shifts the responsibility of making claim determinations to the State, the Delaware Paid Leave program is different.

If you provide PFML insurance coverage through the Delaware Paid Leave State Plan, you are responsible for making claim determinations (i.e. whether an employee’s claim is approved) – something you would typically not get involved in for other insurance coverages that you provide to your employees.

Claims administration is not a common area of expertise for small employers who have to juggle multiple other responsibilities to keep their business running. And while larger employers may have more knowledge in this area, they may not necessarily have resources to dedicate to these additional compliance responsibilities.

We will look at fully insured Private Plans through an insurance carrier (like ShelterPoint) which can help employers manage their DE PFML obligations a little later. First, let’s understand what will be expected of employers once this new required benefit goes into effect next year.

Delaware Paid Family and Medical Leave coverage through the Delaware Paid Leave State Plan: What is the employer’s role in the claim process?

Typically, in other states with similar state-administered PFML plans, employers’ claim obligations largely consist of just providing their employees with claim forms and completing the employer portion of the application. However, participating in the Delaware Paid Leave State Plan means that you as the employer will need to make initial PFML claim determinations. What exactly does that mean and entail?

  1. Employees will submit their PFML claim to you, the employer, via the online Delaware LaborFirst administrative system.
  2. Once you receive notice that all claim information has been uploaded to the LaborFirst system, you must then approve or deny the claim within 5 business days after receiving a complete PFML claim application. This is making the initial leave eligibility determination, i.e. is your employee eligible for DE Paid Leave benefits for this claim?
    1. If you determine that your employee is eligible, you will also need to determine the
      benefit amount and
      leave duration
    2. If you determine that your employee is not eligible, you will need to provide a reason for the denial to the Delaware Department of Labor (DDOL).
  4. You must communicate the outcome of the claim determination to your employee and the DDOL through the LaborFirst system within 3 business days. You will also need to ensure that any supporting documentation used to adjudicate the claim has been uploaded to the LaborFirst system during that time.

Under the DE Paid Leave State Plan, once a claim is approved, the DDOL will pay the approved benefit. The State must send the first benefit payment within 30 days after you let them know the claim is approved. After that, payments will be made every 2 weeks until your employee’s approved leave ends.

Expert Tip: Understanding this additional set of claim-related responsibilities is especially important if your business in not headquartered in Delaware but you have employees working in Delaware – as you may not be familiar with these claim-related obligations from similar programs in other states. The level of an employer’s Delaware PFML obligations depends on their Delaware employee count. Learn more about who needs to provide DE PFML and what employees need to be covered here.

What is the employer’s role in the claim process if the Delaware Paid Family and Medical Leave coverage is provided through a self-insured Private Plan that is self-administered?

If employers provide a self-insured Private Plan that is self-administered, employers are responsible for the entire claim process – ranging from claim determinations and decision making to claim payments.

What is the employer’s role in the claim process if the Delaware Paid Family and Medical Leave coverage is provided through a self-insured Private Plan that is administered by a TPA?

Suppose employers offer a self-insured Private Plan that is administered by a third-party administrator (TPA). In that case, the TPA will typically manage the claim process, while employers would retain ultimate financial responsibility for the claims.

What is the employer’s role in the claim process if the Delaware Paid Family & Medical Leave coverage is provided through a fully insured Private Plan carrier?

When choosing to provide Delaware PFML coverage through a fully insured Private Plan, it is the responsibility of the Private Plan carrier, such as ShelterPoint, to fully administer and pay Delaware PFML claims; essentially, you are transferring the PFML claims adjudication (decision-making) and processing responsibilities from your business to the carrier.



What Are the Top Employer Obligations for Delaware Paid Family and Medical Leave Regardless of How the Coverage Is Provided?

Not counting the obvious requirement of providing this new, required benefit come January 1, 2026, here are six of the most important employer obligations to be aware of:

  1. Inform employees of this new benefit available to them
    • Employers need to inform all covered Delaware employees about program benefits and costs.
      • Employers who participate in the Delaware Paid Leave State Plan and share the cost with employees have been required to provide and post the program notice at least 30 days before contributions started on January 1, 2025.
      • However, employers who fully cover employees’ share of DE PFML contributions and/or who have an approved Private Plan in place are not required to inform employees of the new benefit until 30 days before benefits begin on January 1, 2026.
    • For any new hires, employers need to provide them with their Notice of Employee Rights at the time of hire and generally for any employee when they request leave or employers learn that an employee’s leave may be a DE PFML qualifying event.
    • Employers must provide employees with notice of the coordination policy for paid time off (PTO) and Delaware PFML benefits.
  2. Manage employee contributions (if applicable)
    • Employers have the option to either cover all or part of the cost of the Delaware Paid Family & Medical Leave program for employees. Employers who do not choose to cover all employees’ contribution shares need to ensure that they manage any employee payroll deductions in full compliance with state and federal laws.
      • Expert Tip: Regardless of whether employers participate in the State Plan or have an approved Private Plan, employers cannot withhold more than the maximum amount allowed by law.
    • Learn more about contributions here.
  3. Submit quarterly wage and hour reports
    • Reports need to be submitted to the Delaware Division of Paid Leave through the LaborFirst system with enrollment, wages, and hours information for each covered employee. Reports are due within 30 days after the end of each calendar quarter.
  4. Continue health benefits for employees out on leave
    • Employees on PFML leave (for instance, when taking Delaware parental leave to bond with a new child) are entitled to continue receiving healthcare benefits they would have had if they had not taken leave. The employee is responsible for continuing to pay their normal share of any healthcare premium.
  5. Provide job protection to employees out on leave
    • Employees returning from leave are entitled to be restored to the position they held when starting their leave (or a position with equivalent terms and benefits, as required by law).

Whether planning to provide Paid Family and Medical Leave coverage through the Delaware Paid Leave State Plan or one of the approved DE PFML Private Plan alternatives, employers should be sure to prepare for these new obligations required of employers with Delaware employees.

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Why Choose ShelterPoint as Your Private Plan Carrier for DE Paid Family & Medical Leave Coverage?

As you can see, managing Delaware Paid Leave responsibilities can be complex — from making claim determinations to submitting detailed reports. All in all, it can feel overwhelming — but it doesn’t have to be.

With a fully insured Delaware Paid Family and Medical Leave Private Plan from ShelterPoint, you can leave the claims processing, payment, and certain administrative demands to us. Trust in our experience to help make your responsibilities simpler and more manageable. Take a deeper dive into the benefits of a fully insured Private Plan and how to apply for a Private Plan in Delaware.

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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. All images licensed through Adobe and iStockphoto.

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).

 

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