Delaware Paid Family and Medical Leave: 0.8% Premium, $900 Weekly Benefit Cap and the Under-10-Employee Exemption
Delaware Paid Family and Medical Leave: 0.8% Premium, $900 Weekly Benefit Cap and the Under-10-Employee Exemption
Delaware's Healthy Delaware Families Act represents a significant shift in how the state supports workers navigating major life events and medical needs. Since contributions began on January 1, 2025, and benefits became available on January 1, 2026, every Delaware business and employee needs to understand how this mandatory program works, who pays, and what protection it provides.
What Is Delaware Paid Family and Medical Leave?
Delaware's paid family and medical leave program, codified in 19 Del. C. ch. 37 and administered by the Delaware Department of Labor, guarantees eligible workers access to paid time off for three categories of need: parental leave after the birth or adoption of a child, family caregiving (caring for a family member with a serious health condition), and medical leave (for the employee's own serious health condition). Unlike some state programs, Delaware's is mandatory for most employers, though significant exemptions and reduced obligations apply based on company size.
The 0.8% Contribution Rate and Cost Breakdown
For 2025 and 2026, the total contribution rate is 0.8% of employee wages. That rate breaks down as follows:
- 0.4% for medical leave coverage
- 0.08% for family caregiving leave coverage
- 0.32% for parental leave coverage
Beginning in 2027, the Delaware Department of Labor will adjust these rates. Check with the Department of Labor to confirm the rates that apply to your business and employees for 2027 and beyond.
One critical point: the employer may deduct no more than 50% of the contribution from the employee's wages. This means the employer must pay at least half of the total 0.8% cost, and the employee pays the remainder, up to 0.4% of wages. The split between employer and employee is a matter of choice for the employer, as long as the employee does not bear more than 50% of the cost.
Who Must Participate: The Under-10-Employee Exemption
Not all Delaware employers are required to participate in the paid family and medical leave program. The most significant exemption applies to small businesses.
Employers with fewer than 10 employees in the previous 12-month period are fully exempt. This exemption is not automatic; the employer's head count in the 12 months before the current period determines coverage. If your business employed fewer than 10 employees in the previous 12 months, you do not have to contribute to or participate in the program.
However, small employers have the option to opt in voluntarily. If you want your employees to have access to Delaware's paid leave benefits, or if you believe participation is good for retention and morale, you can elect to participate even if you fall below the 10-employee threshold. Contact the Department of Labor for information on how to make this election.
Employer Obligations by Company Size
Delaware's approach to paid family and medical leave creates a tiered structure based on employer size, reflecting different regulatory burdens for large, mid-size, and small businesses.
Employers with Fewer Than 10 Employees
Exempt from the program unless they voluntarily opt in. No contributions or administrative obligations unless the employer chooses to participate.
Employers with 10 to 24 Employees
Subject to the program, but with reduced scope: these employers must provide parental leave only. Medical leave and family caregiving leave are not required for this size category. The 0.32% parental leave contribution applies; the 0.4% medical and 0.08% family caregiving portions do not.
Employers with 25 or More Employees
Subject to the full program. These employers must fund and make available parental leave, family caregiving leave, and medical leave. The entire 0.8% contribution rate applies.
If your workforce fluctuates near these thresholds, track your average employee count over the prior 12 months to determine your obligations accurately.
Employee Benefits: Duration and Payment
Once an employee qualifies for Delaware paid family and medical leave, the benefit is substantial, though not full wage replacement.
Benefit Payment
Eligible employees receive 80% of their average weekly wage. However, the benefit is subject to a weekly minimum and maximum:
- Minimum: $100 per week
- Maximum: $900 per week (for 2026 and 2027)
Starting in 2028, the maximum weekly benefit will be indexed to the Consumer Price Index (CPI), so it will increase annually with inflation. This ensures that the benefit keeps pace with wage growth over time.
Maximum Duration
The length of leave available depends on the reason:
- Parental leave: up to 12 weeks following the birth or adoption of a child
- Medical and family caregiving leave combined: up to 6 weeks in any 24-month period for the employee's own serious health condition or to care for a family member with a serious health condition
These periods are not cumulative across categories. For example, if an employee uses 4 weeks of family caregiving leave in a 24-month period, they have 2 weeks of combined medical and family caregiving leave remaining during that same period. Parental leave is separate and available in full if the employee qualifies.
How to Apply and File
Employees who believe they qualify for paid family and medical leave must apply through the Delaware Department of Labor. The Department maintains the wage base records, processes claims, and distributes benefits. Employers file contribution reports and employment records through the Department of Labor's employer filing portal.
For specific information on wage base calculations, employer filing deadlines, and the online portal where contributions are submitted and claims are processed, contact the Delaware Department of Labor directly. The procedures and filing schedule are managed by the Department and may be updated annually.
Approved Private Plans: An Alternative for Some Employers
An employer may apply to the Department of Labor for approval to meet its obligations through a private plan instead of participating in the state program. A private plan must meet or exceed the state's standards for benefit amount, duration, and coverage. If the Department of Labor approves a private plan, the employer's employees receive benefits under that plan and the employer avoids state contributions.
Private plans are complex and must meet strict requirements. If you are considering this route, consult with your human resources advisor and the Department of Labor to understand whether approval is feasible and what the approval process entails.
Key Dates and Compliance Timeline
- January 1, 2025: Contributions to the Delaware paid family and medical leave program began
- January 1, 2026: Benefits became available to eligible employees
- 2027 onward: Contribution rates will be adjusted by the Department of Labor; CPI indexing of the maximum weekly benefit begins in 2028
If you have not yet enrolled your business or ensured that contributions are being withheld and remitted, do so immediately. Compliance is ongoing and failure to contribute can result in penalties.
Deciding Between Employee and Employer Cost Sharing
Because employers can deduct no more than 50% of the 0.8% cost from employees, you have flexibility in how you structure the cost split:
- Pay the full 0.8% and deduct nothing from employee wages
- Deduct up to 0.4% from employees and pay 0.4% yourself
- Any split in between, as long as employees do not pay more than 50%
This decision is yours to make. Many employers choose to share the cost with employees, while others absorb the full cost as a benefit to remain competitive in recruitment. Consider your industry, local labor market, and employee relations strategy when deciding.
Questions to Ask the Delaware Department of Labor
As you implement Delaware's paid family and medical leave program, you may need clarification on details specific to your business. The Department of Labor is the authoritative source. Questions you should prepare include:
- How is average weekly wage calculated for benefit purposes?
- What is the deadline for submitting contribution payments each month or quarter?
- What records must we maintain regarding employee hours and wages?
- How do part-time and temporary employees factor into the 10-employee threshold?
- What happens if an employee is on paid leave when they become eligible for family leave?
- Are there industry-specific considerations for my business type?
Visit the Delaware Department of Labor website or contact the agency directly to obtain the forms, filing instructions, and wage base information you need.
Bottom Line for Delaware Employers and Employees
Delaware's paid family and medical leave program is now live, with a 0.8% payroll premium shared between employer and employee. Small businesses with fewer than 10 employees are exempt but may opt in. Mid-size employers (10 to 24 employees) must provide parental leave only. Large employers (25 or more) must fund the full program across all three categories. Eligible employees receive up to 80% of their average weekly wage, capped at $900 per week in 2026 and 2027, for up to 12 weeks of parental leave or 6 weeks of medical and family caregiving leave combined.
Whether you are implementing this program for the first time or refining your approach, accuracy and timeliness are essential. Keep your employee count tracked, contributions submitted on schedule, and your team informed about how to access benefits when they qualify.
Disclaimer
This content is informational only and does not constitute legal, tax, or professional advice. Delaware's paid family and medical leave program and its rules are set by state law and administered by the Delaware Department of Labor. Specific details about wage base calculations, filing procedures, and benefit eligibility may change. Always consult the most current guidance from the Delaware Department of Labor and consider seeking advice from a qualified employment law attorney or human resources professional before making decisions about your business's participation in or administration of this program.