The Employer’s Guide to Paid Family Leave in Delaware

Delaware is one of the latest states to offer paid family leave to its workers. The state program, which went into effect on January 1, 2026, gives eligible employees paid time off during serious life events, from personal illnesses to family caretaking.

If you employ people in Delaware, whether or not your business is physically located there, you might be subject to the state’s new leave regulations. Below, you’ll find information on how Delaware’s leave works and what the program costs employers, as well as the steps you need to take to remain compliant. 

What is Delaware’s paid family leave program? 

The Healthy Delaware Families Act, signed into law in 2022, created the Paid Family and Medical Leave Insurance Program, also called Delaware Paid Leave or Paid Family and Medical Leave (PFML). 

Under the program, Delaware employees can take four types of paid leave: 

1. Parental leave: Employees can take up to 12 weeks in a year to care for a new child. 

2. Caregiving leave: Employees can take up to six weeks every 24 months to care for a family member with a serious health condition. 

3. Medical leave: Employees can take up to six weeks every 24 months to manage a serious personal health condition or injury. 

4. Military exigency: Employees can take up to six weeks every 24 months to help a loved one on an overseas military deployment. 

Employees are limited to 12 total weeks of leave per year, regardless of the type, and receive 80% of their average weekly wage in benefits when on leave, up to $900 per week. 

Who’s eligible for Delaware Paid Leave? 

To be eligible for Delaware Paid Leave, employees have to meet all of the following requirements: 

• Work primarily in Delaware (at least 60% of their time)

• Have worked for their employer for at least 12 months

• Have at least 1,250 hours of service (about 25 hours per week) in the last 12 months

Sole proprietors, like S-corporation business owners and independent contractors, can opt into the paid leave program, as long as they meet the requirements above and pay their own contributions.

How is Delaware Paid Leave funded?

Delaware Paid Leave is funded by employer and employee contributions. As an employer, you’re responsible for submitting the full contribution amount, and you can either pay it yourself or require your employees to split the cost with you. 

For 2026, the contribution rate is 0.8% of an employee’s average weekly wage, which covers all four types of leave: 

• Parental leave: 0.32% of an employee’s average weekly wage 

• Medical leave: 0.4% of an employee’s average weekly wage

• Family caregiving leave: 0.08% of an employee’s average weekly wage

You can use the Benefits Contribution Calculator at the bottom of this page to determine how much you’ll pay in contributions. 

If you have employees who won’t meet the program’s eligibility requirements, either because they work part-time or they’re seasonal employees, you can fill out a waiver that exempts you from paying leave contributions on their behalf. 

Which employers are required to participate?

Most employers in Delaware with 10 or more employees have to participate in the state’s paid leave program. There are just a few types of employers who are exempt: 

• Employers with nine or fewer employees

• Federal government employers

• Seasonal operations that are closed to the public for a month or more

But not all employers with 10 or more employees participate in the program the same way.  Delaware requires employers with 10 to 24 employees to provide paid parental leave, but not caregiving, medical, or qualified military exigency leave. Employers with 25 or more employees, however, have to provide paid leave for all four leave situations. 

Here’s a breakdown for easy reference: 

Can I enroll in the program with fewer than 10 employees? 

If you have nine or fewer employees, you’re not required to participate in Delaware Paid Leave—but you can voluntarily join. As of 2026, you’re allowed to enroll any time throughout the year, as long as you register 30 days before your plan starts. Plan start dates for voluntary enrollment are January 1, April 1, July 1, or October 1.

Here are the steps to get set up: 

1. Register through Delaware LaborFirst.

2. Check the Voluntary Enrollment box.

3. Choose your coverage—you can enroll in some or all of the paid leave programs.  

Once you decide to enroll in the Delaware Paid Leave program, you’re obligated to give your employees paid leave for at least three years. After those three years are up, you can opt out of the program, but you have to give 12 months of notice, both to the Delaware Division of Paid Leave and to your employees.

How does Delaware Paid Leave work with FMLA?

The federal Family and Medical Leave Act (FMLA), which started in 1993, gives eligible employees up to 12 weeks of unpaid, job-protected leave for bonding, caregiving, medical recovery, and military exigency. FMLA requires all employers in the United States with at least 50 employees working within a 75-mile radius to participate. 

When your employees qualify for both state and federal leave, the programs run concurrently, and your employees receive whichever protections are strongest. Let’s compare the details. 

Delaware Paid Leave vs FMLA Leave

What should my business do to comply with Delaware Paid Leave?

If you participate in Delaware’s leave program, whether by obligation or choice, there are crucial steps you need to follow. 

1. Register with Delaware LaborFirst and pay leave contributions   

If you haven’t already, you need to register with the state using the LaborFirst Employer dashboard. Depending on how many employees you have (between 10-24 or 25+), you’re responsible for submitting either 0.32% or 0.8% (in 2026) of your employee’s average weekly wage to the Division of Paid Leave every quarter.

Remember: you can pay the full contribution amount yourself or require your employees to pay 50% of the cost via payroll deductions. The due date to send in your contribution is 30 days after the end of each calendar quarter. 

Along with the payment, you need to report certain employee data each quarter, including employee demographics, plan enrollment details, hours of service, and in-state versus out-of-state FICA wages. 

2. Tell your employees about Delaware Paid Leave

You’re responsible for educating your employees on Delaware’s leave program. You can do that via the official Notice of Employee Rights, which details the state’s paid leave offerings, eligibility requirements, and employee rights. 

You’re legally required to distribute the notice at the following times: 

• When a new employee is hired

• When an employee requests leave

• When you believe an employee might qualify for PFML leave because of a life event (say, for example, an employee tells you that they’re expecting a baby)

You also have to notify employees if your headcount changes to the point where it affects your leave coverage. Think: going from no leave coverage to having paid parental leave (a jump from nine employees to 10), or going from complete leave coverage to only paid parental leave (a drop from 25 to 24 employees). 

• If your employee headcount increases and you gain leave coverage as a result, you have to notify employees within 30 days. 

• If your employee headcount decreases and stays below the qualifying threshold for four consecutive quarters, you have to notify employees at least 30 days before they’re set to lose leave coverage. Then, if your headcount remains below the threshold through the rest of the fifth consecutive quarter, your employees will lose their coverage at the beginning of the next quarter. 

3. Review employee leave claims

When your employees submit their PFML claim to you via the Delaware LaborFirst portal, you’re in charge of reviewing the claim for accuracy and approving or denying it. You have to issue an approval or denial within five business days of receiving the claim. 

Here’s what you do: 

1. Review the claim to confirm that your employee meets the eligibility requirements for leave, and to see whether or not they qualify for FMLA leave as well.

2. If they’re eligible, you’ll approve the claim, then determine their weekly benefit amount and leave duration. If they’re not eligible for leave, you need to deny the claim and explain why to the Delaware Department of Labor (DDOL). 

3. Tell your employees and the DDOL the outcome of the claim within three business days, and upload any supporting documentation to the portal. 

For detailed instructions and explanations on claim review, check out the Delaware Department of Human Resources’ HR checklist for leave. 

4. Follow all other state and federal requirements 

If your employees qualify for state or federal leave, you’re required to continue paying their health insurance premiums during leave and restore them to their jobs when they’re back from leave.

You also need to post a workplace notice for FMLA leave, which you can download here, and prepare to give employees a Rights and Responsibilities Notice and Designation Notice if they end up requesting FMLA leave. 

Keep in mind that these rules aren’t voluntary; if you don’t give employees the leave they’re entitled to, or if you discriminate against them for taking leave of any kind, you could face civil penalties from the state and federal government, not to mention potential lawsuits from employees. 

5. Keep thorough records of all leave-related paperwork

The Internal Revenue Service (IRS) recommends holding onto your personnel and payroll records for at least three years. Make sure you keep: 

• Payroll records

• Paystubs

• Copies of state and federal leave notices

• Official employee requests for leave

• Claims forms

• Documentation of leave start and end dates

What will Delaware’s paid leave cost me? 

Paid leave will cost you a fraction of your employees’ regular wages; the exact amount depends on how many employees you have and whether or not you contribute 100% yourself or require employees to share the cost. 

The 2026 contribution rate is 0.8% of your employees’ average weekly wage, so you’ll end up paying just 0.4% if your employees contribute half. 

Let’s do an example with help from the Benefits Contribution Calculator. Let’s say you employ 30 employees, and pay several of them $80,000 a year. You also require your employees to pay 50% of leave contributions themselves. 

With the current contribution rate of 0.8%, you’d send a total of $12.30 per week for each employee earning $80,000, but pay just $6.15 yourself, since your employees pay the other $6.15. That amount covers all four types of leave:

• 0.32% for parental leave → $4.92 (employer portion: $2.46)

• 0.40% for medical leave → $6.15 (employer portion: $3.08)

• 0.08% for family caregiver/qualified exigency leave → $1.23 (employer portion: $0.62)

However, let’s say you only employ 15 people, so you’re required to pay for parental leave, but not the other types. You still pay most employees $80,000 and require them to share the cost of contributions. 

In that case, you’d only contribute 0.32% of your employee’s average weekly wage (covering parental leave only), bringing your weekly contribution total to $2.46 (half of $4.92).

Of course, if you want to be extra generous, you can top up your employees’ weekly benefit payments to 100% or give them additional paid time beyond the state’s allowance. 

And if you’re not required to participate in the program but you still want to provide some basic coverage, you can. Giving your employees paid leave shows them you care about their personal and professional well-being. And that care tends to lead to stronger employee loyalty and better long-term retention rates. 

If you want to give your employees 80% of their weekly wages, it’s easiest to enroll in Delaware’s program. But if you can only afford to offer, say, 50% coverage, private insurance is a good option (here’s an FAQ from the state)—and you don’t need approval from the Delaware Division of Paid Leave to do so. 

The hidden cost of employee leave management 

Delaware forces employers and HR teams to be a bit more hands-on with leave approval and processing than many other states with paid programs, so it’s important to consider the cost of your time. 

You have to track employee leaves, manage state benefits paperwork, review claims, and coordinate with employees. Depending on the size of your workforce and employee population, managing employee leaves could take a few hours a week—or quickly turn into a full-time job. 

If you don’t have the capacity to manage leaves yourself, you may need to hire a third-party administrator (TPA) or employee leave management vendor.

Do I need to change my existing employee leave policy? 

If you haven’t updated your company’s employee leave policy to account for Delaware Paid Leave, now’s the time. Your written leave policy should be clear, inclusive, and aligned with state and federal laws. 

Make sure you: 

• Explain whether or not your employees are eligible for paid leave from the state, and which type(s)

• Explain whether or not you’re a covered employer under FMLA (meaning you have 50 employees working within a 75-mile radius)

• Include information about when and how employees should request leave

• Explain the rights employees are entitled to during leave (job protection, partial wage replacement, continued health insurance) 

Bookmark these Delaware business guides 

Every state has its own particular rules when it comes to fundamental business processes, like hiring and paying taxes. If you need a refresher on your state’s laws, use our easy guides to brush up on hiring, small business taxes, starting a new business, state tax incentives, and establishing an LLC.