June 20, 2022
Delaware enacts law to implement a paid family and medical leave insurance program with contributions starting in 2025
On May 10, 2022, Delaware Governor John Carney signed into law Senate Substitute 2 for SB 1, which establishes a state paid family and medical leave (PFML) insurance program funded by employers and employees with contributions starting in 2025. In lieu of participating in the state's PFML program, employers may establish a qualified private PFML plan.
Delaware PFML contributions will apply to wages up to the federal Social Security wage limit. Employers may deduct from employee's wages up to 50% of the total required PFML contribution. The total PFML rate is 0.8% of covered wages, appropriated as follows:
For years after 2027, the state will set the contribution rate using actuarial principles. Additionally, an employee and employer may opt to file a waiver of the payroll contributions when an employee's work schedule or length of employment with the employer is not expected to meet the requirements for eligibility for PFML benefits.
A covered employer when they have employees working anywhere in the state.
PFML employee benefits
A covered individual is eligible for a maximum of 12 weeks of family and medical leave benefits and 12 weeks of parental leave in an application year. The maximum aggregate number of weeks during which medical leave and family caregiving leave benefits are payable is 6 weeks in any 24-month period. Except for parental leave benefits, a covered individual is eligible for benefits not more than once in a 24-month period.
The maximum weekly benefit in 2026 and 2027 must be $900.
Ernst & Young LLP insights
Delaware joins 11 other US jurisdictions that have adopted programs to provide PFML insurance benefits to employees — California, Connecticut, Colorado, District of Columbia, Massachusetts, New Hampshire, Maryland, New Jersey, Oregon, Rhode Island, and Washington.
For information concerning the taxation and reporting of paid family and medical leave insurance benefits, see our special report.
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