Delaware Leave Laws Explained: A Guide for Businesses

Employee leave laws in Delaware provide clear rules about when and how workers can take time off. These regulations cover both paid and unpaid leave, giving employees the ability to address personal, family, or medical issues without worrying about job security. For businesses, keeping up with these laws is key to staying compliant and avoiding legal trouble.

Delaware's leave policies have undergone significant changes, especially with the introduction of paid family and medical leave under the Healthy Delaware Families Act. This law now requires businesses with 10 or more employees to contribute to a statewide insurance program that offers financial support for eligible leave. These updates are designed to support employees' well-being while balancing the operational needs of businesses, fostering a healthier work culture across the state.

Leave laws in Delaware address a variety of circumstances, from parental leave to absences for health reasons. Employers need to stay informed about these requirements to properly manage leave policies and avoid potential penalties.

Below is a breakdown of what Delaware businesses should know about employee leave laws.

What are Employee Leave Laws in Delaware?

• Delaware's employee leave laws define the rights and responsibilities of both employers and workers regarding time off, covering areas like parental leave, personal health-related absences, and caregiving duties for family members.

• The Healthy Delaware Families Act introduces paid family and medical leave starting in 2026. Under this law, employees are entitled to up to 12 weeks of paid parental leave each year, and up to 6 weeks every 24 months for other qualifying reasons, such as serious health conditions or urgent needs related to a family member's military service.

• Employers with at least 10 employees are required to provide paid parental leave, while businesses with 25 or more employees must offer full leave benefits, which include caregiving and personal medical leave. However, seasonal employers and those with fewer than 10 employees are not subject to these requirements.

How to Understand Delaware Paid Leave

Delaware Paid Leave goes into full effect on January 1, 2026, marking a significant shift in employee leave laws in Delaware. This program is designed to provide financial support to workers during specific life events while ensuring job protection.

One of the key features of Delaware Paid Leave is the allowance of up to 12 weeks of paid leave annually for qualifying reasons. Employees can use this leave to bond with a new child, recover from a serious health condition, care for a family member with a serious health issue, or assist during a family member's military deployment. However, the total combined leave cannot exceed 12 weeks within a calendar year.

Coverage is determined by the size of the business. Employers with at least 10 employees must provide paid parental leave, while those with 25 or more employees are also required to offer caregiving and personal medical leave. Businesses with fewer than 10 employees, as well as certain seasonal operations, are exempt from the program.

For employees to qualify, they must have worked for their employer for at least one year and logged a minimum of 1,250 hours during the previous 12 months. Eligible employees will receive up to 80% of their wages, capped at $900 per week, during approved leave periods. Employers can require workers to contribute up to half the cost of the program, funded through payroll deductions starting in 2025.

Understanding these specifics now will help businesses prepare for compliance and employees plan for future leave needs.

1. Delaware Paid Leave Eligibility

Delaware Paid Leave eligibility is determined by specific employment criteria. Employees must meet both duration and work-hour requirements to qualify for paid leave benefits.

• Employment Duration: Workers must have been employed by the same employer for at least one year. This ensures employees have an established relationship with their employer before accessing paid leave.

• Work Hours Requirement: Employees must have worked a minimum of 1,250 hours during the 12 months prior to taking leave. This equates to roughly 24 hours per week on average, demonstrating consistent, regular employment.

Eligibility only applies to employees who primarily report for work in Delaware. For remote or hybrid workers, the location they are officially associated with for work purposes will determine whether they qualify under Delaware's program. This distinction ensures that the program focuses on supporting the state's workforce.

Employers should carefully track employee hours and work locations to confirm eligibility. Proper recordkeeping is essential to comply with the program and avoid disputes over an employee's status.

2. Delaware Paid Leave Benefits

Delaware Paid Leave offers significant financial support for employees during qualifying leave periods. Workers can receive up to 80% of their average weekly wages, with a maximum benefit of $900 per week. This ensures employees have a reliable income while addressing personal or family needs.

The program covers four specific types of leave:

• Parental Leave: Employees can take up to 12 weeks in a year to bond with a new child, whether by birth, adoption, or foster placement.

• Medical Leave: Workers with a serious health condition that prevents them from performing job duties are eligible for up to 6 weeks of leave within a 24-month period.

• Family Caregiving Leave: Employees can take up to 6 weeks every 24 months to care for a family member with a serious health condition.

• Military Exigency Leave: Workers may use up to 6 weeks every 24 months to address urgent needs arising from a family member's overseas military deployment.

The program limits employees to a total combined maximum of 12 weeks of leave per year across all eligible categories. For example, if an employee uses 6 weeks for medical leave, they can still utilize an additional 6 weeks for parental leave within the same calendar year.

This benefit is funded through payroll contributions shared by employers and employees. Employers can require employees to contribute up to 50% of the program's cost. By providing partial wage replacement and job protection, Delaware Paid Leave aims to balance employee support with workplace continuity.

3. Delaware Employer Obligations

Employers in Delaware must comply with specific requirements based on the size of their workforce. Businesses with 10 to 24 employees are required to provide paid parental leave under the state's leave program. Employers with 25 or more employees must go a step further by offering full coverage, which includes medical leave and family caregiving leave in addition to parental leave.

To fund the Delaware Paid Leave program, employers are responsible for contributing a portion of their payroll. Contributions are calculated based on employee wages and must be submitted according to the program's deadlines. Employers can also require employees to share the cost by contributing up to 50% of the total premium.

Key responsibilities for compliance include:
- Tracking Workforce Size: Employers must accurately monitor the number of employees to determine whether they fall into the 10-24 or 25+ category. Seasonal fluctuations or part-time workers may impact eligibility and obligations.
- Payroll Deductions: Starting January 1, 2025, employers must begin withholding employee contributions if applicable. Payroll systems should be updated to ensure deductions are accurate and submitted without delay.
- Account Setup: Employers must create an account with Delaware LaborFirst to manage contributions and program participation. This step is critical for filing and compliance purposes.
- Providing Leave: Once the program is active on January 1, 2026, businesses must ensure eligible employees receive the correct amount of leave and wage replacement during approved absences.

Employers must also maintain clear records of leave requests, payroll contributions, and workforce details to demonstrate compliance if audited. Failure to adhere to these requirements could lead to penalties, including fines or legal action. Staying proactive by preparing payroll systems and tracking workforce changes will help employers meet these obligations seamlessly.

4. Compliance with Delaware Leave Laws

Employers in Delaware must adhere to specific requirements to remain compliant with employee leave laws in Delaware. These obligations are designed to protect employees' rights while ensuring businesses meet state-mandated standards.

One critical requirement is maintaining employee health benefits throughout the duration of any approved leave. Employers must continue providing the same health insurance coverage as if the employee were actively working. This includes paying the employer's share of premiums to avoid lapses in coverage. Employees may be required to pay their portion of premiums during leave, but they must receive clear instructions regarding payment deadlines and methods.

Reinstatement rights are another cornerstone of compliance. Employees returning from leave are entitled to be restored to their original position or an equivalent one. An equivalent position must offer the same salary, benefits, and working conditions as the previous role. Employers cannot reduce pay, alter job responsibilities, or shift employees to a less favorable role upon their return.

To ensure compliance, employers should:
- Document Leave Policies: Clearly outline leave procedures and benefits in employee handbooks, including steps for maintaining health coverage and requesting reinstatement.
- Keep Accurate Records: Maintain detailed records of leave requests, health benefit payments, and reinstatement actions to demonstrate compliance during audits.
- Train HR Staff: Ensure HR professionals and managers understand compliance requirements to avoid mistakes that could lead to penalties.

Failure to maintain health benefits or honor reinstatement rights can result in legal consequences. Employers may face claims for damages, including lost wages, attorney fees, and potential fines for non-compliance. Staying proactive and following these guidelines will help businesses meet their obligations under employee leave laws in Delaware.

5. Contrast with Federal Leave Laws

Employee leave laws in Delaware offer significant enhancements compared to federal regulations. While the FMLA provides job protection for unpaid leave, Delaware’s law introduces paid leave benefits, ensuring financial support for employees during qualifying absences. This fundamental difference sets Delaware apart as one of the few states prioritizing paid family and medical leave.

Under the FMLA, eligible employees can take up to 12 weeks of unpaid, job-protected leave for specific reasons, such as caring for a newborn or recovering from a serious health condition. Delaware's law mirrors this time frame but goes further by offering wage replacement during leave. Eligible employees may receive up to 80% of their average weekly wages, capped at $900 per week, for qualifying leave periods. This financial assistance makes leave more accessible, especially for employees who cannot afford to take unpaid time off.

Both the FMLA and Delaware's leave law guarantee job protection, meaning employees must be reinstated to the same or an equivalent position upon returning from leave. However, Delaware's law extends additional protections by requiring that employees' health benefits be maintained during their leave period. This ensures continuity of coverage for employees and their families.

Another key distinction lies in employer coverage. The FMLA applies to employers with 50 or more employees within a 75-mile radius. In contrast, Delaware's leave law covers businesses with as few as 10 employees for parental leave and 25 employees for full leave benefits. This broader coverage ensures that more workers in Delaware have access to leave benefits, regardless of the size of their employer.

While both laws require employees to meet eligibility criteria, Delaware's standards are tailored to its program. For example, Delaware requires employees to have worked at least 1,250 hours and for one year with their employer, aligning with federal FMLA standards but adding the component of wage replacement. This alignment ensures consistency while introducing additional benefits for Delaware workers.

6. Key Dates and Implementation

Delaware's paid leave program follows a structured timeline that employers must adhere to in order to ensure compliance. The journey began on May 11, 2022, when the law was officially signed, and will reach full implementation on January 1, 2026, when employees can begin submitting leave applications.

The timeline includes critical milestones for employer contributions and administrative setup. Understanding each phase is essential for businesses to prepare systems, budgets, and policies effectively.

Key Dates to Remember:

• May 11, 2022: The law was signed, establishing Delaware's paid leave program.

• July 11, 2023: Initial regulations for the program went into effect.

• March 11, 2024: The second phase of program regulations becomes effective, providing additional guidance for employers.

• September 2024 - December 1, 2024: Employers must set up accounts using Delaware LaborFirst to manage contributions and compliance.

• January 1, 2025: Payroll deductions for employee contributions begin for businesses participating in the state's plan.

• April 30, 2025: First contribution payments are due, ensuring the program is adequately funded ahead of its operational launch.

• January 1, 2026: Employees become eligible to submit claims for paid leave benefits.

Employer Responsibilities by Phase:

1. 2024 – Account Setup: Employers must establish their accounts with Delaware LaborFirst between September and early December 2024. This platform will be used for filing contributions and managing program participation. Failure to meet this deadline could result in non-compliance penalties.

2. 2025 – Contributions Begin: Starting January 2025, employers must implement payroll deductions if employees are contributing to the cost of the program. By April 30, 2025, the first round of contributions must be submitted to the state. Employers should ensure that payroll systems are updated to calculate and withhold the correct amounts.

3. 2026 – Leave Applications Open: Employees who qualify for paid leave can submit applications beginning January 1, 2026. Employers must have clear policies and procedures in place to handle leave requests, maintain health benefits during leave, and ensure seamless employee reinstatement.

Employers should also allocate time to train HR teams and managers on the program's requirements. Proper preparation ensures smooth implementation and reduces the risk of compliance issues as the program becomes fully operational.

Navigating employee leave laws in Delaware can be complex, but with the right preparation and support, your business can ensure compliance and foster a positive work environment. We understand the challenges of managing HR responsibilities, which is why we're here to help you every step of the way. Book a demo with us today to learn how our comprehensive HR solutions can simplify leave management and keep your business running smoothly.