Delaware Paid Family Leave: Employer Requirements, Contribution Rates and Private Plans

Delaware Paid Leave began collecting contributions on January 1, 2025, and employees began filing benefit claims on January 1, 2026 (Delaware Department of Labor (opens in a new tab)). Employers with 10 to 24 eligible Delaware employees provide parental leave only, and employers with 25 or more provide parental, medical, family caregiving and qualifying-exigency leave. For 2026, contributions are 0.32% of wages for parental leave, 0.40% for medical leave and 0.08% for family caregiving and qualifying-exigency leave, or 0.80% combined when all lines apply (19 Del. C. § 3705 (opens in a new tab)). Employers can deduct up to half from employee pay. Eligible workers receive 80% of average weekly wages, up to $900 a week.

Does your employer have to provide Delaware Paid Leave?

Coverage depends on how many eligible Delaware employees the business has, and the answer decides which leave types apply (Delaware Department of Labor Employer Guide (opens in a new tab)):

The statute builds these tiers into its definition of a small business: nine or fewer employees for parental leave, and 24 or fewer for family caregiving and medical leave (19 Del. C. § 3701(23) (opens in a new tab)). Federal government employers are exempt, and so are seasonal operations that close completely for at least 30 days in a row and do no business during the closure (Delaware Department of Labor employer information (opens in a new tab)).

Counting employees takes some care. The count is calculated each quarter through Hours and Wage reporting, and it accounts for work location, affiliated or integrated employers, W-2 status and FICA wages (Employer Guide (opens in a new tab)). An employee generally must perform at least 60% of their work physically in Delaware during the quarter to count. If you have remote staff, workers in several states or related companies, confirm the count with the Delaware Division of Paid Leave before you settle on a coverage tier. The Small Business FAQ (opens in a new tab) also covers voluntary enrollment for employers under the threshold.

What are the Delaware Paid Leave rates for 2026?

The 2026 rates are the same as 2025, because the statute set both years at these levels (19 Del. C. § 3705(b) (opens in a new tab)):

An employer with 10 to 24 employees generally pays only the 0.32% parental rate. An employer with 25 or more pays the combined 0.80% (Employer Guide (opens in a new tab)). Starting in 2027, the Department sets rates using actuarial principles within limits in the statute, so check the new figure before you budget for 2027 payroll.

How much can an employer deduct from your paycheck?

The employer is responsible for the full contribution, and it can require employees to pay up to 50% of it through payroll deductions (19 Del. C. § 3705 (opens in a new tab)). An employer may choose to pay more than half or all of it, and the employee share can differ by class of employee if the employer follows the Department's rules and gives the required notice.

For a business with full coverage in 2026, that works out to at most 0.40% of covered wages from the employee, with the employer paying at least the other 0.40%. On $1,000 of weekly wages, the most an employee could see deducted is $4.00, with the employer paying at least $4.00.

How much Delaware Paid Leave pays and how long it lasts

The weekly benefit is 80% of your average weekly wages over the 12 months before you apply, rounded up to the nearest even dollar (19 Del. C. § 3704 (opens in a new tab)). For 2026, the minimum is $100 a week, unless your average weekly wage is below $100, in which case you receive your full average weekly wage. The maximum is $900 a week, and that cap also applies in 2027.

Time limits depend on the type of leave (19 Del. C. § 3703 (opens in a new tab)):

• Parental leave: up to 12 weeks in an application year.
• Medical, family caregiving and qualifying-exigency leave: a shared maximum of six weeks in any 24-month period.
• All leave combined: no more than 12 weeks in an application year.

So, a parent who takes 12 weeks of parental leave has used the full year's limit, and the six-week medical and caregiving allowance is shared across those three reasons rather than available for each one.

Who qualifies for benefits?

Your employer's participation doesn't automatically make you eligible. You generally must have worked for the employer for at least 12 months and at least 1,250 hours during the applicable period, submit an application, have a qualifying event and provide the required documents, including a health care provider's certification for a serious health condition (19 Del. C. § 3702 (opens in a new tab)).

Qualifying events include the birth, adoption or foster placement of a child, caring for a family member with a serious health condition, your own serious health condition and qualifying military exigencies (Delaware Department of Labor (opens in a new tab)). Claims under the state plan go through Delaware LaborFirst, while employees covered by an approved private plan follow that plan's process (Delaware Department of Labor employee information (opens in a new tab)).

Job protection, health coverage and claim decisions

When covered leave ends, you're entitled to return to the same job or an equivalent one with equivalent seniority, status, benefits, pay and terms (19 Del. C. § 3707 (opens in a new tab)). During leave, the employer must keep your health benefits in place as if you were still working, and you keep paying your usual share of the premium. Employers can't retaliate or discriminate against you for requesting, applying for or using covered leave.

Decisions move quickly. The employer must approve or deny a completed application within five business days of receiving the documents it needs, and a denial must state the reason (19 Del. C. §§ 3709 to 3711 (opens in a new tab)). You can ask the Department to review a determination within 60 days, and you can appeal a Department or private-plan decision to the appeal board within 30 days.

Covered leave that also qualifies under the federal FMLA runs at the same time as FMLA leave. An employer can coordinate the benefit with disability or family-care leave benefits, but it can't make you use accrued PTO before you access Delaware Paid Leave (Delaware Administrative Code, Regulation 1401 (opens in a new tab)).

Can an employer use a private plan instead of the state plan?

Yes. An employer can apply to meet all or part of its obligations through an approved private plan (19 Del. C. § 3716 (opens in a new tab)). There are three routes:

• Insured plan: a policy filed with and approved by the Delaware Department of Insurance and issued by an authorized carrier.
• Self-insured plan: for employers with at least 100 eligible employees, subject to approval, a surety bond and a prefunded claims account.
• Hybrid plan: a private plan for one or more coverage lines and the state plan for the rest.

Whatever the route, the plan must meet or exceed the state program's minimums: the same covered reasons and maximum durations, at least the statutory wage replacement and weekly minimum and maximum, intermittent or reduced-schedule leave where allowed, no extra conditions beyond those in the law, employee costs no higher than the state plan, and internal claim review and appeal procedures (Regulation 1401, § 17 (opens in a new tab)).

To use an insured plan, the employer applies through Delaware LaborFirst and uploads the private policy and declarations page. Approval is generally renewed each year, and the employer still files quarterly reports (Delaware Department of Labor private-plan FAQ (opens in a new tab)). A self-insured employer must also provide a written plan, a surety bond generally equal to one year of state-plan contributions and proof of a dedicated claims reserve, with further rules on audits, renewals and plan changes.

If you're shopping for an insured plan, ask the agent or carrier:

• Is the policy form approved by the Delaware Department of Insurance, and is the carrier authorized in Delaware?
• Which coverage lines does the policy provide, and does it meet or exceed Delaware's minimum benefits?
• Who administers claims, and what are the claim and appeal procedures?
• What will employees pay, and how are renewals, cancellations and plan changes handled?
• Which documents do we need to submit through LaborFirst?

What employers must do in LaborFirst

Employers register and manage Paid Leave through Delaware LaborFirst. Each quarter, an enrolled employer files an Hours and Wage Report listing employee information, hours, wages, enrollment details and Delaware versus other-state wages, which sets contributions and tracks benefit eligibility (Delaware LaborFirst Hours and Wage Reporting (opens in a new tab)). Reports and payments are due 30 days after each quarter ends: April 30, July 30, October 30 and January 30.

Late filings carry a cost. After a six-day grace period, interest at 1.5% may begin and penalties may apply (Employer Guide (opens in a new tab)). The relief from late penalties during 2025 covered the program's start-up period, so plan on meeting the regular deadlines going forward.

Employers also owe notices. Each employee must get written notice, at hire and when leave is requested or the employer learns leave may involve a qualifying event, covering the right to benefits, how to use them, the benefit amount, how to file, job protection and health coverage rights, the ban on retaliation, the right to complain, and whether coverage comes from the state or a private plan (19 Del. C. § 3710 (opens in a new tab)). A poster must be displayed in English, Spanish and any language that is the first language of at least 5% of the workforce, if the Department provides that version.

Are Delaware Paid Leave benefits taxable?

It depends on the type of leave and who paid the contributions. Under IRS Revenue Ruling 2025-4 (opens in a new tab), family leave benefits are generally included in federal income and reported on Form 1099-G (IRS Form 1099-G instructions (opens in a new tab)). Medical leave benefits tied to employee contributions are generally excluded, while the share tied to employer contributions is generally included.

Under the state plan, you can choose to have 10% federal and 3% Delaware tax withheld from benefits (Regulation 1401, § 15.1 (opens in a new tab)). Family leave or sick pay amounts subject to federal withholding are generally subject to Delaware withholding as well (Delaware Division of Revenue (opens in a new tab)). A tax professional can tell you how these rules apply to your return.

Frequently asked questions

Can my employer make me use vacation before Paid Leave?

No. An employer can coordinate Paid Leave with disability or family-care benefits, but it can't require you to use accrued PTO first (Regulation 1401 (opens in a new tab)).

Do private-plan employers still report to the state?

Yes. Approved private-plan employers still submit quarterly enrollment, wage and hours information through LaborFirst (Delaware Department of Labor private-plan FAQ (opens in a new tab)).

What happens if my employer's headcount changes?

An employer that crosses 10 or 25 eligible employees gains a coverage line, and one that drops below loses it, with notice duties to employees either way (Employer Guide (opens in a new tab)).

Can a self-employed person join Delaware Paid Leave?

Ask the Delaware Division of Paid Leave whether you can be covered through an employer, a voluntary employer plan or another current enrollment route (Delaware Department of Labor (opens in a new tab)).

Next steps for your business

Count your eligible Delaware employees, confirm which coverage lines apply, decide your contribution split, register in LaborFirst and send employee notices. If you're considering an insured private plan, Riskado's directory lists insurance agencies across the US, including Delaware, so you can bring the questions above to an agent near you.