Delaware Becomes Eleventh State To Enact Paid Family Leave Law

• Published date: 18 May 2022
• Subject Matter: Employment and HR, Health & Safety, Employee Benefits & Compensation
• Law Firm: Seyfarth Shaw LLP
• Author: Mr Joshua Seidman and Mariame F. Dangnokho

Seyfarth Synopsis: On May 10, 2022, Delaware Governor John Carney signed the Healthy Delaware Families Act (the "Act") into law. Paid leave under the Act becomes available to eligible employees for family caregiving leave, medical leave, and parental leave reasons beginning on January 1, 2026. Delaware is the eleventh state to enact a mandatory paid family or paid family and medical leave program.¹

Legislative Background

On April 14, 2022 the Delaware General Assembly voted on and approved the Healthy Delaware Families Act. The Act was approved by a 29 to 11 vote in the Delaware House of Representatives and a 14 to 7 vote in the Delaware Senate. On May 10, Governor Carney signed the Act into law officially creating a new paid family and medical leave program in Delaware.

Key Dates

The Act establishes a Family and Medical Leave Insurance Fund (the "Fund"), and takes effect July 1, 2022. Beginning January 1, 2025 employees, employers, and self-employed individuals must begin contributing to the Fund. Covered workers can begin receiving paid family and medical leave benefits for covered absences on January 1, 2026.

The Act grants the Delaware Department of Labor (the "Department") authority to adopt general paid family and medical leave regulations, and the Delaware Department of Insurance authority to adopt paid family and medical leave regulations with respect to private plans. The Act does not indicate any specific dates by when these regulations must be published.

Substantive Highlights

Eligibility. The Act defines "covered individual" to mean an individual who (1) submits an application for paid family and medical leave benefits, (2) meets certain administrative requirements under the Act, (3) has been employed with the employer for more than 12 months, and (4) has worked at least 1,250 hours of service with the employer during the previous 12 months.

Employer Coverage. "Employer" under the Act means all those who employ employees working anywhere in the State of Delaware. "Employer" does not include anyone who employs less than 10 employees in Delaware, a business that is closed in its entirety for 30 consecutive days or more per year, or the federal government.

Notably, employers with between 10 and 24 employees during the previous 12 months are subject only to the parental leave provisions of the Act (see below). Meanwhile, employers with 25 or more employees during the previous 12 months are subject to all parental, family caregiving and medical...