The New Delaware Paid Family Leave and How Employers Must Prepare

Many states have some version of paid family leave, and Delaware is joining their ranks as of January 1, 2026. Businesses with at least 10 employees who work in the state will need to offer parental leave, while those with 25 or more employees need to provide full coverage, which includes medical leave and family caregiver leave.

But who pays for Delaware paid family leave, and how does it compare to other leave laws like the Family and Medical Leave Act (FMLA)?

Here’s everything employers need to know about Delaware paid leave, including who’s eligible for it, how to calculate benefits, how to determine the contribution rate, and how to handle claims.

What Is Delaware Paid Family Leave?

Delaware Paid Family and Medical Leave (PFML) is a paid leave program that provides eligible employees with leave benefits (up to $900 per week) if they need to take time off work for one of several leave reasons. Delaware PFML benefits include:

• 12 weeks of parental leave in a 12-month period to bond with a new child
• 6 weeks of medical leave or family caregiving leave in a 24-month period (or military exigency leave related to a family member’s military service)

The program was signed into law as part of the Healthy Delaware Families Act in 2022 and is gradually being implemented. The state of Delaware began collecting employer contributions for this program through payroll deductions on January 1, 2025. And beginning on January 1, 2026, eligible employees can claim benefits under the PFML program.

Employers can enroll directly with the Delaware Department of Labor, buy an approved private plan from an insurance provider, or offer a self-insured plan. Those that opt in to the state program can manage their account using the Delaware LaborFirst system.

Who Is Eligible for Delaware Paid Family Leave?

Delaware paid family leave applies to most, but not all, Delaware employers. Certain employers are exempt from providing paid leave benefits, including:

• Federal government employers
• Small businesses with nine or fewer employees 
• Seasonal businesses that close for at least one month

Likewise, not all Delaware employees are covered by the PFML program. To qualify for benefits, a worker must meet the following employee eligibility criteria:

• Have worked for their employer for at least 12 months
• Have performed at least 1,250 hours of work in the past 12 months
• Work in the state of Delaware for at least 60% of the time

Employers that have employees who aren’t expected to meet these thresholds (such as part-time or seasonal workers) can request an exclusion from the plan. 

Employees who work out of state for more than 40% of the time may still be eligible for the state plan if they:

• Work remotely for a Delaware-based team
• Are working out of the state of Delaware on a temporary assignment

Who Pays for Delaware Paid Family Leave?

Since the new Delaware paid family leave is a type of insurance program, employers don’t pay the wage replacement directly. Instead, it’s funded by employer contributions, which are determined by the type of leave the employer is required to cover. These are:

• Parental leave: 0.32% of the employee’s wage
• Medical leave: 0.40% of the employee’s wage
• Family caregiver and qualifying exigency leave: 0.08% of the employee’s wage

Although employee contributions aren’t required by law, employers can require their employees to pay up to 50% of the weekly contribution. The Delaware state government has given this example: For an employee with an annual wage of $76,656, the employer would contribute $11.80 per week — or the employer and employee could share the cost by each contributing $5.90 per week.

Delaware Paid Family Leave vs. the FMLA

The Delaware Paid Family and Medical Leave program has a lot of similarities with the Family and Medical Leave Act (FMLA), a federal law. In fact, it’s possible that some employees will qualify for the Delaware PFML program and the FMLA at the same time. So how does that work?

In short, the FMLA covers several of the same leave reasons as Delaware PFML, including military exigency, the birth of a child, and an employee’s own serious health condition. However, the FMLA only applies to covered employers with 50 or more employees, and it doesn’t provide any paid leave benefits, just job protection.

Under the FMLA, covered employees can take up to 12 weeks of leave for most qualifying reasons (such as parental leave and medical leave benefits) and up to 26 weeks for military caregiver leave. They must also be allowed to keep their health care while on leave.

If an employee qualifies for both types of leave, they would receive PFML benefits until they run out, and then they can stay on unpaid FMLA leave if there’s any remaining.

Managing Employer Responsibilities Under PFML

According to the Delaware Department of Labor, employers have at least four primary responsibilities when it comes to managing Delaware paid family leave. Pulpstream’s leave of absence management platform can help you with all of them. Here’s how:

1. Assess eligibility

First you need to determine if an employee is eligible for PFML. This will depend on how long they’ve worked for you, how many hours they’ve worked in the past year, and how much of their work is performed in Delaware. You’ll also need to add up your total worker head count to determine if your organization is covered by PFML at all.

Pulpstream’s leave of absence process automation platform does the work for you, with a built-in rule engine that can assess eligibility criteria. Easily find out if an employee is a covered individual under the FMLA, PFML, and other state and federal leave laws, all in one place.

2. Track hours and wages

Next you’ll need to track hours and wages. This includes the number of hours that an employee works in the state, as well as their annual wages or salary. These numbers determine the employer/employee contribution and the weekly benefit amount.

Use Pulpstream’s attendance management system to track employee attendance, their accrued leave balance, and their approved absences. This is especially important if an employee takes intermittent leave, which both the FMLA and PFML allow.

3. Calculate the contribution rate

Contributions are a percentage of the employee’s wage, and can either be fully paid by the employer or split between the employer and employee. Businesses with nine to 25 employees only need to pay 0.32% of the employee’s wages for parental leave, while larger employers also must pay 0.40% for medical leave and 0.08% for family caregiver leave.

Contributions are capped on wages above the FICA wage cap of $176,100.

Using Pulpstream’s payroll automation tools and integrations, you can automatically calculate wages, tax deductions, and employer/employee contributions, helping you administer PFML leave and other employee benefits.

4. Handle employee claims

Finally, you’ll need to handle an employee’s initial claim to ensure that they’re eligible for benefits under PMFL. Qualifying employees are entitled to 80% of their average weekly wage, up to a maximum of $900 per week.

When you approve a claim through the Delaware LaborFirst system, the Department of Labor will pay out employee benefits. If you deny an employee’s claim, they’re entitled to an appeals process through the Delaware Division of Paid Leave.

Pulpstream makes it easy to streamline claims management for PFML leave, as well as other types of claims, like worker’s compensation and disability insurance.

Administer Paid Family Leave With Pulpstream

The Delaware Paid Family and Medical Leave (PFML) insurance program offers weekly benefits to eligible employees who take parental leave, medical leave, and certain other types of leave. It applies alongside any other types of leave an employee is eligible for, such as leave from the Family and Medical Leave Act.

Employers are responsible for determining how much Delaware paid family leave an employee is allowed. It falls to the employer to assess employee eligibility, calculate contributions, and facilitate the administration process when an employee files a claim.

Pulpstream’s cloud-based platform is purpose-built for leave management, with tools for tracking employee attendance, administering employee benefits, and managing claims. Plus, employees can access a self-service portal to submit a leave request online.

Request a demo today to see how it works for yourself!