Delaware Enacts Paid Family and Medical Leave Under the Healthy Delaware Families Act

What Changed

Delaware enacted the Healthy Delaware Families Act (Senate Bill 1, signed into law as 2022 Ch. 301), creating a statewide paid family and medical leave (PFML) insurance program. The law establishes a state-administered fund that will provide eligible employees with paid leave for qualifying family and medical reasons.

The program will be funded through payroll contributions shared between employers and employees. Delaware joins a growing number of states — including Connecticut, Colorado, Oregon, and Maryland — that have enacted comprehensive paid family and medical leave programs.

Who Is Affected

Employers with 10 or more employees in Delaware will be required to participate in the parental leave portion of the program. Employers with 25 or more employees will be required to participate in the full program, including medical leave and family caregiving leave. Smaller employers may opt in voluntarily.

All Delaware employees who meet eligibility requirements — generally based on hours worked and tenure — will be eligible to apply for benefits once the program begins paying out.

Where It Applies

Delaware statewide. The program covers employees who perform work in Delaware, regardless of where the employer is headquartered.

When It Takes Effect

The law implements a phased rollout:

January 1, 2025: Employers must begin withholding and remitting payroll contributions to the state fund.
January 1, 2026: Employees become eligible to apply for and receive paid leave benefits.

Employers have approximately 18 months from the date of this notice to prepare payroll systems, update policies, and notify employees.

Why It Matters

Paid family and medical leave is one of the fastest-growing areas of state-level employment law. Delaware's program adds another state to the patchwork of PFML mandates that multi-state employers must navigate. The contribution requirements will affect payroll operations, and the benefit availability will require updates to leave policies, employee handbooks, and manager training.

Employers who fail to make required contributions may face penalties, and the program creates new employee rights that must be administered alongside existing federal FMLA obligations.

The Humareso Take

Another state, another paid leave program. If you're a multi-state employer, you're probably getting used to this by now — but each state's program has its own quirks, thresholds, and timelines. Delaware's phased approach gives employers a reasonable runway, but 2025 will be here before you know it. We recommend starting payroll system updates early and working with your Humareso team to map out how Delaware's program interacts with your existing FMLA and any other state leave programs you're already managing.

Recommended Action Steps

Determine your participation requirements based on your Delaware employee headcount (10+ for parental leave; 25+ for full program).
Begin payroll system updates to accommodate the new contribution withholding well in advance of the January 1, 2025 start date.
Update your employee handbook to include information about the Delaware PFML program, including employee rights and the benefit timeline.
Develop an employee communication plan to notify Delaware-based employees about the new program, contribution amounts, and when benefits will become available.
Review the interaction between Delaware PFML and federal FMLA to ensure your leave administration procedures account for concurrent leave obligations.
Contact your Humareso representative for help building a Delaware PFML compliance roadmap tailored to your organization.