WILMINGTON — As Delaware prepares for the implementation of paid family medical leave, there are important steps employers must take now to be fully compliant and ready to provide this valuable benefit to their employees on Jan. 1, 2026. Delaware LaborFirst, the state’s new online administrative system for the Paid Family Medical Leave (PFML) insurance program, is now open to assist employers.
From now through Dec. 1, 2024, employers can either voluntarily enroll in the public plan, Delaware Paid Leave, or provide the mandated coverage through a private plan. If an employer wants to provide PFML coverage through a commercial insurance policy, they only need to notify the Division of Paid Leave that they have purchased a Delaware Department of Insurance-approved Group PFML insurance policy. Employers can also apply to the Division to provide their employees with PFML coverage thorough a self-insured program.
If an employer qualifies and chooses to self-insure their employees’ paid leave benefits, or if a business chooses to provide benefits beyond what the law requires, the Division of Paid Leave will provide employers and third-party administrators with free access to the state’s online administrative system, Delaware LaborFirst, to make all those tasks easier. This completely free and voluntary service offers an Administrative Services Only (ASO) contract for self-insured plans.
If an employer self-insures, it means that they agree to cover all the financial costs of their employees’ income-replacement benefits while their employees are on approved leave. It also means that the employer assumes all legal responsibilities of providing those benefits in compliance with the terms of the Healthy Delaware Families Act and its regulations.
Employers can self-insure in two ways:
- Self-insure their employees’ entire paid leave benefit, or
- Register with Delaware Paid Leave, which will pay out the minimum benefit required by law (80% of wages, up to $900 per week), for the minimum leave duration required. Employers can then “top up” their plan, meaning they can self-insure for any additional benefits (additional weeks or higher percentages or maximum dollar amounts per week) that they might generously provide to their employees.
Employers who choose Delaware Paid Leave will have access to Delaware LaborFirst for support with managing the reporting/tracking of their employees’ hours and wages, as well as administering the claims-adjudication process, ensuring compliance with the rules of Delaware Paid Leave.
Learn more about Delaware Paid Leave and this ASO offer at de.gov/paidleave.
