WILMINGTON — Delaware labor officials are forging ahead with getting the state ready for the impending paid family and medical leave program.
That preparation includes outreach to businesses big and small, helping them understand what needs to be done to opt into the program or get private plan approval by Dec. 1, 2024.
Delaware Paid Leave Program Manager Chris Counihan will be hosting a webinar for businesses on the program on July 31. More than 500 attendees are registered and he said a second webinar will be scheduled soon.
“We can put posters and billboards up all over the state, that still may not be the best way to get the information to employers what they need to do to get ready for this program,” Counihan told the Delaware Business Times. “That’s where outreach is key. I had one event where I had to answer an hour and a half of questions, because this is a big deal.”
In 2022, Gov. John Carney signed the Healthy Delaware Families Act, setting the stage to guarantee up to 12 weeks of paid leave for new parents or those seeking medical leave in 2026. The paid leave is funded through a 0.8% tax split between the employee and the employers.
Eligible Delaware workers could receive up to 80% of their average weekly wages or up to $900 through the state-run insurance program. The program applies to businesses with more than 10 employees. Businesses with 25 employees or less are not covered for caregiving or medical leave.
Since Counihan was hired by the Delaware Department of Labor later that year, he’s hired five employees to his office in Wilmington’s Fox Valley, researched methods to outsource training, education and collections to specialist groups and prepared regulations for coordination on benefits, job discrimination and workman’s compensation.
He’s also in the middle of building out the information system that’s needed to serve as the backbone for the website to administer the paid leave program as well as the unemployment insurance program. The website should be online next year with Infosys as its contractor.
Paid family and medical leave would only apply to full-time employees who worked 1,250 hours, or a full year, much like the federal Family Medical Leave Act of 1993.
Come Sept. 1, Counihan will be starting the process for small businesses to either opt in to the program or show they have a private plan in place. As of Wednesday morning, he said he did not think any insurance carrier had their private plans approved through the Delaware Office of Insurance, though some could be in the filing process.
“I think there’s about four insurance carriers that are in the process of getting approval, and I believe, based on the information I’ve gotten from Insurance associations, that maybe 10 companies will be offering this coverage here in Delaware,” Counihan said. “Some will only provide it if they also provide some other line of coverage like group disability or medical.”
Still, Delaware companies need to either be on the market for private plans now, start to weigh the state regulations on paid medical leave programs – or understand the complexities of self-insuring this.
“That’s an important thing that needs to be handled, and we’re here to answer any questions we can help with,” he said.
To register for the Delaware Paid Leave Webinar on July 31 at noon to 1:30 p.m., visit www.eventbrite.com/delaware-paid-leave.
