As of January 1, 2025, Delaware has introduced its Paid Family and Medical Leave (PFML) program under the Healthy Delaware Families Act. This significant development aims to support employees during critical life events while helping employers attract and retain top talent. For HR and payroll professionals, understanding and complying with this new program is crucial. In this blog post, we'll explore the key aspects of Delaware's PFML program, the compliance requirements, and why compliance is essential for your business. 

Understanding Delaware's PFML Program 

Program Overview: Delaware's PFML program mandates contributions from both employers and employees to fund paid leave benefits. The program covers various types of leave, including parental, family care, personal medical, and military exigency leave. Here's a breakdown of the key components: 

  • Eligibility: Employees who have worked for at least one year and 1,250 hours with a single employer are eligible for benefits. 
  • Contribution Rate: The total contribution rate is 0.8% of an employee's wages, shared between employers and employees. Contributions apply to wages up to the Federal Insurance Contributions Act (FICA) wage cap, set at $176,100 for 2025. 
    • Note: Employers with 10-24 employees are subject to only the parental leave mandates and have a lower contribution rate of 0.32%.
  • Types of Leave: 
  • Parental Leave: Up to 12 weeks per year 
  • Family Care Leave: Up to 6 weeks every 24 months 
  • Personal Medical Leave: Up to 6 weeks every 24 months 
  • Military Exigency Leave: Up to 6 weeks every 24 months 
  • Benefit Amount: Employees can receive up to 80% of their wages, capped at $900 per week. 

Claim Process: Employees can start making claims under the PFML program beginning January 1, 2026. The process involves notifying the employer, gathering necessary documentation, submitting the claim via the Delaware LaborFirst platform, and awaiting approval from the Delaware Department of Labor. 

Compliance Requirements 

Who Must Comply: 

  • Employers with 10 or More Employees in Delaware: The program applies to employers with 10 or more employees working in Delaware, regardless of where the company is headquartered. 
  • Location of Employees: Compliance is required for employers that have employees working in Delaware. 
  • Employee Count: If an employer has more than 10 employees overall but fewer than 10 employees working in Delaware, they are not required to comply with the PFML program. 

Why Compliance Matters 

Legal Obligations: Compliance with Delaware's PFML program is not optional. Employers with 10 or more employees in Delaware must participate, and failure to comply can result in penalties and legal repercussions. Ensuring your business adheres to the program's requirements protects you from potential fines and legal disputes. 

Employee Satisfaction and Retention: Offering paid family and medical leave is a significant benefit that can enhance employee satisfaction and loyalty. By complying with the PFML program, you demonstrate your commitment to supporting your employees during important life events, which can lead to higher retention rates and a more motivated workforce. 

Competitive Advantage: In today's competitive job market, offering comprehensive benefits like paid family and medical leave can set your business apart. Compliance with the PFML program can make your company more attractive to top talent, giving you an edge over competitors who may not offer similar benefits. 

Streamlined HR and Payroll Processes: Implementing the PFML program requires accurate tracking of employee contributions, leave balances, and claims. Utilizing advanced HR and payroll software can simplify these processes, ensuring compliance and reducing administrative burdens. Our software solutions are designed to help you seamlessly integrate PFML requirements into your existing systems, providing real-time updates and automated reporting. 

How Our HR & Payroll Software Can Help 

Navigating the complexities of Delaware's PFML program can be challenging, but our HR and payroll software for Business Central is here to help. Here's how we can support your business: 

  • Automated Compliance: Our software automatically calculates contributions, tracks leave balances.
  • Employee Self-Service: Employees can easily access their leave balances.
  • Expert Support: Our team of HR and payroll experts is available to provide guidance and support, ensuring you understand and meet all PFML obligations. 

Downloadable Resources 

To assist you further, we have linked to a sample employee notification about the PFML program. This template can be customized to fit your company's needs and helps ensure your employees are well-informed about the new program and its impact on their paychecks. 

Conclusion 

Delaware's Paid Family and Medical Leave program represents a significant step forward in supporting employees and enhancing workplace benefits. By understanding the program's requirements and ensuring compliance, you can protect your business, improve employee satisfaction, and gain a competitive advantage. Our HR and payroll software is designed to simplify compliance and streamline your processes, allowing you to focus on what matters most—your people. 

For more information on how our solutions can help you navigate Delaware's PFML program, contact us today! 

Integrity Data HRP – Your Complete HRIS for Dynamics Including Payroll for BC

Integrity Data HRP is your complete HR, Timekeeping and Payroll platform from within Dynamics GP and D365 BC. Everything works together effortlessly so you can focus on what really matters, your people.

  • Escape the piles of paper and keep everything in one digital employee file.
  • From Applicant to Retirement, you can manage Recruitment & Onboarding, Benefit Elections, Performance Reviews, Certifications & Licenses, Reports, Payroll, Time & Attendance, and much more, all in one solution.
  • Employee Self-Service Portal is included for both Business Central and GP.
  • Full-Service Tax Filing and ACA Reporting Services available as well.

Reach out today and our no-pressure solution experts will answer your questions to see if we are a good fit for your organization.

Integrity Data has been serving the Dynamics community since 1996. Our passion is to help HR and payroll professionals own their time so they can focus on helping their people. As always, your people are our priority.

Integrity Data HRP Screenshot