Following in Maryland’s footsteps, on May 10, Delaware Gov. John Carney signed S.B. 1 known as the Healthy Delaware Families Act, which takes effect on July 1. In brief, the act establishes a Family and Medical Leave Insurance Account Fund (fund), which employers primarily fund with a 0.8% payroll tax. The act provides eligible employees with up to 12 weeks of paid parental leave and six weeks of paid medical, caregiving and military leave. Contributions to the fund will begin on Jan.1, 2025, with benefits available to employees on Jan. 1, 2026.

Which Employers Are Covered by the Act?

Employers with at least 25 employees are subject to these parental, family caregiving and medical leave provisions. Those with 10 to 25 employees must comply with parental leave provisions only, and compliance is optional for employers with fewer than 10 employees. The act permits businesses to opt out of the obligations under the act if they have an established paid leave program that offers comparable benefits. Employers will be required to apply to the Delaware Department of Labor for approval of any such private plan.

Who Is an Eligible Employee Under the Act?

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