As you may know, Delaware's Paid Family Leave (PFL) Act will soon require all employers with more than 10 employees to offer paid family leave benefits starting January 1, 2026. This new legislation aims to support employees in balancing work and family responsibilities, but it also brings important decisions for your business.
What You Need to Know:
Paid Leave: Provides up to 80% of an employee's average weekly wage, capped at $900/week.
Eligibility: Applies to employees with at least 1,250 hours worked in the past 12 months.
Leave Duration: Up to 12 weeks per year for various family and health-related reasons.
Benefits Start: Through the state, prefunding will begin on January 1, 2025 and will come into effect January 1, 2026. If you opt to enroll in a private solution that is approved by the state you will not have to prefund and will begin paying on January 1, 2026.
Types of leave Covered:
Care for a new child (up to 12 weeks per year)
Care for a family member with a serious health condition (up to 6 weeks, every 24 months)
Address a personal serious health condition or injury (up to 6 weeks, every 24 months), or
Assist while loved ones are on overseas military deployment (up to 6 weeks, every 24 months)
While the state program will be in place to administer these benefits, you have the option to choose a private insurance solution that could better fit your company's needs.
Why Consider a Private Solution?
Cost Savings: Lock in better rates before December 2024 and avoid pre-funding with the state.
Flexibility: Tailor the plan to suit your workforce, potentially bundling with other benefits for additional savings.
Service Excellence: Experience more responsive claims handling and customer service compared to the state.
Why Consider the State Solution?
Additional benefit required through private: Generally private providers mandate that you add additional lines of coverage in order to install PFL.
Need to get approval for private and not through state: You would need to request approval through the state in order to get your private coverage approved.
Employer Responsibilities
Notice Requirements: Provide written notice to employees about their rights under the PFL Act.
Record Keeping: Maintain records of PFL usage and documentation.
Please refer to the Delaware state page on PFL for additional information.
Ascela is here to help you navigate your options.
Contact our team today to review your options through our private solution carrier partners.
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