Here’s a simple breakdown of what you need to do:
Step 1: Count Your Eligible Employees
Step 2: Determine Which PFML Plans Apply to Your Company
Step 3: Get Your State Sign-In Credentials
Step 4: Register Your Company on the LaborFirst Platform
Step 5: Update your payroll system to handle employee contributions, starting January 1, 2025.
Step 6: Notify your employees about the new Paid Leave law (post the required notices in your workplace).
This notice covers the first four steps. You can find more detailed guidance and additional resources on the Delaware Department of Labor website by clicking here.
What You Need to Know About the Delaware PFML Program
- Private Insurance Option: You can choose a private insurance plan instead of the State’s plan, but you still need to register to “opt-out” of the State plan by December 15, 2024. If you go this route, your company’s employee contributions won’t need to start until January 2026. Contact your employee benefits broker for more details.
- Small Employers: If you have fewer than 10 eligible employees, you don’t have to participate in the program, but you can still choose to participate voluntarily. If you do, you’ll need to register.
Step 1: Determine Your Eligible Employee Count
Eligible employees include:
- Full-time or part-time workers who spend at least 60% of their work time in Delaware.
- Employees who have been with your company for at least 12 months and have worked at least 1,250 hours over the past 12 months (that’s about 25 hours a week).
Note: You can include (but don’t have to) employees who:
- Work remotely outside Delaware but are part of a Delaware-based team.
- Are on temporary assignments outside Delaware.
If your eligible employee count is 10 or more, you must register your company by December 1, 2024. It’s a good idea to check with your payroll provider to see if they’re handling this registration for you.
Step 2: Determine Which PFML Plans You Need to Offer
Based on the number of eligible employees, your company will need to offer different PFML plans:
- 10-24 eligible employees: You’ll be required to offer Paid Parental Leave only. The cost is 0.32% of an employee’s wages (up to the Social Security wage cap).
- 25 or more eligible employees: You’ll need to offer all available PFML benefits, including Parental, Medical, Family Caregiving, and Qualified Exigency Leave. The cost is 0.8% of an employee’s wages (up to the Social Security wage cap).
Good to know: The employer can choose to deduct up to half of the cost from the employee’s wages. These deductions start with your first payroll in January 2025.
Step 3: Get Your State Sign-In Credentials
To get started, you’ll need to create sign-in credentials for the State’s platform on My.Delaware.gov.
Here’s what you’ll need:
- Your driver’s license or passport.
- Your cell phone (you’ll need to scan your driver’s license or passport and take a selfie).
- Your Employer Identification Number (EIN).
- The legal name of your company (as listed on federal tax filings).
- Employer contact info (the person handling PFML, like an HR manager or payroll admin).
- Your business address and any other locations where employees work.
If you don’t have a My.Delaware.gov account yet, you can create one by visiting https://labor.delaware.gov/laborfirst/employer-resources-forms-and-faqs/.
There is an Employer LaborFirst User Guide you can download below to assist you in the registration and identity proving process.
Employer LaborFirst User Guide
Tip: If you use Delaware One Stop, you may already have created sign-in credentials. Go to your My.Delaware.gov dashboard. If a LaborFirst logo appears, you can skip this step.
Step 4: Register Your Company on LaborFirst
Once you’ve got your My.Delaware.gov account set up, you can easily register your business on the LaborFirst platform by logging in through the MyDelaware dashboard. The platform will guide you through the registration process.
Click Here for Step-by-Step Instructions & Additional Resources
If you have any questions or need assistance, please don’t hesitate to reach out to Linda Pappajohn, our Director of HR Consulting Services. We’re here to help!
