Compliance Corner

Compliance corner: Delaware final rule on paid leave regulations

Enacted: 03/01/2024
Effective: 03/11/2024

Delaware adopted final rules implementing the Healthy Delaware Families Act (HDFA) on June 30, 2023.  The regulations have been amended to address the coordination of benefits and notice requirements for the HDFA and its Paid Family and Medical Leave (PFML) program.  Here are some takeaways:

  • The amended definitions include “family and medical leave benefits” for family caregiving, medical or parental leave and clarifying the definition of “employee” and “willful” for the HDFA and PFML program.
  • A “covered individual” is defined as an individual employed for at least 1,250 hours of service within Delaware with the employer during the previous 12-month period.
  • The regulation also includes requirements regarding the coordination of other benefits offered by employers, including paid time off (PTO) and the use of PTO to supplement wages.  Employers must provide employees with notice of their coordination policy for PTO and PFML benefits, including whether unused PTO is required before accessing PFML benefits, how much PTO is required, and whether accrued PTO counts toward the total length of leave provided under the HDFA.

The Department of Labor’s Division of Paid Leave (DPL) has amended regulations to require employers to provide PFML notices to all employees at least 30 days before payroll contributions begin on Jan. 1, 2025. If an employer provides a disability or paid leave policy as primary coverage, the PFML benefit payments must be reduced to what the employer-provided policy pays so that the covered individual receives no more than 100% of their average weekly wage. If the PFML is primary, then the employer-provided leave policy supplements the PFML benefit up to no more than 100% of a covered individual’s average weekly wages.

The final rule emphasizes that covered individuals cannot receive more than 100% of their average weekly wage during their PFML benefit period. Employers and covered individuals are both responsible to review benefit information to avoid any overpayment. The amended rule also requires employees to provide at least 30 days’ notice prior to filing a claim for leave under the PFML program. If the leave is foreseeable at least 30 days in advance and the employee fails to give advance notice, the employer may delay coverage until 30 days after the date the employee does provide notice.

POTENTIAL ACTION ITEMS:

  • Employers must obtain the PFML notice from the DPL website when it is published and provide the notice to employees within the time limits provided.
  • Employers should review and revise, if necessary, any coordination of benefits policies to comply with the final rule.
  • Employers should revise written leave policies related to procedures for employees to notify the employer of the need to take leave.

References for additional information:

272675_466707.pdf (statescape.com)
Delaware.gov – Official Website of the State of Delaware

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