Delaware family, medical leave act hot topic for businesses

By Logan B. Anderson
Posted 2/21/22

WILMINGTON — The sponsor of a bill that seeks to create a 12-week paid family and medical leave program in the First State is taking her case to business leaders.

First District Sen. Sarah …

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Delaware family, medical leave act hot topic for businesses

Posted

WILMINGTON — The sponsor of a bill that seeks to create a 12-week paid family and medical leave program in the First State is taking her case to business leaders.

First District Sen. Sarah McBride, D-Wilmington, along with state finance, policy and labor leaders, met virtually with members of the Delaware State Chamber of Commerce Wednesday for a webinar on Senate Substitute 1 for Senate Bill 1 — the Healthy Delaware Families Act.

On March 2, the state senator will address the Georgetown Chamber of Commerce at its next Economic Development Lunch.

“I believe that modernizing our economy by establishing a paid family and medical leave insurance program lies at both the heart of our public health and economic recovery,” Sen. McBride said.

The proposed act moves to create a statewide paid family and medical leave program or require employers to provide a similar benefit. If enacted as introduced, eligible Delaware employees could access up to 12 weeks of paid family and medical leave for a qualifying event. An approved cause for leave could be a worker’s own health, to care for a family member, to bond with a new child or to address the impact of a family member’s military deployment.

The Wilmington Democrat said her bill is modeled after similar programs already in use in nine U.S. states and Washington, D.C.

The program would be funded by a new payroll tax, amounting to less than 1% of wages split between the employer and the employee.

“The insurance program would be funded by a payroll deduction of .8%, split between the employer and employee, equaling about $4 for every $1,000 of wages paid. Employers can choose to use either the statewide insurance program or a private plan or policy that meets or exceeds the state’s,” Sen. McBride said.

The initiative would create a statewide insurance program that would provide up to 80% of an employee’s wages for up to 12 weeks for eligible Delaware workers. The bill supports three months of leave for parents and six weeks of personal medical, family caregiving and military impact leave.

Workers would not be eligible for the program until they have worked at their current job for one year plus 1,250 hours. Delaware State Secretary of Finance Rick Geisenberger, clarified Wednesday that an employee’s eligibility clock would reset with every new job.

The webinar was co-sponsored by the Society for Human Resource Management, including both its Delaware and Delmarva chapters.

Jacqueline Poquette, state director of the Delaware SHRM council, addressed her group’s concerns with the proposed bill.

“Employers are now finding themselves forced to navigate the fragmented patchwork of state and local paid leave laws, resulting in significant compliance burden. Meeting compliance and reporting obligations takes a lot of time and resources and can be confusing for even the most knowledgeable individual,” Ms. Poquette said.

In May 2021, when Sen. McBride introduced Senate Bill 1, the measure laid out a new family and medical leave program, but received a a great deal of pushback from the business community. Since then, Sen. McBride has been working with stakeholders and constituents to create a new proposal.

The new bill, with the compromises reached, was released from committee last month and should be debated on the floor of the Senate later this legislative session.

“This is a conversation that’s ongoing that will continue even after passage of the legislation,” Sen. McBride said.

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