AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM.
Summary
HB179 amends Delaware’s Family and Medical Leave Insurance Program by changing the definition of “employer” for purposes of the chapter. Under the bill, employers with fewer than 25 employees in the state during the previous 12 months would be excluded from the program’s coverage. As written, the bill also preserves the existing distinction that employers with 10 to 24 employees are subject only to parental leave provisions, while employers with 25 or more employees are subject to parental, family caregiving, and medical leave provisions.
The practical effect is to raise the small-employer exemption threshold from fewer than 10 employees to fewer than 25 employees, reducing the number of businesses required to participate in the state’s paid leave program. The bill also clarifies that a client company using a professional employer organization is treated as the employer for purposes of the chapter. The amendment would change Title 19 of the Delaware Code and narrow the scope of employers covered by the Family and Medical Leave Insurance Program.
Impact
HB179 would amend Title 19, section 3701 of the Delaware Code, altering the statutory definition of “employer” under Delaware’s Family and Medical Leave Insurance Program. The main legal impact is to exempt businesses with fewer than 25 employees from the program, rather than only those with fewer than 10 employees, thereby limiting which employers must provide or participate in paid family, caregiving, and medical leave benefits. It would also continue to treat employer-client companies in professional employer organization arrangements as the relevant employer for coverage purposes.
Sentiment
Based on the bill text and the absence of recorded committee transcripts or votes in the provided materials, the available sentiment appears generally pro-business and focused on reducing regulatory obligations for smaller employers. The sponsor lineup suggests support from legislators likely aligned with easing compliance burdens on small businesses. No recorded floor debate, committee testimony, or vote history is included here to show broader support or opposition.
Contention
The likely point of contention is the size threshold for coverage. Supporters would view the increase to 25 employees as a way to protect smaller businesses from the costs and administrative burden of the leave program, while opponents may argue it weakens employee access to paid family and medical leave by excluding more workers from coverage. Another possible issue is the treatment of professional employer organization client companies, which may affect how employer size is counted and who bears compliance responsibility.