Delaware’s paid family medical leave begins claims payments as DOL seeks staff and tech improvements
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Summary
Department of Labor officials told the Joint Finance Committee paid family medical leave is operational, with early claims and first payments out; the department reported collection of employer contributions and expects roughly $55 million in contributions after uploads are completed. DOL described ongoing work on UI modernization and workforce programs.
The Department of Labor told the Joint Finance Committee that Delaware’s paid family medical leave program is now operational and moving from claims intake to payments.
Chris Coonahan, director of the Division of Paid Leave, said the program began collecting contributions in January 2025 and began accepting claims on Jan. 1. "We just, sent out our first claims to be paid, on yesterday," Coonahan told the committee, and confirmed that initial payments were being released in the week following the hearing. He said about 1,240 claims had been started in the program’s first month, with roughly 42% parental leave, 44.5% medical leave and 13% family‑caregiver claims; many initial entries were duplicates or abandoned applications while users learned the system.
Coonahan reported that the fund has received over $44 million in posted contributions and expects additional uploads (including about $6.5 million in delayed payroll company uploads) to bring the total closer to $55 million. The program is funded through an appropriated special fund and the FY27 ask would add 10 ASF FTEs and $6.54 million in spending authority to support implementation and operations; DOL said these positions are funded with contributions and do not require general funds.
On unemployment insurance, Director Marie Cameron said UI processed about 27,000 benefit claims in FY25, and the trust fund balance stands near $270 million. The division has been addressing a backlog and is advancing tax modernization and an improved claimant portal to provide applicants with status on initial claims. Cameron said the tax modernization procurement is under way, with a projected modernization completion later in 2026.
Committee members pressed DOL on the adequacy of seed funding for the paid‑leave program and the actuarial study underway. Coonahan said an actuarial study was commissioned and data gathering was in progress; the study is intended to test rate adequacy and will be made available to the legislature when complete. On program timelines, DOL staff said claims that were delayed by initial system defects were now being processed and, moving forward, routine claims adjudication should average roughly two weeks once employers and providers submit required documentation.
Members also asked about workforce programs, apprenticeship support and how federal grant (NSF) positions would be treated if federal funding ends; DOL said grant positions would need a future budget request for continuation in the event federal support stops. A virtual public commenter (James Bush of the Delaware Alliance for Nonprofit Advancement) urged continued investment in DOL and contract reforms to ensure provider stability for workforce services.
The committee did not approve or reject any motions in the briefing; DOL will provide follow‑up actuarial details, status of bulk contribution uploads, and progress updates on UI modernization for the committee’s review.