By Tyler Micik

The General Assembly returned to session this week after a two-week break. Two bills of note, which the Chamber opposes, were released from committee:

Senate Bill 51, known as the polystyrene bill, was released from House Health & Human Development Committee. The bill now moves to the House for a full vote. If passed, the Act would prohibit food establishments from providing consumers with ready-to-eat food or beverages in polystyrene foam containers or with single-service plastic coffee stirrers, cocktail picks, or sandwich picks. It also prohibits food establishments from providing single-service plastic straws, unless requested by a consumer.

Some republican members of the House of Representatives expressed support for an amendment to make the bill applicable to fire companies, health-care providers, nonprofit organizations, and others who are currently exempted from the bill. Their reasoning for the amendment is that the law, if passed, should be applied equally to all.

The State Chamber opposes the legislation. Businesses of all sizes recognize the need to use more eco-friendly products, and many businesses are already taking steps to do so because they see it as a benefit to the environment and communities they serve, and some of their customers prefer it. Forcing businesses to switch to products not made of polystyrene, could present challenges for some because such products are often more expensive and in turn could cost consumers more.

Lastly, House Bill 127 was released from the Housing Committee in the House and now heads to the full House for a vote. The bill enables each county to establish a fire protection fee and the money collected would go to support fire companies. The decision on whether to impose the fee would be up to each county individually, and the bill doesn’t contain any language regarding a specific amount or limit on the fee a county could charge. Additionally, the fee would apply to all businesses, including nonprofits and universities and grants the county the authority to establish penalties for failure to pay the fee. The State Chamber strongly opposes the bill due to the vast scope of businesses it will impact as well as the broad and ambiguous authority it gives each county to impose and collect the fee. 

By Kelly Basile

​It all comes down to relationships. Building real connections is the key to progress—and that is done when we sit down together and listen. This is not a new concept, but it can be intimidating if you don’t know where to start.
 
I loved this latest conversation on the State Chamber’s podcast so much that when I heard it back this week, I found myself taking notes—even though I was the moderator of the original conversation! This exchange between myself, Senator Sarah McBride and Verna Hensley of Easterseals Delaware & Maryland’s Eastern Shore was so organic and stimulating, that I decided to write down and share my key takeaways:
 
BUILD RELATIONSHIPS BEFORE YOU NEED SOMETHING
Don’t wait until you have an ask to develop a relationship. Those initial touches (invitations to events like a ribbon cutting, coffee meetings, attending their constituent meeting, etc.) become the basis of the relationship. And remember that policymakers are people too. Something as simple as sending a note—a quick text, email, or comment on social media—shows you’re paying attention to what they’re doing and appreciate their work, and it can go a long way.
 
GET TO KNOW POLICYMAKERS IN AND OUTSIDE YOUR DISTRICT
Remember that the policies worked on at Legislative Hall don’t just impact the district you live or work in, they impact the entire state. Getting to know the legislators who represent where you live and work is incredibly important. But so is building relationships with the policymakers who sit on the committee related to the topic you care about—health care, transportation, environment, veterans’ affairs, and more. Do not limit yourself to a relationship with one or two people, there are 62 members of the General Assembly who can be your advocate.
 
FIND THE THINGS YOU BOTH CAN AGREE ON
Quoting Senator McBride here: Remember we can disagree agreeably. There are many things two parties can still agree on, and identifying what those things are is how you build a base level of trust. That preexisting relationship allows you to navigate through tougher conversations. And it’s so important to have more than one opinion and ways of thinking respectively at the table because that is how real and good work gets done.
 
BALANCE FACTS AND DATA WITH EMPATHY AND COMPASSION
The power of storytelling is real. As Verna so eloquently explains in the episode, if you want to have a lasting impact, the relationships you form will help legislators see a face when they think of an issue. Yes, data is important when making a point and showing the significance of a topic, but empathy and compassion allow for people to truly connect.
 
Give this episode of Conversations with Kelly a listen. It may inspire you, like it did for me. You can play an active role in shaping the future of Delaware. When we have conversations and learn from each other, it results in not only better policy but a better path to progress. 

LISTEN TO THE EPISODE:

WATCH THE EPISODE:

By Tyler Micik

Today wraps up the final week before the General Assembly goes on break for two weeks, returning on April 25th.

Two bills of importance, House Bills 102 and 104, passed the House and now move to the Senate for debate. The bills are part of a larger package of four bills, sponsored by Representative Bush, which are aimed at improving and quickening the permitting process for economic development projects in Delaware.

HB 102 expedites the issuance of temporary entrance permits for commercial and economic development projects. HB 104 accelerates the process for economic development projects in the State of Delaware with some exemptions from the PLUS process. A project located in Investment Level 1 or 2 under the Strategies for State Policies and Spending that is consistent with local zoning and any local comprehensive plan that will create full-time jobs is exempt from the pre-application process unless required by the local government or requested by the applicant.

According to the KPMG report released in 2019, Analysis of Delaware Permit Competitiveness, the state’s PLUS process adds approximately three months to the permitting process. This report was commissioned by the Ready in 6 Coalition--of which the Delaware State Chamber is a member--to identify strategies like this to streamline the permitting process in a way that doesn’t comprise public health or safety. The report concluded that concludes that Delaware has an opportunity to be more competitive if its permitting processes were strengthened through streamlined communication between state agencies, greater transparency and cost predictability, and a fast-track approval program for high-priority projects, among other recommendations.

The other two bills in the package--House Bills 101 and 103 have been introduced and await consideration in the House Economic Development/Banking/Insurance & Commerce Committee.

The State Chamber supports all four bills because they are a crucial step in strengthening Delaware's competitiveness when it comes to attracting economic development projects and creating good jobs.

By Tyler Micik

​​Today wraps up a busy week in Dover. Of note was the Senate’s passage of House Bill 1 (HB1) and House Bill 2 (HB2), legalization of recreational marijuana. Both bills now move to Governor Carney for signature.

The Governor vetoed the bill last year and it’s uncertain whether he will again. If the Governor were to veto the bill, it’s likely the General Assembly would have the required number of votes to override his decision. A veto can be overridden with a three-fifths majority vote in both chambers, meaning the General Assembly would need 13 votes in the Senate and 25 in the House in favor of the legislation to override a veto. HB1 passed the Senate by a vote of 16 to 4 and in the House by 28 to 13. HB2 passed the Senate by a vote of 15 to 5 and the House by 27 to 13. Both bills already received several votes over the three-fifths needed in both chambers to override a potential veto—assuming those in favor don’t switch their vote in response to the Governor's decision. It’s also possible the Governor could take no action; in which case the bill would still become law.

So far, 21 states—along with Washington, D.C. and Guam--have legalized recreational marijuana. Should Delaware become the 22nd state, next steps will be for the state to stand up the structure laid out in the legislation to regulate the new industry. HB2, specifically, establishes a marijuana commissioner position under the Department of Alcohol and Tobacco Enforcement, which would also be expanded to create an Office of the Marijuana Commissioner and Appeals Commission.

Today, the State Chamber was glad to see the package of four bills related to Ready in 6 were introduced. They are House Bill 101, 102, 103, and 104. The State Chamber supports these bills because they are an important part of the Ready in 6 initiative and a crucial step in improving  and speeding up the permitting process for economic development projects in Delaware. All four bills have been assigned to House Economic Development/Banking/Insurance & Commerce Committee. HB102 and HB104 have been placed on the committee’s agenda for Wednesday, April 5th at 12pm.

Senate Bill 51, known as the polystyrene bill, saw movement this week as well. The Act prohibits food establishments from providing consumers with ready-to-eat food or beverages in polystyrene foam containers or with single-service plastic coffee stirrers, cocktail picks, or sandwich picks. It also prohibits food establishments from providing single-service plastic straws, unless requested by a consumer. The bill was released from the Senate Environment, Energy, & Transportation Committee on Wednesday and is now on the senate ready list. The State Chamber testified in opposition to the bill.

The State Chamber is engaged in conversations and continues to follow other legislation such as the Climate Change Solutions Act and Data Privacy Bill—both of which have yet to be reintroduced this session, but we’ve received draft copies of the bills. If you have any comments or questions about the bills the State Chamber is following, please email me at tmicik@dscc.com. 

By Tyler Micik

​Today wraps up a light week in Dover when it comes to legislation the State Chamber is following. House Bill 1 & House Bill 2, legalization of recreational marijuana, were released from Senate committee. Both bills have been placed on the Senate ready list, making recreational marijuana in Delaware one step closer to passage. To date, twenty-one states and D.C. have legalized recreational marijuana. We thank Representative Osienski for engaging in conversation with us, listening to our concerns, and adding language into the bill that gives businesses the flexibility to keep and maintain their policies pertaining to drugs and alcohol. You can view a copy of the amendment here.

Next week the General Assembly is out of session for Bond break. They’ll return to session on Tuesday, March 28, which is the date of our annual Manufacturing and Policy Conference. You can learn more about and register for the event here.
 
As the General Assembly continues to introduce legislation important to you, make sure you have a copy of our 2023-2024 Legislative Roster. Here you will find names and contact information of members of the Delaware General Assembly, the Congressional delegation, and state and local government leaders. Also included are listings of Senate and House committees and their members, district maps, seating charts, voter registration information, and more. New this year, you can now access the roster at the touch of your fingertips via the State Chamber’s mobile app. Click here to learn more and order yours.

By Tyler Micik

​The Delaware General Assembly returned to session on Tuesday after a five-week break. Of note this week:

SB58: Removal of Copay Requirements for Delaware Families In Need – Provides financial support to Delaware families seeking childcare by removing copays for Delaware families earning up to 200% of the federal poverty level and reimburses Purchase of Care (POC) providers for 15 absent days per child per month. This bill may help employers attract new workers and retain current employees who may be faced with the choice of working or staying home with their children. It’s also a benefit to early childcare centers in that it will increase the number of paid absent days for POC recipients which in turn could incentivize more early childhood providers to accept POC children. Increasing the number of paid absent days will go a long way to helping early childhood providers maintain financial stability within their centers.

State Chamber Position: Support
Status: Released from Senate Health & Social Services Committee and assigned to Senate Finance

SB59: Act to Establish a Statewide Rate of Purchase of Care for Child Care Providers – Directs the Department of Health and Social Services to pay a statewide rate to all childcare providers that is aligned with the New Castle County rate (as determined by the 2021 Delaware Local Child Care Market Rate Survey) through existing program funds. Childcare providers are struggling to find and attract talent because they are unable to compete for workers due to funding limits. Kent and Sussex County childcare programs currently receive 40% less than those in New Castle County – while they face the same costs for staff and supplies.  

State Chamber Position: Support
Status: Released from Senate Health & Social Services Committee and assigned to Senate Finance

SB43: Display of Human Trafficking Public Awareness Signs - This Act adds additional State facilities and categories of establishments to § 787 of Title 11, which would be required to display public awareness signs about human trafficking. Such facilities and categories include state service centers, wellness centers, residential childcare facilities, transitional and independent living service providers for youth aging out of foster care, shelters for victims of domestic violence or sexual assault or individuals experiencing homelessness or food insecurity, hotels, convenience stores along a major highway, gas stations along a major highway, casinos, restaurants with liquor licenses, poultry processing plants, bus or train stations, bars, massage establishments, and shopping malls. The Act includes specific locations on the premises where establishments must display a public awareness sign and adjusts the process by which the Delaware Anti-Trafficking Action Council may designate establishments required to display public awareness signs. Additionally, it allows the Council to promulgate regulations to designate other categories of establishments that must display public awareness signs, designate a specific location on the premises for a category of establishments where a public awareness sign must be displayed, and change requirements for what must be included in a “public awareness sign”, as defined in this Act. It also establishes an enforcement process, including the requirement that establishments will receive a warning before any civil penalties are assessed. If an establishment does not correct the noncompliance, its owner is subject to a civil penalty of up to $500 for their first offense and up to $2,500 their second.
 
State Chamber Position: Opposed
Status: Released from Senate Judiciary Committee and assigned to Senate Finance

HB41: Digital Right to Repair - Currently when an electronic product such as a phone or electronic game breaks, it is only allowed to be repaired by the manufacturer. Parts are not available whether you are a consumer or a local repair shop. This Act requires the manufacturer to make parts, documentation, tools, and updates available on fair and reasonable terms.

State Chamber Position: Engaged and gathering feedback
Status: Released from House Economic Development/Banking/Insurance & Commerce Committee and moves to the House for a full vote

HB1 & HB2: Legalization of Recreational Marijuana – Would legalize and tax recreational marijuana in the same manner as alcohol. HB1 removes all penalties for possession of one ounce or less of marijuana and HB2 is the “regulation and tax” piece. The State Chamber thanks Representative Osienski for taking our concerns into consideration and incorporating language into the bill that gives employers the flexibility to keep and maintain their policies regarding drugs and alcohol. You can view a copy of the amendment here.

State Chamber Position: Neutral based on amended language
Status: Both bills passed the House and have been assigned to committee in the Senate

We expect to see movement on more bills next week such as SB51, known as the Polystyrene bill, and we will continue to keep our members updated as these proposals move forward. As always, if you have feedback on any of the bills mentioned above or others, please contact me at tmicik@dscc.com. We want to hear from you! 

By Tyler Micik

​In late January, Chris Counihan, Director, Division of Paid Leave for the Delaware Department of Labor (DDOL), shared the draft regulations for Delaware’s new Paid Family Medical Leave insurance program. Chris asked the State Chamber, among others, to submit feedback to the DDOL on the regulations by February 7 so the Department could have time to review everyone’s suggestions and submit a revised version of the regulations to the Office of the Registrar by February 15.

The State Chamber asked Timothy Holly, Esq., a partner in the labor and employment law department of Connolly Gallagher, LLP, to review the regulations and help formulate a response to the 42 pages of draft regulations on behalf of DSCC. These regulations are complicated for many, especially smaller businesses who are trying to navigate both Delaware and federal laws like the Family and Medical Leave Act (FMLA). It will to take time for employers to sort out what this new law means and how it will be implemented in real time and administered.

Time is of the essence. Delaware employers have a deadline of January 1, 2024, to take action if they want to pursue the opportunity to opt out of Delaware’s public plan and perhaps also potentially reduce the amount of parental leave they will be required to provide, though details for that are unclear. Employers must also be prepared to take action as it pertains to providing various notices to employees including regarding the amount of “contribution” that will be passed ontito employees through payroll deduction, particularly since many employees likely are unaware of this consequence to them from the new law (i.e. less pay in their pocket).

In February, Holly submitted a letter to the DDOL on behalf of the State Chamber which presents high-level comments and provides regulation-specific observations, requests, and/or concerns. Some examples from the letter include:

• “Provide more detail and clarity regarding options such as "private plans" and "grandfathered" plans. Employers should be given VERY clear options; and easy-to-use opportunity for employers to try but fail at grandfathering but still have time to pursue other options, rather than going directly into the fund. Relatedly, the regulations do not provide sufficient clarity regarding options or time to pursue them. The lack of sufficient options for employers to continue their own, generous leave programs with their employees, which they have shouldered the burden of for many years despite no requirement to do so (which includes many small employers), frustrates many, as does the unclear and seemingly deficient options and process to opt-out of the State program.”
• “Many employers have done away with "paid time off' programs that distinguish between "vacation" and "sick." Many allow a generous amount of PTO. Better explain how such PTO will be evaluated for purposes of DDOL making determinations about grandfathering.”​
• The in-state versus out-of-state hours issue is going to prove to be an extreme challenge for employers. It is going to be an extreme challenge to determine what is meant to be counted as "work" hours for all counting purposes (i.e., so that overpayment is not made on account of considering wages earned outside of Delaware, and so benefits are not overpaid based on wages earned outside of Delaware). Consider overnight travel, donning/doffing, wait-time, simply working from home, working while traveling between states, etc. Provide better explanation and guidance. Employers should not be put at risk on such issues that require judgment calls. Ample new liability is being created while the difficult task of administering eligibility and pay determinations is being forced onto the shoulders of employers, e.g., rather than the DOOL taking on the responsibility. Some method of DDOL determining when and what hours should be considered (without employer liability for the judgment calls) should be created.”

You can view the State Chamber’s full response to the draft regulations here. The State Chamber hopes this feedback, in addition to other’s recommendations, can be used to help the DDOL produce regulations that will be informative, helpful, and less burdensome on businesses as this new law is learned, implemented, and administered.

Although the February deadline has passed, the Department is still seeking feedback. It’s important for businesses to stay engaged throughout this process and read carefully through the draft and final regulations. While the State Chamber’s letter may be used by others to help tease out some thoughts and questions, others should continue to formulate their own comments, even if it’s only on a particular section of the draft regulations like grandfathering of private plans and share those comments with the DDOL and legislators. 

By Tyler Micik

​The 152nd General Assembly gaveled into session last month and several bills were introduced that are noteworthy.  

HB1 & HB2: Legalization of Recreational Marijuana
This is the return of Rep. Osienski's two-part approach to legalize and tax recreational marijuana in the same manner as alcohol. HB1 removes all penalties for possession of one ounce or less of marijuana and HB2 is the “regulation and tax” piece. The State Chamber testified in opposition to HB2 as written when the bill was heard in the House Revenue and Finance Committee and requested the agreed upon language relating to the impact of legalization and regulation on employers and employees from last year be added back into the bill. Some companies have federal contracts, and the federal government insists on a zero-tolerance policy. Similarly, regardless of whether companies have federal contracts, they simply want the ability to maintain their own policies without state laws or regulations superseding company policy. The amendment gives employers the flexibility to keep and maintain their policies regarding drugs and alcohol. Osienski agreed to add the language back into the bill after the hearing. Both bills were released from Committee.

State Chamber Position: Neutral based on amended language
Status: HB1 now moves to the House for a full vote and HB2 has been assigned to House Appropriations

SB35: Bond and Capital Improvements (Mini-Bond)
Controversy over the bill ensued because the bill's epilogue language called for the creation of a pilot program under the Office of Management and Budget (OMB) and DelDOT, which mandates project labor agreements (PLAs) on state funded construction projects. The bill targets six projects: Hodgson school; DNREC Lab; Hospital for the Chronically Ill; OMB Food Building; and two DelDOT projects which have not been identified yet. All four OMB projects contain PLAs, while only one project (Hodgson) included a Disadvantaged Business Enterprise (DBE) requirement.

The State Chamber worked with the Associated Builders and Contractors (ABC) and the Delaware Black Chamber of Commerce (DEBCC) to push for several amendments such as removing the PLA requirements, placing DBE requirements on all projects, and requiring that all projects be completed by bona fide legal residents of the State to ensure Delawareans were the ones benefiting from the projects but all amendments were defeated.

State Chamber Position: Opposed
Status: Signed by the Governor on January 26, 2023

Other bills that saw movement:

HB49: Unemployment Benefits and Employer Assessments - Provides post-pandemic related relief to both claimants receiving unemployment benefits and employers who are assessed unemployment taxes. The bill increases the maximum weekly benefit amount payable to claimants seeking unemployment compensation benefits from the Delaware Department of Labor, Division of Unemployment Insurance from $400 per week to $450 per week. The funds necessary to pay the increased weekly benefit amounts will be paid from the Unemployment Trust Fund.

State Chamber Position: Neutral
Status: Signed by the Governor on January 26, 2023

HB36: Realty Transfer Tax - Decreases by 1% the rate of the realty transfer tax to be received by the State, thereby returning it to the rate that was applicable prior to August 1, 2017. It also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Act will apply to documents recorded and permits applied for after the effective date of the Act.

State Chamber Position: Support
Status: Released from House Revenue & Finance Committee on 1/24 and assigned to House Appropriations

HB41: Digital Right to Repair - Currently when an electronic product such as a phone or electronic game breaks, it is only allowed to be repaired by the manufacturer. Parts are not available whether you are a consumer or a local repair shop. This Act requires the manufacturer to make parts, documentation, tools, and updates available on fair and reasonable terms.

State Chamber Position: Engaged and gathering feedback
Status: Assigned to Economic Development/Banking/Insurance & Commerce Committee

HB55: Homeless Bill of Rights - Ensures that all individuals, regardless of housing status, have equal opportunity to live in decent, safe, sanitary, and healthful accommodations and enjoy equal opportunities. It sets forth the rights of individuals experiencing homelessness and creates a process by which the State Human and Civil Rights Commission and the Division of Human Relations may accept and investigate complaints of discriminatory treatment, attempt conciliation, and refer enforcement actions to the Department of Justice where necessary.

State Chamber Position: Engaged and gathering feedback
Status: Assigned to House Judiciary Committee

In addition to these bills there are several environmental proposals floating around, which the State Chamber is monitoring and engaging in conversations with our members. It’s important for all businesses, large and small, and their employees to be aware of these proposals and start getting involved in the conversation because they will have lasting impacts for all Delawareans. These proposals include:

Delaware Climate Change Solutions Act: Commonly known last session as SB305, this places the Governor's Climate Action plan into law and regulation. A bill has not been introduced yet this year, but one is expected soon. Two sets of recommendations have been sent to DNREC Secretary Garvin, Sen. Hansen, and Rep. Heffernan on behalf of the State Chamber, New Castle County Chamber, and our members.

Zero Emissions Vehicles: In March 2022, Governor Carney directed DNREC to promulgate regulations to implement California’s Advanced Clean Car II standards – joining 13 other states surrendering their transportation policy autonomy to CA. Although Delaware meets EPA standards in all three counites, it does not meet CA standards in New Castle County (per monitoring station in Bucks County, PA). Given this, DNREC plans to adopt regulations that by 2035, all new passenger cars, trucks, and SUVs sold in Delaware will be required to be zero-emission vehicles (ZEVs). So, what does this mean? It appears that beginning in Model Year 2026 (Fall 2025), 35% of all new cars sold in Delaware will need to be zero-emissions. By Fall 2031, over three-quarters of all cars sold will be required to be ZEVs, with the sale of new gasoline and diesel-powered vehicles banned by late 2034.

New Castle County 2050 Economic Development Plan: New Castle County Department of Land Use is holding meetings to seek public input regarding the 2050 NCC Comprehensive Plan. According to the County, the objective is “to develop policies and programs to create an economic environment that supports a range of industries while ensuring policy is based on leveraging equitable and robust outcomes that limit or mitigate negative community impacts."

The State Chamber is looking for feedback from members on how any of these proposals may impact you. Please direct feedback to tmicik@dscc.com.

The General Assembly is in recess through the month of February for Joint Finance Committee meetings. They will return on Tuesday, March 7. This is a good time to engage with legislators by phone, Zoom, or schedule a visit to your office. The State Chamber can help. Contact Tyler Micik for assistance. 

By Michael J. Quaranta

The new normal is not the old normal or whatever that was! This year started off with a new variant of COVID-19—Omicron—and the postponement of our Annual Dinner. Supply chain woes slowly began to resolve themselves but still persist. International disruptions were experienced as a direct result of the Russian invasion of the Ukraine and created roiling energy markets and more. The Federal Reserve Bank raised the federal funds rate multiple times to spell inflation concerns, while borrowing costs surged for consumers and businesses alike.

These and other challenges served as a backdrop for State Chamber members who continue to wrestle with workforce scarcity. As Baby Boomers continue to reach retirement eligibility at a pace of 10,000 per day—a rate that will not relent until 2029—employers face enormous pressure to fill jobs. Without the immediate relief that could come from a strategic immigration policy; changes to Social Security wage laws that restrict
the income of older workers; or elected leaders doing more to meet the emergency of job vacancies in industries like health care, teaching, technology, and the building trades, technology will march on and idle more of us without in-demand skills.

If nothing else, 2022 proved that we have work to do and precious little time to waste. Workforce remains a top priority for the business community, as does the speed with which permitting decisions are made. We need policymakers to be a partner in solving these challenges and recognize that business cycles are moving faster than ever. We also need to recognize that new laws and regulations, while created separately, have an accumulated effect on businesses and that oftentimes is a fact that goes under appreciated.

Now more than ever it is important for each of us to invite elected officials into your place of business—be it an office, store, factory, or school—and help them understand what you do, how you do it, the supplies you
need to accomplish your end-product, who your customers are, and how incredibly valuable your employees are to your success. 

Policymakers are called upon to make decisions on a wide range of issues every day, and there is no possible way they can fully appreciate the impacts the choices they make will have on you and your colleagues. That’s why it is so important for you to establish those relationships early and continue sharing updates as your priorities change, customers grow, or supplies run dry. They cannot make good decisions with limited information. This is why you are such a critical link to better policy outcomes.

Politics in Delaware are changing, and it follows then that the decisions made will be different too. Your participation and involvement will help shape the outcome in the new year and beyond. I’m certain of that.

By Tyler Micik

The State Chamber’s Employer Advocacy Committee met in late October for their quarterly meeting. The committee was joined by Chris Counihan, Delaware Department of Labor’s (DOL) Paid Family and Medical Leave implementation manager. Counihan joined the Department in August with the task of setting up the new insurance program, along with a new division within the DOL to administer it. The new division will add between 35 to 60 employees to the Department, and they expect to be fully staffed by 2025.

Counihan discussed a few details within the Paid Family and Medical Leave Program—who is covered, when
the program begins, and when benefits are available. Some important dates for employers to be aware of:

• January 1, 2024 – Final deadline for all Delaware employers to provide notice they have opted out of Delaware’s public plan. Employers with 10 or more employees are automatically enrolled unless you opt out and provide proof of private or self-insurance.
• January 1, 2025 – Payroll taxes start being collected. Contribution is 0.8 percent and is split between employer and employee.
• January 1, 2026 – Claims start being accepted and paid. 

Additionally, Counihan asked committee members for ideas on how the program could be set up, so the
system is simple and smooth for both employers and their employees to use.

One topic considered was eliminating double entry of information. In addition to passing the Healthy Delaware Families Act (PFML), the General Assembly also passed Delaware EARNS, which establishes a State-run voluntary employee IRA savings program. Both programs start the same day—January 1, 2025. Similarly, both require the creation of two new programs within two separate departments, one within the DOL and other in the State Treasurer’s office. Considering this, our members suggested creating a “one stop” system where employers can go to input information once for both programs.

Small businesses have limited resources and creating a system that gives employers the ability to input
information once for a variety of programs, such as PFML and EARNS, is important because it streamlines the process and saves employers valuable time and resources.

Taking the committee’s suggestion into consideration, after the meeting, Counihan held a preliminary meeting with the State Treasurer’s office to create a single data entry point for both programs. Additionally, they will be extending this initiative so that it becomes part of the DOL’s Unemployment Insurance and Workers Comp modernization efforts. There are also conversations on looping in the Department of Revenue so that all these programs and taxes are submitted through one entry point.

If you would like to participate in the Employer Advocacy Committee, please contact me at tmicik@dscc.com.