Washington, D.C., December 2, 2024 – The ERISA Industry Committee (“ERIC”) today submitted public comments on proposed regulations contained in “1401 Rules Defining and Regulating the Healthy Delaware Families Act, Family and Medical Leave Insurance Program and the Division of Paid Leave” (“Proposed Rules”). The rules, issued by the Delaware Department of Labor Division of Paid Leave (“Division”), focus on the implementation and administration of the Delaware Paid Family and Medical Leave Insurance Program (“PFML Program”).
In its public comments ERIC outlined concerns about the Proposed Rules and shared alternative approaches the Division could take to improve employer compliance and enhance the operational effectiveness of the PFML Program. Namely, ERIC highlighted the inordinate amount of administrative responsibility that the Proposed Rules seek to place directly on independent employers, which similar state paid leave insurance programs do not do.
“ERIC supports the efforts of our member companies to voluntarily offer high-quality paid leave plans and advocates for federal policies to harmonize state paid leave standards. The Proposed Rules underscore why that federal clarity is desired. These rules would amplify the challenges employers face as they navigate the ever-increasing labyrinth of multistate compliance requirements,” said Dillon Clair, Director of State Advocacy. “ERIC believes a balance can be achieved and looks forward to working with the Division on final rules that are clear, easily administrable, and minimize compliance complications so employers can continue providing privately-sponsored paid leave benefits.”
In its comments ERIC urged the Division to revise and amend its Proposed Rules to:
- Avoid placing responsibility for administering PFML program benefits directly and solely on individual employers.
- Provide employers with greater opportunity to correct Act violations and delinquent contributions without facing counterproductive penalties and fees.
- Permit approved employer plans to maintain their status by limiting reapplication and reapproval requirements.
- Prevent Labor First portal information and registration requirements from dissuading employer applications for private plan approval.
- Develop simplified guidance materials explaining regulatory requirements that employers can follow, and that the state can more effectively administer.
ERIC is a national advocacy organization exclusively representing the largest employers in the United States in their capacity as sponsors of employee benefit plans for their nationwide workforces. With member companies that are leaders in every economic sector, ERIC is the voice of large employer plan sponsors on federal, state, and local public policies impacting their ability to sponsor benefit plans. ERIC member companies offer benefits to tens of millions of employees and their families, located in every state and city across the country.
The full text of ERIC’s comments can be found here.