Here’s what’s new for businesses as we approach 2025: a delay in the Department of Labor’s overtime rule and the launch of Delaware’s new Paid Leave Program.
Overtime Rule Delay: What’s Next?
A recent federal court ruling has temporarily delayed the implementation of the U.S. Department of Labor’s (DOL) proposed changes to the overtime rule. These changes would have raised the salary threshold for employees to qualify for overtime pay, impacting many businesses nationwide. The court vacated the rule, citing concerns over the methodology used in determining the new salary thresholds.
For now, the overtime rule remains in limbo. While the DOL may revise or reinstate the rule in the future, we recommend that employers keep an eye on further developments. In the meantime, it’s crucial for business owners and HR professionals to continue monitoring their exempt employees’ compensation to ensure compliance with existing regulations.
Delaware’s Paid Leave Program
Starting January 1, 2025, Delaware will join the ranks of states offering paid family and medical leave for workers with its own state-run Paid Leave Program. This new legislation mandates that businesses with 10 or more employees provide employees with paid leave benefits. This includes paid parental leave, as well as time off for medical reasons, family caregiving, and addressing the impact of a family member’s overseas military deployment.
Some key points about the Delaware Paid Leave Program:
- Employers with 10 or more employees must provide paid parental leave benefits, and employers with 25 or more employees must provide full coverage for parental, medical, and family caregiving leaves.
- The program pays eligible employees 80% of their weekly earnings, up to $900 per week.
- Employers can choose to self-insure or use private plans, as long as the benefits meet or exceed the state program.
As businesses prepare to comply with this new mandate, they should be aware of the potential penalties for non-compliance. Registering with the state’s administrative system, Delaware LaborFirst, will be required, and contributions will be due starting January 1, 2025. For more information on the program and to get started, visit the Delaware Department of Labor website.
Count on Canon Capital Payroll
As your trusted payroll partner, we’re here to help you navigate these changes and ensure compliance. We will continue to monitor both the federal overtime rule and Delaware Paid Leave to provide you with the latest updates and guidance.