Delaware's unemployment insurance is run by the Department of Labor, Division of Unemployment Insurance

Delaware's unemployment insurance (UI) program is administered by the Division of Unemployment Insurance within the Department of Labor. The state operates its own program under federal guidelines set by the Social Security Act, which means Delaware sets its own wage requirements, benefit amounts, and duration rules within those federal boundaries. This matters because your may be able to access and what you receive depend on Delaware's specific rules, not a national standard.

The program is funded through employer payroll taxes, not income tax or general revenue. Employers in Delaware pay into the Unemployment Insurance Trust Fund based on their payroll and their history of laying off workers. When you file a claim, you are drawing from money that employers in your state have already paid in.

Delaware processes claims through a combination of online filing, phone intake, and mail. The state has moved most initial filing to its online portal, but you can still file by phone or mail if you cannot use the website. Processing time varies depending on how complete your process is and whether your employer contests your claim.

Key Takeaways

  • Delaware requires you to have earned at least $3,100 in your base year (the first four of the last five calendar quarters before you file) to meet the wage requirement.
  • The maximum weekly benefit in Delaware is set each year and is roughly 60 percent of the state's average weekly wage, capped at a dollar amount that changes annually.
  • You must file your claim with the Division of Unemployment Insurance online, by phone at 302-761-8085, or by mail within a reasonable time after losing your job.
  • Delaware requires you to search for work and report your job search activities if the state asks you to do so, or you may lose your benefits.
  • If your employer contests your claim, the state holds a hearing where both you and your employer can present evidence about why you were separated from the job.

Wage requirements and your base year in Delaware

To receive unemployment benefits in Delaware, you must have earned at least $3,100 in your base year. Your base year is the first four of the last five calendar quarters before the quarter in which you file your claim. For example, if you file in March 2024, your base year runs from January 2022 through December 2023.

The $3,100 requirement is a total across all four quarters—you do not need to earn it in any single quarter. However, you must have worked for a covered employer, meaning one that reports wages to Delaware's unemployment insurance system. Self-employment, cash work, and jobs with employers who do not carry UI insurance do not count toward this requirement.

If you do not meet the $3,100 threshold, you are not may be able to access for regular UI benefits. Some workers in this situation may be able to file under the Pandemic Unemployment information (PUA) program if it is active, but that program is not always available and has its own rules.

Weekly benefit amounts and how long you can receive them

Delaware calculates your weekly benefit amount based on your earnings in your base year. The state divides your total base year wages by 52 to find an average, then pays you roughly 60 percent of that amount, up to a maximum. The maximum weekly benefit amount changes each year based on the state's average weekly wage. In recent years, the maximum has been in the range of $330 to $370 per week, but you should verify the current amount on the Division of Unemployment Insurance website or by calling 302-761-8085.

The length of time you can receive benefits depends on the state's unemployment rate. Delaware uses a variable benefit duration system tied to the insured unemployment rate. In periods of low unemployment, you may receive benefits for up to 20 weeks. When unemployment rises above certain thresholds, the duration can extend to 26 weeks. The state calculates this rate monthly, so the number of weeks available to you is set when you file and does not change if conditions improve or worsen later.

You do not receive your full weekly amount if you earn wages while collecting benefits. Delaware allows you to earn up to one-third of your weekly benefit amount without losing any benefits. Earnings above that threshold reduce your benefit dollar-for-dollar.

How to file your claim and what documents you need

You can file your claim online through the Division of Unemployment Insurance portal at delaware.gov/unemployment, by phone at 302-761-8085, or by mail to the Division of Unemployment Insurance, 4425 North Market Street, Wilmington, DE 19802. Online filing is the fastest route and allows you to upload documents directly.

When you file, have the following information ready: your Social Security number, driver's license or state ID number, your most recent employer's name and address, the date you were separated from the job, and the reason for separation (laid off, quit, fired, or other). If you were fired, be prepared to explain the circumstances, because your employer will likely contest the claim and the state will need your account of what happened.

If you have worked for multiple employers in your base year, list all of them. The state will contact each employer to verify your wages and the reason you left. Bring or upload any documents that support your claim—a termination letter, pay stubs, or written communication from your employer about the separation. These documents can speed up processing and help you if your employer disputes the claim.

Work search requirements and reporting

Delaware requires you to be able and available to work and to actively search for work while you receive benefits. The state does not require you to report your job search activities every week, but it can ask you to do so at any time. If the state asks and you do not provide evidence of your search efforts, you will lose your benefits.

What counts as a work search varies. explore for jobs, contacting employers, attending job training or interviews, and registering with a job placement service all count. Passive activities like browsing job boards without explore do not. If you are unable to work due to illness, disability, or caregiving responsibilities, you may not be may be able to access for benefits during that period, even if you have weeks remaining.

If you are receiving benefits and turn down a suitable job offer, you must have a good reason or you will be disqualified. Good reasons include wages significantly below what you earned before, unsafe working conditions, or a job that conflicts with a disability or medical restriction. Turning down work straightforward because you prefer a different job is not a good reason.

Employer contests and hearings

When you file a claim, the state notifies your employer. Your employer can contest the claim by submitting a written response within a set timeframe, usually 10 to 15 days. If your employer contests, the Division of Unemployment Insurance schedules a hearing. You will receive a notice in the mail with the date, time, and instructions for participating.

Hearings are conducted by a hearing officer who is not employed by either you or your employer. Both you and your employer can present evidence and witnesses. You can represent yourself or bring an attorney or representative. The hearing is your chance to explain your side of the separation—why you were laid off, why you quit for good cause, or why you were not fired for misconduct.

After the hearing, the hearing officer issues a decision. If you disagree with the decision, you can appeal to the Unemployment Insurance Appeals Board within 20 days of the decision. The appeals process involves submitting a written brief and may include another hearing. This process can take several months, but you can continue to receive benefits while your appeal is pending if the hearing officer's decision was in your favor.

Taxes on unemployment benefits and reporting to the IRS

Unemployment benefits are taxable income to the federal government. Delaware does not tax unemployment benefits at the state level, but you will owe federal income tax on what you receive. The Division of Unemployment Insurance does not automatically withhold federal tax from your benefits, so you have two choices: request that the state withhold 10 percent of each payment, or plan to pay the tax when you file your federal return.

The state will send you a Form 1099-G in January of the following year showing the total benefits you received. You must report this amount on your federal tax return. If you do not request withholding and do not set aside money for taxes, you may owe a large amount when you file, and you could face penalties if you owe more than a certain threshold.

To request federal tax withholding, contact the Division of Unemployment Insurance or change your preference through the online portal. You can change your withholding choice at any time during your claim.

Frequently Asked Questions

What if I quit my job instead of being laid off?

You can still receive benefits if you quit for good cause. Good cause means you had a legitimate reason directly related to your job—unsafe conditions, wage theft, harassment, or a substantial change in job duties. You must have told your employer about the problem and given them a chance to fix it before you quit. If you quit without good cause, you are disqualified.

Can I receive benefits if I was fired?

You can receive benefits if you were fired, unless you were fired for misconduct. Misconduct means willful or negligent violation of your employer's reasonable rules or deliberate disregard of the employer's interests. Being fired for a single mistake, poor performance, or inability to do the job is not misconduct. Your employer will contest the claim, and a hearing officer will decide whether your conduct rises to the level of misconduct.

How long does it take to receive my first payment?

Processing time depends on how complete your process is and whether your employer contests. If everything is in order and your employer does not contest, you may receive your first payment within two to three weeks. If your employer contests, processing stops until the hearing is held and a decision is made, which can take six to eight weeks or longer.

What happens if I move out of Delaware while receiving benefits?

You can continue to receive Delaware benefits if you move to another state, as long as you remain able and available to work and continue to meet all other requirements. However, if you move to take a job in another state, you may need to file a claim in that state instead. Contact the Division of Unemployment Insurance before you move to understand how it affects your claim.

Can I receive benefits while I am in job training or school?

You can receive benefits while in approved training, but you must still be available for work and meet all other requirements. Some training programs are approved by the state, and participation in those programs does not disqualify you. Unapproved training or full-time school enrollment may make you ineligible because the state considers you unavailable for work.