What Delaware Unemployment Benefits Cover

Delaware's unemployment insurance program is run by the Delaware Department of Labor, Division of Unemployment Insurance. The program pays a portion of your lost wages if you lose your job through no fault of your own — meaning you were laid off, your position was eliminated, or your employer cut your hours significantly. The program does not cover quitting, being fired for misconduct, or leaving work voluntarily.

Delaware pays benefits in weekly amounts that depend on your earnings history. The state calculates your benefit amount based on your highest quarter of earnings in the past year, using a formula that replaces roughly 50 percent of your average weekly wage. The maximum weekly benefit amount changes each year; you can find the current maximum on the Division of Unemployment Insurance website or by calling their claims line.

Benefits typically last up to 26 weeks in a standard benefit year, though during periods of high unemployment the state may offer extended benefits that add additional weeks. You must file a new claim each benefit year (which runs from July through June), even if you were receiving benefits the previous year.

Key Takeaways

  • You must file your claim with the Delaware Department of Labor within two weeks of losing your job, or you may lose benefits for that week.
  • Delaware requires you to actively search for work and report your job search efforts when you file your weekly claim.
  • You can file your initial claim and weekly claims online through the state's website, by phone, or in person at a Division office.
  • If your employer contests your claim or you are denied, you have the right to request a hearing before an administrative judge.
  • Delaware taxes unemployment benefits as income on your federal tax return, though the state does not withhold taxes automatically.

How to File Your Initial Claim in Delaware

Your first step is to file an initial claim with the Division of Unemployment Insurance. You can do this online at the state's website, by phone at the claims line, or by visiting a Division office in person. Filing online is usually the fastest option and allows you to upload documents when ready.

When you file, you will need to provide your Social Security number, driver's license or state ID number, your most recent employer's name and address, the date you stopped working, and the reason you are no longer employed. Have your most recent pay stub or W-2 available, as it helps the Division verify your earnings. If you were laid off, have any separation notice or letter from your employer.

The Division will contact your employer to verify the reason for separation. Your employer may agree that you were laid off, or they may contest the claim and say you were fired for misconduct or quit. If there is a disagreement, the Division will investigate and make a information. This process usually takes one to three weeks.

Weekly Claims and Job Search Requirements

Once your initial claim is approved, you must file a weekly claim every week you want to receive benefits. You can file online, by phone, or by mail. Most people file online because it is when ready and creates a record. You must file by the important date each week, which is usually Sunday night or Monday morning depending on the week.

Each week, Delaware requires you to report that you have actively searched for work. You must list at least three job search contacts per week — this means explore for jobs, attending interviews, contacting employers, or using a job search service. You do not have to be hired; you just have to show you looked. Keep records of where you applied, who you spoke to, and the date, because the Division may ask you to provide proof.

You must also report any income you earned that week, any job offers you received, and whether you worked. If you earned any money, even a small amount, the Division will reduce your benefit payment by a portion of that income. If you worked a full week, you may not receive a benefit payment for that week.

When the Division Denies Your Claim

The Division may deny your claim if your employer proves you were fired for willful misconduct, if you quit without good cause, or if you do not meet the earnings requirements. Willful misconduct means you deliberately broke a rule or refused to follow instructions — not straightforward making a mistake or performing poorly. Quitting without good cause means you left without a reason the Division considers valid, such as unsafe working conditions, wage theft, or harassment.

To meet Delaware's earnings requirement, you must have earned at least $3,200 in your highest quarter in the past year, or you must have earned at least $3,200 total in the past year. These amounts may change annually. If you do not meet the earnings requirement, you are ineligible regardless of the reason you lost your job.

If the Division denies your claim, they will send you a written notice explaining the reason. You have 30 days from the date of that notice to request a hearing. At the hearing, an administrative judge will listen to your side of the story and your employer's side, then make a decision. You can represent yourself or bring a representative. If you disagree with the judge's decision, you can appeal to the Delaware Unemployment Insurance Appeal Board.

Special Situations: Part-Time Work, Reduced Hours, and Self-Employment

If you were working part-time when you lost your job, you can still file for benefits as long as you meet the earnings requirement. The Division will calculate your benefit amount based on your part-time earnings. If your employer reduced your hours significantly but did not lay you off, you may be able to file for partial unemployment benefits, which pay the difference between your reduced pay and your full-time wage.

If you are self-employed or an independent contractor, you generally cannot file for regular unemployment benefits in Delaware. However, during certain federal emergency periods, self-employed workers may be covered under a special program. Check the Division's website or call to ask whether you are covered in the current period.

If you are receiving workers' compensation benefits for a work injury, you cannot receive unemployment benefits at the same time for the same period. If you are receiving disability benefits or retirement benefits, you may still be able to receive unemployment benefits, but the amount may be reduced. Contact the Division to discuss your specific situation.

Tax Withholding and Reporting Requirements

Delaware does not automatically withhold federal income tax from your unemployment benefit payments. However, unemployment benefits are taxable income on your federal tax return. You can request that the Division withhold 10 percent of your payment for federal taxes, or you can pay taxes when you file your return. The Division will send you a Form 1099-G in January showing how much you received in the previous year.

Delaware also does not have a state income tax, so you do not owe state unemployment tax on your benefits. However, you may owe taxes in another state if you worked there during the year or if you moved to another state while receiving benefits.

Frequently Asked Questions

How long does it take to get my first payment?

If your claim is approved without any issues, you should receive your first payment within two to three weeks of filing. If your employer contests the claim, it may take four to six weeks while the Division investigates. The Division does not backdate payments to the week you filed; payments start from the week your claim is approved.

What if I find a job while receiving benefits?

You must report your new job on your weekly claim. If you work a full week, you will not receive a benefit payment for that week. If you work part of the week, your payment will be reduced. Once you have worked enough weeks to earn back your benefit amount, your claim ends. You can file a new claim in the next benefit year if you lose that job.

Can I receive benefits if I am taking classes or going to school?

You can receive benefits while in school as long as your classes do not prevent you from working full-time and actively searching for work. If you are in a full-time training program, you may not be able to receive regular benefits, but you might be covered under a work-training program. Contact the Division to discuss your situation.

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 keep filing your weekly claims and meeting the job search requirement. However, if you move and find work in another state, you must report it. Some states have agreements with Delaware about how benefits are handled when you move; contact the Division for details.

Can I appeal a decision if I disagree with it?

Yes. If the Division denies your claim or reduces your benefits, you have 30 days to request a hearing. An administrative judge will review your case and make a new decision. If you disagree with the judge's decision, you can appeal to the Delaware Unemployment Insurance Appeal Board within 30 days of that decision.