Delaware is joining a growing list of states that require employers to automatically enroll their workers in a state-sponsored retirement savings plan, unless the employer already provides retirement benefits.

The state is taking steps to implement the new law, which Gov. John Carney signed in August. Covered employees can begin to participate and make contributions on Jan. 1, 2025.

The law establishes the Expanding Access for Retirement and Necessary Saving (EARNS) Program to allow workers to voluntarily put money in a portable Roth individual retirement account (IRA). This is a state-sponsored savings plan funded by employees, facilitated by employers and overseen by the state.

California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Oregon and Washington have similar laws on the books. Programs in Colorado and Virginia are set to start in 2023.

"Each state administers their programs a little differently, and some require employers to certify that they are in compliance," said Michael Kreps, an attorney with Groom Law Group in Washington, D.C. "Employers [in Delaware] should be on the lookout for more information as the program gets closer to going live."

New Requirements

Private employers are subject to the Delaware law's provisions if they have five or more employees, have been in business in Delaware for at least six months, and don't offer retirement benefits.

Covered employers must:

• Register with the program and provide the relevant...

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