Delaware Lawmakers passed a law over the summer that revised Delaware’s Paid Family and Medical leave Program just in time for employees to start receiving benefits on January 1, 2026.
Background
The Healthy Delaware Families Act created a paid family and medical leave benefit (PFML or Program) for eligible residents beginning on January 1, 2026. The program will provide up to 12 weeks of paid leave to bond with a new child, care for a family member’s or one’s own serious health condition, or for qualifying military exigency. The program has been funded by employer and employee contributions, which began on January 1, 2025.
For more information, check out our previous Sequoia Foreword Blog: Delaware Passes Paid Family and Medical Leave.
Changes from House Bill 128
On July 30, 2025, the Governor signed House Bill 128, which impacts employer obligations, employee rights, and compliance requirements.
Benefits Coordination
A previous provision of the law, now rescinded, allowed employers to require that employees use accrued paid time off before accessing their paid leave benefits. This new provision specifies that employers cannot require the use of accrued paid time off before receiving benefits from the Program. Although an employer cannot require the use of accrued paid time off, the act does confirm that use of accrued paid time off to supplement or “top off” Delaware Paid Leave benefits requires both the employer and employee to agree to the top off.
In addition, Delaware Paid Leave is the primary payor of benefits. An employer’s disability insurance benefits may be offset by PMFL, according to the terms of the disability policy.
Private Plans
Like other states with mandatory paid family medical leave programs, employers may satisfy their obligations to comply with PFML through a private plan. Prior rules required employers interested in a private plan to apply for and renew their plans between September 1st and December 1st of each year. The provisions now require the Delaware Department of Labor to accept applications for approval of an employer’s private plan on a rolling basis with effective dates on the 1st of each quarter (January 1, April 1, July 1, or October 1).
Private plan documentation requirements have also been simplified, as no claim documentation is required unless there is an appeal, complaint, audit, or specific inquiry from the Department. Previously, employers with private plans were required to submit all claim documentation to the Department.
Employers with fewer than 25 employees in Delaware that voluntarily choose to provide employees with a private plan will have rules and regulations applied to their plan as if they are a covered employer by law.
Employer Action Items
Employers with employees in Delaware should continue to focus on previous Delaware Paid Family Medical Leave Program requirements as well as these new provisions and should:
- Confirm enrollment in state program or private plan compliance
- Review payroll systems for correct deductions and remittance
- Update leave policies from previous regulations
- Remove PTO exhaustion requirements and align other benefit rules
- Train managers and supervisors on PFML eligibility, benefit amounts, and concurrency with FMLA
- Prepare for employee claims starting January 1, 2026
Additional Resources
- Sequoia Foreword Blog: Delaware Passes Paid Family and Medical Leave
- Healthy Delaware Family Act
- Delaware House Bill 128
Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.
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