Delaware: More Paid Family and Medical Leave Changes!

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APPLIES TO

All Employers with Employees in DE

EFFECTIVE

June 30, 2025

QUESTIONS?

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(888) 378-2456
Quick Look

  • HB 128 makes additional changes to the Delaware Paid Leave program which begins on January 1, 2026.
  • The primary changes address coordination and priority of benefits and private plans.

Discussion

Effective June 30, 2025, HB 128 makes additional changes to Delaware Paid Leave program which begins on January 1, 2026. The most significant changes impacting employers are summarized below.

 

Private Plans. Employers with self-insured private plans can begin collecting employee contributions as of June 30, 2025. The Delaware Department of Labor will accept applications for approval of a private plan on a rolling basis with effective dates of January 1, April 1, July 1, or October 1.

 

Coordination of Disability Benefits. Disability insurance benefits can be offset by family and medical leave benefits in accordance with the terms of the disability insurance policy. Employers with approved private plans do not have to provide claim documentation to the Department unless the claim is the subject of an appeal, complaint, audit, or other specific inquiry from the Department. Lastly, employers with less than 25 employees that voluntarily provide coverage through a private plan must comply with all of the law’s requirements as if they were a covered employer.

 

Accrued Time Off. Employers cannot require eligible employees to use unused accrued paid time off prior to applying for family and medical leave benefits. Both the employer and employee can agree to use the paid time off to supplement paid family and medical leave benefits.

 

Income Replacement Priority. The paid family and medical leave insurance program is the primary payor. Other income replacement benefits are to be paid in accordance with the terms of the policy or other available benefits.

 

Disclosure of Child Support Obligations. Individuals filing a new claim for family and medical leave benefits must disclose at the time of filing whether they owe child support. If they do and are eligible for benefits, the Department will notify the appropriate state or local child support enforcement agency and the Department will withhold child support obligations from the family and medical leave benefits.

 

Department Enforcement Tools. For individuals and employers that fail to pay an assessment, interest, or penalty for violating the law, the Department can issue a warrant for levy and sale of personal or real property, garnish bank accounts, and garnish wages, salaries, and other amounts due from employers.

 

Action Items

  1. Review and update Delaware Paid Leave policy.
  2. Submit applications for private plans for approval to the Department, if applicable.
  3. Begin collecting employee contributions under approved private plans.
  4. Train appropriate personnel on the requirements.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase