What happened?

On July 30, 2025, Delaware Governor John Carney signed House Substitute 1 for House Bill 128 into law, significantly updating the state’s Family and Medical Leave Insurance Program ahead of its full implementation on January 1, 2026.

Overview:

The new law introduces several key changes that affect how employers manage paid leave:

• Coverage by Employer Size:
  • Employers with 25+ employees must provide full coverage.
  • Employers with 10–24 employees are only required to offer parental leave.
  • Employers with fewer than 10 employees are exempt.
  • Small employers who voluntarily offer more coverage will be treated as fully covered under the law.

• Paid Time Off (PTO): Employers can no longer require employees to use accrued PTO before accessing Delaware Paid Leave. PTO may only be used to supplement benefits if both parties agree.

• Primary Payor Rule: Delaware Paid Leave is now the main source of income replacement. Other benefits, like disability insurance, must be coordinated accordingly.

• Private Plans: Employers may meet program requirements through private plans. Applications are now accepted year-round, with start dates on January 1, April 1, July 1, or October 1. Employers with approved self-insured plans may begin collecting employee contributions immediately.

• Child Support Garnishment: Paid leave benefits may be withheld to satisfy child support obligations if certain conditions are met.

• Administrative Relief: Employers using private plans are not required to submit claim documentation unless there is an appeal, audit, or inquiry.

• Enforcement Tools: The Department of Labor now has authority to enforce judgments through property seizure, bank and wage garnishment, and penalties for non-compliance.

• Advisory Committee: A new committee of employer and employee representatives will guide program implementation and meet regularly through 2028.

Source References

• Delaware HB 128 – An Act To Amend Title 19 Of The Delaware Code Relating To The Family and Medical Leave Insurance Program

Resources

• Delaware – Delaware Paid Leave Is Coming – Resource Page

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