The Delaware House Bill 128 (HB 128) or ‘the Act’ focuses on changes to the upcoming state’s paid family medical leave program known as Delaware Paid Leave . This will take effect from January 1, 2026. The Act took effect immediately when enacted on July 30, 2025 and has made significant changes to how employer’s paid leave policies will collaborate with the Delaware Paid Leave benefits.

Under the new Act, Delaware Paid Leave is the primary provider of benefits. Any disability insurance benefits from the employer may be offset by Delaware Paid Leave as per the disability policy’s terms. Any other income replacement benefits must be coordinated with the Delaware Paid Leave benefits as per the governing policy or procedure. Interestingly, a provision that allowed employers to demand that employees use up their paid time off before accessing Delaware Paid Leave benefits is rescinded under the new Act. Now, the law prevents employers from mandating that accrued paid time-off must be used before receipt of the Delaware Paid Leave benefits. In addition, use of accrued paid time off to supplement Delaware Paid Leave benefits necessitates the agreement of both employer and employee.

Private plans were also impacted by the Act, essentially allowing employers to meet their obligations under Delaware Paid leave through such provisions. The Delaware Department of Labor is required to accept applications for private plan usage on a rolling basis, with dedicated effective dates. Employers with self-insured private plans could begin collecting contributions from July 30, 2025.

The Act also validates that employers with private plans no longer must submit claim documentation to the Department, except during an appeal, complaint, audit, or specific inquiry from the Department. Further provisions are in place to execute judgments of penalties as well. The Act specifies that states due to begin family and medical leave benefits programs within the next nine months, such as Delaware and Minnesota (from January 1, 2026), and Maine (from May 1, 2026), should begin preparing their policies and alert their employees about their rights under the program.

For additional information, it may be beneficial to learn how to get a hold of Paid Family Leave. One helpful resource is eddcaller.com, which offers guidance and tips on dealing with EDD-related concerns.