Key Takeaways:

• Employers preparing for the January 1, 2026, rollout of Delaware’s Paid Family Medical Leave Insurance Program should review recent amendments to the Healthy Delaware Families Act. Among other things, the amendments prohibit employers from requiring employees to use employer-provided paid time off such as vacation or sick leave before using Paid Family Leave Insurance benefits.

Delaware enacted House Substitute No. 1 for House Bill No. 128, amending the Healthy Delaware Families Act governing the state’s Paid Family and Medical Leave Insurance Program (PFMLA) on July 30, 2025. These changes, effective immediately, introduce new compliance obligations and clarify several aspects of the law that are particularly relevant for employers preparing for the program’s rollout.

Restrictions on Mandatory Use of Paid Time Off

The amendment prohibits employers from requiring employees to use accrued paid time off (PTO) before accessing PFMLA benefits. However, employers and employees may mutually agree to use PTO to supplement paid leave benefits. PTO includes both vacation and sick leave.

Child Support Garnishment Now Permitted

Employees filing for paid leave benefits must now disclose any outstanding child support obligations. If eligible for benefits, the Department of Labor is required to notify the appropriate enforcement agency and deduct the amount owed from the employee’s benefit payments.

PFMLA Designated as Primary Payor

The law now explicitly designates...

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