Dominik Kolodziejczyk is an associate counsel at the life insurance company ShelterPoint.
Delaware is on the verge of a major milestone in workplace benefits. Beginning Jan. 1, 2026, most businesses with at least 10 employees working in the state will be required to provide benefits under paid family and medical leave — a program designed to give workers job-protected, partially paid time off for life’s most important moments: welcoming a new child, caring for a seriously ill loved one or managing their own health challenges.
Gov. Matt Meyer recently signed House Bill 128 into law, introducing critical updates to make the upcoming PFML initiative more practical and effective for both employers and employees. One of the most significant changes is that employers can no longer require employees to use accrued paid time off before accessing these benefits. Instead, they may mutually agree to use PTO to “top up” their PFML benefits to their usual pay. This flexibility respects employee choice, while allowing businesses to support their workforces more effectively.
HB 128 also reduces administrative burdens and improves claims-processing efficiency — critical objectives for a new program. The law enhances benefits coordination between Delaware paid leave and other income replacement programs like short-term disability. Employers with private plans will no longer need to submit unnecessary claim documentation to the state unless requested. To promote transparency and collaboration, the law establishes an advisory committee comprised of employer and employee representatives, which will serve as a public forum for stakeholders to share perspectives and provide input on program rules, finances and operations — ensuring real-world functionality.
Another important change is that employers can now opt out of the state plan in favor of a private plan at any time during the year, with new plans taking effect as soon as the start of the next calendar quarter. This is a game changer for many employers, simplifying integration with existing leave programs and giving them control over how to delegate claims responsibilities to an experienced insurance carrier or administrator.
Starting in 2026, eligible employees can receive up to 80% of their wages, capped at $900 per week, for qualifying events. These include up to 12 weeks of parental leave and up to six weeks every 24 months for an employee’s own medical leave, to care for a seriously ill family member or for a military exigency, capped at 12 weeks of combined leave per application year.
Employer obligations vary by size. Businesses with at least 10 employees working in Delaware must provide parental leave benefits. Those with 25 or more Delaware employees must offer the full range of PFML benefits: parental leave, medical leave, family caregiver leave and military exigency leave. Employers below these thresholds are not required to participate but may voluntarily opt in.
The clock is ticking. Employers should begin reviewing their leave policies now to ensure compliance and consider whether a private plan might better align with their needs. For multistate employers, Delaware joins a growing list of states — including Minnesota and Maine — rolling out similar programs in 2026. Paid family and medical leave isn’t just a legal requirement; it’s a competitive advantage. Efforts like Delaware’s help businesses attract and retain talent, reduce turnover and foster healthier, more engaged workforces. These updates help employers deliver on that promise.
PFML is coming, and these changes ensure that it works better for everyone. Now is the time to prepare — because this program is more than a mandate; it’s a promise of balance, security and care when it matters most.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
