Starting January 1, 2026, eligible employees in Delaware will be able to take paid leave under the state’s new Paid Family and Medical Leave (PFML) program. As that date approaches, it’s essential for HR professionals to understand how PFML benefits will interact with existing company-paid leave policies and short-term disability (STD) or long-term disability (LTD) plans. Proper coordination is key to staying compliant, preventing overpayment, and ensuring a smooth experience for both HR teams and employees.
Delaware PFML at a Glance: A Quick Refresher
While most employers tracking Delaware’s PFML developments are already familiar with the basics, here’s a short summary of the program’s key elements:
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Eligibility: Employees qualify if they’ve worked at least 12 months for their current employer, with at least 1,250 hours of service in the past year, and perform at least 60% of their work in Delaware.
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Covered Leave Types:
- Parental leave (up to 12 weeks),
- Medical leave for an employee’s own serious health condition,
- Family caregiving leave,
- Military exigency leave.
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Non-parental leave types are capped at 6 weeks in a 24-month period. The total maximum leave across all types is 12 weeks per year.
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Benefit Amount: Starting in 2026, eligible employees can receive 80% of their average weekly wage, up to $900/week. A minimum of $100/week applies unless the employee’s weekly wage is below that amount.
Coordination of Benefits: Primary vs. Secondary
In the context of leave benefits, “primary” refers to the benefit that is applied first, while “secondary” benefits supplement the primary benefit without exceeding 100% of the employee’s average weekly wage. In other words, the “secondary” benefit will deduct the “primary” benefit amount. Delaware’s regulations stipulate that:
- Employer-Provided Benefits as Primary: If an employer’s short-term disability (STD), long-term disability (LTD), or other company paid leave policy is designated as primary, the PFML benefit will be reduced accordingly to ensure the total does not exceed 100% of the employee’s average weekly wage.
- PFML as Primary: Conversely, if PFML is designated as the primary benefit, the employer’s provided benefits will supplement the PFML benefit up to the 100% threshold.
- No Designation: If there is no clear designation in the employer’s policy, PFML benefits are considered secondary by default.
Employers are required to provide written notice to employees detailing how their existing benefits coordinate with PFML, including which benefits are primary or secondary.
Action Items for HR Professionals
To prepare:
- Review existing policies (STD, LTD, and paid leave) for language around benefit coordination.
- Clarify benefit priority in writing—whether PFML is primary or secondary.
- Communicate clearly with employees, outlining how benefits will work together.
- Train your HR team to answer questions and handle requests with confidence.
- Stay proactive with compliance monitoring as the program nears implementation.
About Sparrow
Sparrow simplifies employee leave management for modern teams. By combining expert service with secure technology, Sparrow helps employers administer leaves like Paid Family and Medical Leave, disability, parental leave, and more—efficiently and with care. Our goal is to take the complexity out of leave so HR professionals can focus on what matters most: supporting their people.