Labor & Employment

This is a Substitute for Senate Joint Resolution No. 7. Like Senate Joint Resolution No. 7, this Substitute directs the State Employees Benefits Committee (SEBC) to utilize specific strategies and policies when interacting and contracting with Pharmacy Benefit Managers (PBM) in order to achieve lower cost pharmaceutical drug benefit plans for the State. This Substitute differs from Senate Joint Resolution No. 7 by clarifying that the SEBC has a duty to consider all of the following strategies and policies when negotiating for pharmaceuticals: 1. Drug cost transparency. 2. Formation of an independent Pharmacy and Therapeutics Committee. 3. Any other supply chain tactics such as a reverse auction or transparency committee. 4. Compacts with other states to negotiate directly with drug manufacturers. 5. Paying no higher price for all drugs negotiated by Medicare. 6. Requiring PBMs disclose administrative expenses for all pharmaceutical drugs. 7. Requiring PBMs bid based on lowest pricing sources, not average wholesale price. 8. Requiring the SEBC be provided all agreements between PBMs and pharmaceutical companies when those agreements are for drugs contracted for on behalf of the SEBC. 9. Performing audits when the SEBC believes it should be entitled to information to achieve transparency or clarity. This Substitute differs from Senate Joint Resolution No. 7 by directing the SEBC to prepare a report by August 1, 2026, to summarize any difficulties in implementing any of these policies and to submit the report to the Governor; the President Pro Tempore of the Senate and Speaker of the House of Representatives, for distribution to all members of the General Assembly; the Director and the Librarian of the Division of Legislative Services; and the Public Archives.

This Act addresses information and access rights relating to bargaining units, which are defined under existing law as groups of public employees designated by the Public Employment Relations Board as appropriate for representation by an employee organization for purposes of collective bargaining. Section 1 of the Act amends the Public School Employment Relations Act in Title 14 of the Delaware Code. It provides that a public employer must provide an exclusive bargaining representative with certain contact information of bargaining unit employees, (i) within 14 calendar days of their hiring and (ii) in January and October of each year, starting in January 2026. In addition, a public employer must allow an exclusive representative to communicate with bargaining unit members using their employer-issued email addresses regarding collective bargaining, the administration of collective bargaining agreements, the investigation of grievances, workplace-related complaints and issues, and internal matters involving the exclusive representative's governance or business. Section 2 of the Act makes these same amendments to the Public Employment Relations Act in Title 19 of the Delaware Code.

This Act aligns Delaware’s non-discrimination laws. Delaware has several broad laws that prohibit discrimination in public accommodations, housing, employment, and insurance but also has many narrow non-discrimination laws that apply to a specific entity, or type of entity, even though a broad law also prohibits discrimination by that entity. This Act aligns the narrower non-discrimination laws with the applicable broad non-discrimination law by also prohibiting discrimination on any other basis protected under the applicable broad law. Adding the reference to the chapter for the applicable broad law includes all protected classes, definitions, and actions that are currently protected under the broad law or that are added to the broad law in the future. This Act does not make any substantive changes to current non-discrimination laws but is necessary because most of the narrow laws do not contain all of the same protected classes as the broad law that also applies or do not include the definitions of classes that are also in the broad law. These inconsistencies could lead to a misunderstanding by someone reading only an incomplete narrow law, and eventually litigation, about what constitutes illegal discrimination by an entity covered by both the narrow and broad laws. For example: • The non-discrimination provision for the Board of Podiatry under § 506(c) of Title 24 does not prohibit discrimination on the basis of the following classes, for which discrimination is prohibited under Chapter 45 of Title 6: age, marital status, religion, sexual orientation, gender identity, or disability. • Only 4 of the 42 chapters in Title 24 establishing professional licensing boards contain a non-discrimination provision, but this does not mean that the other 38 licensing boards are free to discriminate. Aligning these 4 non-discrimination provisions with Chapter 45 of Title 6 clarifies that Chapter 45 of Title 6 also applies to the 38 professional boards that do not have specific non-discrimination provisions. • For merit system state employees, § 5953 of Title 29 only prohibits discrimination based on race, religion, sex, sexual orientation, gender identity, and housing status but in addition to these classes, § 711 of Title 19 prohibits any employer in this State, including the State, from discriminating in employment based on age, marital status, color, national origin, or disability. • Most of the narrower non-discrimination laws do not include all of the definitions in the applicable broad law. Adding the reference to the applicable broad law incorporates those definitions into the narrower law. For example: 1. All of Delaware’s non-discrimination laws prohibit discrimination based on race and all of the broad non-discrimination laws define “race” as including traits historically associated with race, including hair texture and protective hairstyle. However, very few of the narrower non-discrimination laws include this definition of “race”. 2. Several narrow non-discrimination laws prohibit discrimination on the basis of sexual orientation and gender identity but do not include or specifically reference the definitions of “sexual orientation” or “gender identity” in the applicable broad non-discrimination law. Specifically, this Act revises the following narrow non-discrimination laws to align with the applicable broad non-discrimination law, as follows: To align with the Delaware Equal Accommodations Law, Chapter 45 of Title 6, which prohibits discrimination on the basis of race, age, marital status, creed, religion, color, sex, disability, sexual orientation, gender identity, or national origin by establishments that offer goods, services, facilities, privileges, advantages, or accommodations to the general public, including government agencies: • Transportation networks, § 1917 of Title 2. • Parkland owned by civic associations, § 8110 of Title 9. • Jury service, § 4502 of Title 10. • Private business and trade schools, § 8516 of Title 14. • Delaware Veterans Memorial Cemetery, § 1204 of Title 20. • Board of Podiatry, § 506 of Title 24. • Board of Chiropractic, § 706 of Title 24. • The Board of Medical Licensure & Discipline, § 1713 of Title 24. • Board of Funeral Services, § 3102 of Title 24. To align with the Delaware Fair Housing Act, Chapter 46 of Title 6, which prohibits discrimination on the basis of race, color, national origin, religion, creed, sex, marital status, familial status, source of income, age, sexual orientation, gender identity, disability, or housing status in housing offered for sale, rent, or exchange: • Section 4601 of Title 6, because gender identity is missing from the list of classes protected in the purpose section of Chapter 46 even though gender identity is protected under all of the substantive provisions under that chapter. • Recording of deeds, § 9605 of Title 9. • Residential Landlord-Tenant Code, § 5116 of Title 25. To align with Chapter 46 of Title 6, Subsections (a), (b), and (d) are revised to use the term "familial status" because "familial status" is defined in the Delaware Fair Housing Act to mean a household with children. • The definition of “comparable housing” in § 7102 of Title 25 for the conversion of manufactured home communities. To align with the unlawful employment practices in employment under Chapter 7 of Title 19, which prohibits discrimination in employment on the basis of race, marital status, genetic information, color, age, religion, sex including pregnancy, sexual orientation, gender identity, national origin, housing status, disability, status as a victim of domestic violence, a sexual offense, or stalking, or a reproductive health decision: • New Castle County government, § 1183 of Title 9. • Training and apprenticeship programs, § 204 of Title 19. • Merit System of Personnel Administration, § 5953 of Title 29. • Large public works contracts, § 6962 of Title 29. This Act also clarifies that the definition of “place of public accommodation” in § 4502(19) of Title 6 includes entities and services licensed or regulated under Title 5, Banking. This Act does not make any changes to Title 18 for insurance. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This substitute for House Bill No. 128, like House Bill No. 128, does the following: This Act provides that the Paid Family and Medical Leave Insurance Program is the primary payor, and other paid leave benefits must be coordinated with this benefit according to the terms of the policy or procedure governing other benefits. This Act also allows disability insurance benefits to be offset by family and medical leave benefits paid to an employee pursuant to the terms of a disability insurance policy. This Act addresses private plans, and clarifies that an employer that meets its obligations under Chapter 37 of Title 19 through a private plan does not need to provide claim documentation to the Department except if there is an appeal, complaint, audit, or specific inquiry from the Department. Private plan employers with fewer than 25 employees that voluntarily elect to provide coverage under the Chapter that is otherwise exempted due to the size of their companies will be subject to all of the provisions of the Chapter. This Act establishes a Paid Leave Advisory Committee to review issues related to the implementation and administration of the Paid Family and Medical Leave Insurance Program and to review proposed statutory and regulatory amendments to the program. This substitute differs from House Bill No. 128 as follows: This substitute does not change the calculation of an application year or change the 24-month benefit period to a 12-month benefit period. This substitute adds provisions for child support garnishment of PFMLA benefits. This substitute prohibits the practice of requiring employees to use unused accrued paid time off before accessing PFMLA benefits. This substitute allows the Paid Leave Advisory Committee to begin meeting once the Delaware LaborFirst system is functional and the steering committee has been dissolved. This substitute specifies that family and medical leave benefits cannot be assigned and are exempt from the claims of creditors. This substitute sets forth procedures for executing upon judgments for amounts due under Chapter 37 of Title 19 or other titles subject to this chapter.

This Act is intended to supplement protections under federal law for members of the military, their families, and veterans by adding “military status” as a protected class for purposes of the State’s public accommodations, housing, insurance, education, and employment laws. Technical corrections are also made to existing statutory language to conform with the requirements of the Legislative Drafting Manual. This House Substitute No. 1 adds language to clarify that distinctions or differential treatment based on military status that are allowed by State law or regulation, federal law or regulation, or government contract, are not unfair or discriminatory practices. It also updates existing statutory language that was changed by 84 Del. Laws c 429.

This Act provides a one-time increase of 3% in aggregate worker’s compensation medical expenses to correct reimbursements for medical services coded as evaluation and management (E&M) for worker compensation cases. This is needed as the E&M reimbursement rate for Workers’ Compensation cases has fallen below the reimbursement rate of the Center for Medicare & Medicaid Services rates. This is a critical need as the State of Delaware is in critical need of physicians to accept and treat worker compensation patients.

This Act does the following: (1) Updates the Workers’ Compensation Act to reflect current practices and technology including enabling workers’ compensations payments to be by made by direct deposit. (2) Allows the Office of Workers’ Compensation to increase the reimbursement percentage of activities from 66.6% to 100%. This ensures that the inspection and safety functions of the Division of Industrial Affairs are fully covered as they are partially covered right now. Insurance carriers pay the assessment imposed by this section. The annual budget process provides caps or spend authorities on these appropriated special funds on an annual basis. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.