Delaware Labor Law Guide
Delaware is known for having a favorable business climate, and it is particularly popular for business incorporation. Business owners and investors from around the world set up companies in Delaware when they want to enter the US market. The state does not have sales tax and state-level corporate income tax for companies that operate outside of the state. This makes it an attractive location for businesses looking to minimize tax liabilities.
Minimum Wage
$11.75
Overtime Wage
$1.5x Regular Wages
Meal Breaks
Not mandated
Rest Breaks
Paid if 20 minutes or less
Minimum wage in the state of Delaware is $11.75 per hour except tipped workers. The minimum wage for tipped workers is $10.5 per hour.
Overtime rules in Delaware are governed by the federal law Fair Labor Standards Act (FLSA).
Non-exempt employees in Delaware are entitled to overtime pay for the hours worked beyond 40 hours in a week. The overtime pay is calculated at 1.5 times the regular hourly pay.
Delaware state follows the Fair Labor Standards Act (FLSA) which does not require employers to provide meal or rest breaks. Employers are free to offer breaks that follow applicable guidelines.
Meal breaks can be unpaid if the employee is completely relieved of duties during the break. Otherwise, employer may have to compensate for the meal break.
The FLSA does not mandate employers to give rest breaks for adult employees. If employers choose to give short breaks, they must pay the employees for the break time.
It’s important for employers in Delaware to understand that while federal law does not mandate breaks, employers must comply with any collective bargaining agreements, employment contracts, or industry-specific regulations that may require breaks.
Employers who employ young workers need to follow federal child labor laws which require breaks for young workers.
The state pf Delaware does not have a state law requiring paid leave for employees. Employers can have their own policies for paid leave. However, these policies may be impacted by federal laws and local ordinances.
- The Federal Family and Medical Leave Act (FMLA) is a federal law that allows eligible employees to take up to 12 weeks of unpaid leave per year for some family or medical reasons, such as the birth or adoption of a child, a serious health condition, or caring for a covered service member.
- Paid Sick Leave (Local Ordinances): Some local jurisdictions in Delaware, such as New Castle County and the City of Wilmington, have enacted local ordinances requiring employers to provide paid sick leave to employees. These ordinances may have specific requirements, and employers should be aware of any applicable local regulations.
- Employer Policies: Many employers in Delaware provide paid time off (PTO) or vacation days as part of their employment policies. The availability and accrual of paid leave often depend on the employer’s policies, employment contracts, or collective bargaining agreements.
- Collective Bargaining Agreements: For employees covered by collective bargaining agreements, the terms related to paid leave and time off may be outlined in the agreement.
The classification of employees as exempt or non-exempt in Delaware is primarily governed by the Fair Labor Standards Act (FLSA).
Exempt Employees:
- Salary Basis Test: Exempt employees are typically paid on a salary basis, meaning they receive a fixed salary that is not subject to reduction based on the quality or quantity of work performed.
- Salary Level Test: Exempt employees must earn a minimum salary to qualify for exemption. The minimum salary for exemption is $684 per week.
- Duties Test: Exempt employees must perform specific job duties that fall into one of the FLSA’s exempt categories, such as executive, administrative, professional, or certain computer-related duties.
Non-Exempt Employees:
- Hourly Pay: Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay for hours worked beyond 40 hours in a workweek.
- Overtime Pay: Overtime pay for non-exempt employees is generally calculated at 1.5 times their regular rate of pay for each hour worked beyond 40 hours in a workweek.
Delaware does not have a state-specific Equal Pay Act. Instead, employers must follow the federal legislation federal Equal Pay Act of 1963 under the Fair Labor Standards Act (FLSA).
Equitable Work:
The federal Equal Pay Act (EPA) prohibits wage discrimination based on sex, ensuring that employees of one sex are paid the same as employees of the opposite sex for equal work.
Exceptions to the equal pay is allowed in cases where the differences in pay arise from seniority systems, merit systems, systems that assess earnings based on quantity or quality of production, or other factors not related to employee’s sex.
Protection against Retaliation:
The Equal Pay Act explicitly prohibits employers from retaliating against employees who assert their rights under the act.
In addition to the EPA, employers must also adhere to Title VII of the Civil Rights Act of 1964 that prohibits discrimination based on race, color, religion, and national origin.
The state of Delaware follows the principle of employment-at-will. Under this principle, both the employer and the employee can terminate the employment relationship at any time and for any lawful reason, or for no reason at all, with some exceptions.
Employers should follow the following rules and guidelines when hiring and firing employees in Delaware:
Employment-At-Will: Delaware follows the employment-at-will principle. It allows employers to terminate employees with or without cause, and employees can resign from their positions at any time.
Anti-Discrimination Laws: Employers in Delaware must comply with federal anti-discrimination laws, including Title VII of the Civil Rights Act of 1964. It prohibits discrimination based on race, color, religion, sex, or national origin. Employers must also follow federal laws such as the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA).
Background Checks: Employers conducting background checks in Delaware have to comply with federal Fair Credit Reporting Act (FCRA), which governs the use of consumer reports for employment purposes.
Work Eligibility Verification: Employers in Delaware must comply with federal immigration laws, including completing Form I-9 to verify the work eligibility of employees.
Final Paychecks: The state of Delaware requires employers to provide employees with their final paychecks in a timely manner upon termination.
WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act may apply to employers with 100 or more employees, requiring them to provide advance notice of plant closings or mass layoffs.
Retaliation Protections: Employees in Delaware are protected from retaliation for engaging in certain protected activities, such as reporting workplace violations or filing discrimination complaints.
It is important for employers to remain well-informed about changes in employment laws and to seek guidance from legal professionals to ensure compliance with the latest regulations. It’s advisable to establish clear and meticulously documented employment policies and procedures to aid employers in complying with the labor laws.
