Delaware Enacts Pay Transparency Law | What Employers Need to Know
Delaware has joined the increasing number of states enacting pay transparency laws which would require employers in Delaware to include wage ranges and benefits information in job postings. Under thelaw, which is effective starting in 2027, employers with more than 25 employees will need to include “the hourly or salary compensation range and a general description of the benefits and other compensation.” The Act defines “hourly or salary compensation range” as including “a minimum to maximum pay range for the position, set in good faith” and should be posted both internally and externally. Further, if an internal or external posting is not made available to an applicant, the employer “must provide the applicant the hourly or salary compensation range and a general description of the benefits and other compensation … prior to any offer or discussion of compensation…”
Applicable employers include employers with 26 or more employees:
• Posting job opportunities located in Delaware
• Non-international remote positions offered by Delaware-based employers
• Job opportunities covered by a collective bargaining agreement only after the collective bargaining agreement is “executed, amended, modified, renewed, or replaced after the effective date of the Act.”
Enforcement and Penalties
The Delaware Department of Labor will enforce the provisions of the Act and will adopt regulations establishing administrative procedures prior to the effective date. Employers who fail to comply in good faith with the obligations under the Act will receive a written warning for their first offense. Any failure to comply following receipt of the written warning may be subject to penalties ranging from $500 to $10,000 per violation. The same penalties are applicable in cases where the Department of Labor finds the employer discharges or engages in discrimination against an individual who reports a violation to the Department of Labor or cooperates with an investigation the Department is conducting.
Employers are not liable in instances in which a job posting is digitally replicated and published without their consent. Additionally, third parties who post or repost a job opportunity is not liable under the Act.
Next Steps
Despite the Act not going into effect until 2027, employers should consider the following next steps.
• Update policies and procedures now to address how they will comply
• Review internal and external job postings to ensure the necessary information is included
• Train employees responsible for job postings on the ways in which the employer is expected to comply and the consequences of non-compliance
• Discuss obligations with third-party vendors and recruiters and confirm these parties are prepared to comply by the effective date
Currently the Act does not clarify whether the minimum employee count includes solely employees within Delaware or all employees working for the company. Additional guidance is anticipated ahead of the 2027 effective date.
