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On September 26, 2025, Delaware Governor Matthew Meyer signed legislation that will require Delaware employers to include wage, salary and benefits information in internal and external job postings. The new law will take effect in September 2027, at which time Delaware will join a growing number of states that have enacted pay transparency legislation.
Pay Range Posting
Beginning on September 26, 2027, Delaware employers with more than 25 employees must disclose the "hourly or salary compensation" or compensation range and a "general description of the benefits and other compensation" in job postings for roles based in the state and for U.S.-based remote roles offered by employers based in Delaware. The law defines the "hourly or salary compensation range" as "the minimum to maximum pay range for the position" that is set in good faith using one of four reference points: (1) "any applicable pay scale"; (2) "previously determined range for the position"; (3) "the actual range of others currently holding equivalent positions"; or (4) "the budgeted amount for the position." The law specifically states that the "breadth" of any range is relevant to whether the employer has complied in good faith, so it is critical for employers to publish defensible ranges that are not overbroad.
If a job is paid on a commission, the posting must disclose that fact and is not required to disclose the compensation or compensation range. Conversely, if a job is paid on a tipped basis, the posting must disclose both that fact and the base wage or wage range.
Exceptions
The new law contains a few exceptions:
- "Temporary, interim, or acting job opportunities that require an immediate hire" are exempt from the posting requirement, and the law authorizes the Delaware Department of Labor (DDOL) to promulgate regulations regarding this exemption.
- For jobs covered by a collective bargaining agreement, the law's posting requirements only apply once the collective bargaining agreement is executed, amended, modified, renewed or replaced after September 26, 2027.
- Employers are not liable for job postings that are digitally replicated and published without their consent. Similarly, a third party who posts or reposts a notification regarding a job opportunity is not subject to liability or enforcement under the law.
Enforcement
The law does not provide for a private right of action. Rather, the DDOL has enforcement authority and may enforce the law through administrative proceedings. An employer who violates the requirements of the law will receive a written warning for the first violation and be subject to a civil penalty of up to $10,000 for each subsequent violation.
Open Issues
The law is unclear in at least two key respects. First, it does not specify whether the employer must have more than 25 employees in Delaware. Because the law is silent on this point, for now employers with more than 25 employees who employ at least one person in Delaware should prepare for compliance. Second, with respect to the requirement for remote positions, the law also does not define what it means for an employer to be "based in" Delaware.
We anticipate that the DDOL likely will publish regulations or other guidance addressing these and other issues prior to the law's effective date.
What This Means for Employers
To ensure compliance by 2027, Delaware employers should:
- Review their existing compensations systems, including pay ranges and salary bands, to identify any potential issues or areas that will not be compliant with Delaware law come September 2027;
- To the extent they are subject to similar requirements in other states, assess how the new Delaware requirements fit in with the employer's overall pay transparency compliance strategy;
- Ensure that managers and human resources staff are trained and prepared to field employee questions about the basis for their current compensation once the requirement to post pay ranges is in effect;
- Consider conducting a privileged audit with the aid of legal counsel to identify and address pay differentials that require correction; and
- Plan to update job postings and provide guidance to human resource professionals—and any third-party job posting services they may use—on the new disclosure requirements.
For More Information
If you have any questions about this Alert, please contact Christopher D. Durham, Niyah Dantzler, any of the attorneys in our Employment, Labor, Benefits and Immigration Practice Group or the attorney in the firm with whom you are regularly in contact.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
