Minimum Wage in Delaware: What Workers and Employers Should Know
Explore how Delaware's minimum wage laws impact different types of workers and what employers need to ensure legal compliance.
Delaware’s minimum wage laws have undergone significant changes, affecting worker pay and employer obligations. With scheduled increases taking effect, understanding these rules is crucial for compliance and financial planning for both businesses and employees.
Who Is Covered
Delaware’s Minimum Wage Act, detailed in Title 19, Chapter 9 of the state code, sets pay requirements for most workers.1Delaware Code Online. Title 19 – Labor, Chapter 9 – Minimum Wage The law defines “employer” broadly to include nearly any entity acting on behalf of an employer regarding an employee. This means most businesses in Delaware, across various sectors, must follow state minimum wage rules. The law applies to almost anyone “employed,” meaning permitted to work, ensuring that the majority of individuals working for Delaware businesses are entitled to the state minimum wage.
Tipped Wage Provisions
Delaware has specific rules for employees who regularly receive more than $30 per month in tips. State law (Title 19, Section 902) allows employers to pay these workers a direct cash wage lower than the standard minimum wage. This tipped minimum cash wage is $2.23 per hour, a rate unchanged since 1996.
The difference between the standard minimum wage ($13.25 per hour as of Jan. 1, 2024, rising to $15.00 on Jan. 1, 2025) and the $2.23 cash wage is the “tip credit.”2Delaware Department of Labor. Minimum Wage Currently, the maximum tip credit is $11.02 per hour, increasing to $12.77 in 2025. Employers can only use this credit if the employee’s cash wage plus tips equals at least the full state minimum wage for all hours worked. If tips fall short, the employer must pay the difference.
State law also dictates that tips belong solely to the employee providing the service.3Delaware Code Online. Title 19 – Labor, Chapter 11 – Wage Payment and Collection Employers cannot take employee tips, including for credit card processing fees, as confirmed by the Delaware Department of Labor. While employees can voluntarily pool tips, employers generally cannot mandate tip pooling unless multiple employees directly serve the same customer, and even then, contributions are capped at 15% of the primary server’s tips. Employers must keep accurate wage and tip records for three years.
Exempt Employees
While coverage is broad, Delaware’s Minimum Wage Act exempts certain worker categories, primarily defined in Title 19, Section 901 of the state code.
Individuals employed in agriculture are excluded. Those in domestic service within a private home, like housekeepers employed directly by the household, are also not covered. Workers employed by the U.S. government fall under federal rules, not state minimum wage law.
Other exemptions include outside salespeople paid on commission and individuals in executive, administrative, or professional roles, which typically involve higher responsibility and meet specific salary and duty tests often aligned with federal standards. Employees engaged in fishing and fish processing at sea are another exempt group.
Specific exclusions also apply to volunteers for educational, religious, or non-profit organizations, junior camp counselors at non-profit summer camps, and inmates in certain Department of Correction programs.
Enforcement and Penalties
The Delaware Department of Labor’s Division of Industrial Affairs, through its Office of Labor Law Enforcement, enforces the state’s Minimum Wage Act. The office investigates potential violations, often prompted by employee complaints or departmental audits, which can involve examining employer payroll and time records. Employers are required by Title 19, Section 909 to maintain these records accurately for three years.
If the Department finds a violation, penalties outlined in Title 19, Section 910 can be imposed. Employers paying less than the minimum wage face civil penalties ranging from $1,000 to $5,000 for each violation. Hindering investigations, falsifying records, or failing to post required legal summaries are considered separate violations subject to fines.
Employers are also liable for the full amount of unpaid back wages owed to affected employees. Under Delaware’s Wage Payment and Collection Act (Title 19, Section 1103), if an employer lacks reasonable grounds for disputing unpaid wages, liquidated damages may be assessed. These damages can equal the unpaid wages or 10% of the unpaid amount for each day the failure continues, whichever is less. The Department of Labor can pursue court action to collect penalties and ensure compliance.
Seeking Legal Recourse
Employees who believe they haven’t received the required minimum wage can pursue legal action directly against their employer, separate from filing a complaint with the Department of Labor. This right to a private lawsuit is granted by Delaware’s Wage Payment and Collection Act (Title 19, Section 1113), allowing civil actions in court to recover unpaid wages and damages.
Through a lawsuit, an employee can seek the unpaid minimum wages plus potential liquidated damages. As outlined in Title 19, Section 1103, if wages were withheld without reasonable grounds, liquidated damages can equal the lesser of the unpaid wages or 10% of that amount for each day payment is late (excluding Sundays and holidays). If the employee prevails in court, Section 1113 also mandates that the employer pay the employee’s court costs and reasonable attorney’s fees.
Employees must file wage claims within a specific timeframe, known as the statute of limitations. Recent legislation extended this period to two years from the date the violation occurred; previously, it was one year. This gives workers more time to pursue legal action.
The appropriate court depends on the amount claimed: Justice of the Peace Court handles claims up to $25,000.4Delaware Courts. Justice of the Peace Court Civil Cases The Court of Common Pleas handles claims between $25,000 and $75,000.5Delaware Courts. Court of Common Pleas Civil Division The Superior Court generally handles claims exceeding $75,000.
