Hiring Employees in Delaware

Classifying Your Workers Correctly

Your company must distinguish properly between employees and independent contractors under IRS common law tests and Delaware wage laws. You should review behavioral control, financial control, and the overall relationship to decide if a worker belongs on payroll or should be treated as a contractor.

Delaware follows federal rules for exempt vs nonexempt status, so you need to check salary level, salary basis, and duties tests before denying overtime. Misclassification can trigger back wages, unpaid overtime, tax liabilities, interest, and penalties – you can learn more from Playroll’s employee misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

For every new hire in Delaware, you must complete Form I‑9 within three business days of the employee’s start date to verify identity and work authorization. You must examine original acceptable documents from the employee and keep I‑9s for at least three years after hire or one year after termination, whichever is later.

Delaware does not currently mandate E‑Verify for all private employers, but you may choose to use it voluntarily or if required by a federal contract. Make sure your onboarding process stores I‑9 records separately from personnel files and protects employees’ personal information.

Create an Employee Onboarding Process

When you hire in Delaware, you should issue a clear written offer letter outlining pay rate, pay schedule, position, and at‑will status. During onboarding, collect federal Form W‑4, any applicable Delaware withholding form, direct deposit details, and signed acknowledgments for your handbook and key policies.

You must also provide required state and federal notices, such as wage information, workers’ compensation coverage, and anti‑discrimination postings. Building a standardized onboarding checklist helps you stay compliant and gives you better visibility into the true cost of hiring each Delaware employee.

Pay Frequency & Methods

Delaware law generally requires you to pay wages at least once per month, and many employers choose biweekly or semimonthly schedules for consistency. You must pay earned wages no later than seven days after the end of the pay period, and final wages are typically due by the next regular payday after separation.

Failure to pay on time or in full can expose your company to wage claims, liquidated damages, and attorneys’ fees. Keep written pay policies and accurate time records so you can demonstrate compliance if the Delaware Department of Labor investigates.

Payment Methods (How You Can Pay)

You can choose from several lawful payment methods in Delaware, but you must always ensure employees receive full wages without unlawful deductions and have clear access to wage statements.

• Payroll Check: You may pay by check as long as it is payable at full face value in cash at a bank readily accessible to the employee.
• Cash: You can pay wages in cash, but you must provide a written wage statement showing hours, rates, gross pay, and all deductions.
• Direct Deposit (EFT): You may use direct deposit if the employee voluntarily authorizes it and can choose the financial institution receiving the funds.
• Paycards: You may pay by payroll card if employees can access their full wages at least once per pay period without fees and receive required disclosures.
• Outsourced Payroll: You can outsource payroll to a third‑party provider, but your company remains legally responsible for accurate wage payment and tax remittance.

When you hire employees in Delaware, you must withhold and remit federal and state payroll taxes and pay employer contributions on top of gross wages. You will need to register with Delaware tax agencies, set up accurate withholding in your payroll system, and file returns on the required schedules.

Employer Tax Contributions

As a Delaware employer, you are responsible for federal Social Security and Medicare taxes, federal unemployment tax (FUTA), Delaware unemployment insurance, and any required state assessments. You must register for a Delaware withholding account and unemployment account before running payroll and keep up with quarterly and annual filings.

Employee Payroll Tax Contributions

Your Delaware employees fund part of their own tax burden through withholdings from each paycheck, which you must calculate and remit on time. Your payroll system should apply the correct federal and state income tax tables and track year‑to‑date amounts for W‑2 reporting.

Minimum Wage in Delaware

As of 2025, Delaware’s minimum wage is $13.25 per hour for most nonexempt employees, higher than the federal minimum. You must track any scheduled increases under state law and ensure that tipped employees receive at least the full minimum wage when tips are added to the lower cash wage.

Working Hours in Delaware

Delaware does not set a daily maximum for adult employees, but you must comply with federal rules on recordkeeping and child labor. You should maintain accurate daily and weekly time records, provide reasonable meal and rest breaks consistent with your policies, and avoid scheduling minors in prohibited hours or occupations.

Overtime in Delaware

Delaware follows the federal Fair Labor Standards Act, so nonexempt employees must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. You should define your workweek in writing, track all hours worked including certain travel and training time, and confirm that any salaried employees treated as exempt truly meet the exemption tests.

In Delaware, you are not required to offer most fringe benefits, but competitive employers typically provide health insurance, retirement plans, and paid time off. If you average 50 or more full‑time employees, the federal Affordable Care Act requires you to offer affordable, minimum‑value health coverage or face potential penalties.

Mandatory Leave Policies in Delaware

Paid Time Off in Delaware

Delaware law does not require you to provide paid vacation or general PTO, but once you adopt a policy, you must follow it consistently. You should clarify in writing how PTO accrues, whether unused time carries over, and what happens to balances at termination.

Many Delaware employers offer PTO banks instead of separate vacation and sick time to simplify administration and support recruitment. Make sure your PTO policy aligns with your payroll practices and is clearly communicated during onboarding.

Maternity & Paternity Leave in Delaware

Delaware does not currently mandate separate paid maternity or paternity leave for most private employers, but eligible employees may qualify for unpaid leave under the federal FMLA for childbirth and bonding. You must maintain group health coverage during FMLA leave on the same terms as if the employee were working.

Some employers choose to layer employer‑paid parental leave on top of FMLA or short‑term disability benefits to stay competitive. Whatever you offer, document eligibility, duration, and pay rules so managers apply them consistently.

Sick Leave in Delaware

There is no statewide requirement for private employers to provide paid sick leave in Delaware, though you may adopt a policy or PTO program that covers illness. If you do, you must honor your written policy and avoid discriminatory application across employees or locations.

Consider allowing sick leave to be used for the employee’s own illness, medical appointments, and care of close family members to support retention and productivity. Clear documentation of accruals and usage will help you manage attendance fairly.

Military Leave in Delaware

Employees in Delaware who serve in the uniformed services are protected by federal USERRA and applicable state laws, which require unpaid leave and prompt reinstatement to the same or comparable position. You must preserve seniority, benefits, and certain pension rights as if the employee had not been absent.

Your company should maintain a written military leave policy explaining notice requirements, benefit continuation, and how employees can return to work after service. Train managers not to retaliate against employees for military obligations.

Jury Duty in Delaware

Delaware employers must allow employees time off to serve on a jury and may not threaten or discipline them for complying with a summons. State law does not require you to pay employees for this time, but many employers voluntarily provide some paid jury leave.

You can request proof of jury service, such as a court notice or attendance slip, and should document how jury duty pay interacts with regular wages. Make sure supervisors know they cannot pressure employees to avoid or postpone service.

Voting Leave in Delaware

Delaware law does not generally require private employers to provide paid or unpaid voting leave, but you should still support employees’ ability to vote. Offering flexible scheduling, early‑shift releases, or remote work options on election days can help employees reach the polls.

Include any voting‑related flexibility in your handbook so expectations are clear and consistently applied across teams and locations. Avoid policies that could be seen as discouraging civic participation.

Bereavement Leave in Delaware

Delaware does not mandate bereavement leave, so whether time off is paid or unpaid depends on your internal policy. Many employers provide several days of paid leave for the death of an immediate family member to support employees during difficult times.

Define who qualifies as “family,” how much leave is available, and any documentation you may request, such as an obituary or funeral notice. Consistent application of your bereavement policy helps avoid perceptions of unfair treatment.

Termination Process

Delaware is an at‑will employment state, meaning you or the employee can generally end the relationship at any time for any lawful reason. You should still document performance issues, follow your disciplinary procedures, and provide a clear written termination notice summarizing final pay and benefits information.

Notice Period

Delaware law does not require advance notice of termination for most private employees, unless you have a contract or collective bargaining agreement that says otherwise. However, you must comply with federal WARN Act rules if you conduct certain large‑scale layoffs or plant closings affecting eligible employees.

Severance

Severance pay is not required under Delaware law, but you may choose to offer it in exchange for a signed release of claims, subject to federal and state restrictions. If you adopt a severance plan or policy, apply it consistently and clearly explain eligibility, calculation methods, and payment timing.