Starting in the new year, the minimum wage in Delaware will increase by 13% from the existing rate of $11.75 per hour. This hike is a step in the state’s plan to raise the minimum wage to $15 per hour by 2025. Here is a complete guide for business owners about Delaware minimum wage and about upcoming changes.
What Is the Delaware Minimum Wage in 2024?
Starting January 1, 2024, Delaware’s minimum wage is $13.25 per hour for most workers. This includes younger workers and trainees, who previously might have earned less; now, all workers are entitled to at least the standard minimum wage. Tipped employees like waitstaff have a minimum cash wage set at $2.23 per hour.
This adjustment is part of a planned series of increases, leading to a minimum wage of $15.00 per hour by January 1, 2025. All employers in Delaware must adhere to these wage standards, regardless of the employee’s age.
History of Minimum Wage in Delaware
Delaware has implemented several minimum wage increases over the years, starting from $8.25 in 2015. The minimum wage on June 1, 2015 was $8.25 per hour. Significant increments followed, with the wage rising to $8.75 on January 1, 2019, then to $9.25 on October 1, 2019, and subsequently to $10.50 on January 1, 2022. The upward trend continued with the wage reaching $11.75 on January 1, 2023, and it is set to rise further to $13.25 on January 1, 2024, with a planned increase to $15.00 on January 1, 2025.
Delaware’s wage laws previously included a training wage and a youth rate set at $8.75. These were applicable for adult workers over 18 during their first 90 days of a new job and youths aged 14-17, respectively. However, these special wage rates were abolished effective December 29, 2021.
Below is a summary table of the historical changes to Delaware’s minimum wage:
| Effective Date | Minimum Wage |
| June 1, 2015 | $8.25/hr |
| January 1, 2019 | $8.75/hr |
| October 1, 2019 | $9.25/hr |
| January 1, 2022 | $10.50/hr |
| January 1, 2023 | $11.75/hr |
| January 1, 2024 | $13.25/hr |
| January 1, 2025 | $15.00/hr |
This progression reflects Delaware’s commitment to increasing the minimum wage incrementally over time, aiming to improve the economic conditions for its workers.
Variations in Minimum Wage Across Delaware
The minimum wage across Delaware differs from one area to another. In 2024, the hourly minimum wage in New Castle County, Kent County, Sussex County, Dover, Wilmington, and Newark is $13.25. This increment is part of a strategy to elevate the minimum wage to $15.00 by 2025. Tipped employees have a different rate, with a minimum cash wage of $2.23 per hour.
Similarly, in Smyrna and Middletown, the minimum wage for 2024 is $13.25 per hour, aligning with the statewide goal to reach a $15.00 hourly rate by 2025. The minimum cash wage for tipped employees remains at $2.23 per hour.
What Is the Tipped Minimum Wage Law?
The minimum wage for tipped employees is $2.23. While employees can choose to share or pool tips, employers are not obligated to participate in these arrangements.
When multiple employees directly serve customers, the employer can mandate participation in a tip-sharing system, provided it does not take more than 15% of the primary tips received.
What Is the Delaware Overtime Minimum Wage Law?
The Delaware Office of Labor Law Enforcement is responsible for enforcing laws that ensure equitable working conditions, including the requirement for overtime pay. Under Delaware law, non-exempt employees must receive 1.5x their standard hourly wage for any hours worked beyond 40 in a single week. Similarly, the Fair Labor Standards Act mandates that non-exempt employees are compensated at 1.5x their regular rate for hours exceeding 40 per week.
Both state and federal wage regulations specify that non-exempt employees in administrative, professional, and executive roles must earn at least $684 weekly or $35,568 annually to qualify for these overtime rules. Eligibility for overtime compensation also depends on the specific job responsibilities of the employees.
Minimum Wage Poster Requirements
Under the FLSA, all Delaware employers are mandated to prominently display the 2024 Delaware Minimum Wage poster and other required labor law compliance posters. These must be placed in areas easily visible to all employees, such as break rooms or hallways. Employers who do not comply with this requirement may face penalties.
Exemptions in Minimum Wage Rate
In Delaware, certain employees are exempt from the standard minimum wage requirements. These exemptions include workers in agriculture, executive and administrative roles, and those employed by the United States Government. Other exempt categories are volunteer workers, domestic service employees, staff at non-profit summer camp programs, individuals participating in Department of Correction programs, outside commission-based salespeople, and those working in fishing and fish processing.
Furthermore, under the FLSA, Delaware employers can pay a reduced training wage to new employees under 20 years old who lack work experience. This training wage is $4.25 per hour and is applicable only during the first 90 days of employment. Additionally, full-time students who work part-time (no more than 20 hours a week) can earn 85% of the Delaware minimum wage.
Minimum Wage Guidelines and Compliance Strategies
Here are some tips to remember for your business when complying with the minimum wage rate in Delaware:
- Legal Obligations: As of January 1, 2024, businesses in Delaware’s food sector must ensure that the combined income of tipped employees, from cash wages and tips, meets or exceeds $13.25 per hour.
- Tip Credit Allowance: Under Delaware regulations, businesses can apply as much as $11.02 per hour of an employee’s earned tips towards satisfying the minimum wage obligation.
- Minimum Cash Wage Requirement: Businesses must pay tipped employees a direct cash wage of at least $2.23 per hour.
- Payroll Auditing: Regularly review payroll methods to verify compliance with tipped employees’ minimum hourly wage requirement of $13.25.
- Educating Employees: Inform your staff about their rights regarding wages and explain how their total earnings are calculated, including the separation of cash wages from tips.
- Handling Wage Gaps: Establish a straightforward protocol for situations where an employee’s earnings from tips and cash wages fall below the minimum wage, ensuring issues are resolved quickly and transparently.
- Wage and Tip Documentation: Keep detailed records of all wages and tips for each employee to adhere to state wage regulations and assist with any reviews conducted by labor authorities.
Conclusion
In 2024, Delaware’s minimum wage will rise to $13.25 per hour, marking a 13% increase. This change is part of the state’s broader strategy to reach a $15 minimum wage by 2025, reflecting ongoing efforts to improve wages for all workers, including younger employees and trainees. Tipped workers will continue with a minimum cash wage of $2.23 per hour, with provisions for tip sharing.
Delaware employers must comply with these updated wage laws, including overtime pay requirements and the display of updated labor law posters. While certain exemptions apply, businesses should ensure they meet all legal obligations and maintain clear records. These steps are crucial for adhering to the new wage standards and effectively supporting Delaware’s workforce.
Frequently Asked Questions
What is the minimum wage in Delaware for 2024?
In 2024, the minimum wage in Delaware is $13.25 per hour. This rate applies to most employees in the state, with specific exceptions such as tipped employees, certain student workers, and other exempt occupations.
Are there plans to increase the minimum wage in Delaware in the future?
Yes, Delaware has planned further increases in the minimum wage. Following the 2024 rate of $13.25 per hour, the wage will rise to $15.00 per hour effective January 1, 2025.
Does Delaware adhere to the federal minimum wage?
Delaware’s minimum wage is $7.25 per hour, which is higher than the federal minimum. Therefore, Delaware employees are entitled to the higher state minimum wage.
What should Delaware employers know about wage regulations?
Delaware employers must comply with state wage laws, including regulations on minimum wage, tip pooling, and service charges. For example, employers are not allowed to keep service charges unless they provide clear and conspicuous notice to customers that these are not gratuities but are retained by management. Also, employers must pay the state minimum wage unless the employee or occupation is specifically exempt under state or federal law.
