Payment of Wages: Delaware

Federal law and guidance on this subject should be reviewed together with this section.

Authors: E. Chaney Hall and Jennifer C. Wasson, Potter Anderson & Corroon LLP

Summary

• The term wages is specifically defined in the Delaware wage payment law. See Definition of Wages.
• In Delaware, wage theft committed by an employer is a criminal offense. See Wage Theft.
• Employers in Delaware may pay employees in cash. They also may pay employees by check, direct deposit or electronic paycard if certain conditions are met. See Wage Payment Methods.
• In Delaware, employees must be paid on regular paydays at least once a month. Employers must generally pay employees no later than seven days following the close of each pay period. See Pay Frequency.
• With employees' consent, Delaware law allows employers to make various deductions from employees' pay. Some types of deductions are prohibited. Employers that do not offer a retirement plan must register for and offer the Expanding Access for Retirement and Necessary Savings (EARNS) payroll deduction IRA program. See Permitted and Prohibited Wage Deductions.
• Employers covered by the state paid family and medical leave (PFML) insurance program (the Healthy Delaware Families Act) must withhold and remit contributions from the pay of covered employees to fund PFML benefits. See Paid Family and Medical Leave.
• Employers must provide employees written, itemized pay statements every payday. Each pay statement must contain specific information. See Pay Statement Requirements.
• Delaware employers with more than three employees must provide all employees with written notice at the time of hiring of their pay rate and the day, hour and place of payment. Employees must also be notified in writing any time this information changes. See Employee Notification Requirements.
• An employer is required to post a notice in the workplace. See Posting Requirements.
• In Delaware, a terminated employee must be paid final wages by the next date the wages would be normally paid or three business days after the last day the employee worked, whichever is later. An employer that agrees to pay or provide benefits or wage supplements to an employee upon termination must provide the benefits within 30 days after termination. See Final Pay.
• After the death of an employee, employers must follow a specific set of rules in order to properly turn over any compensation owed to the deceased employee's estate or survivors. See Deceased Employee Wages.
• Wages that are unclaimed for five years are considered abandoned property. Employers must file an annual report of unclaimed wages with the state. Penalties are imposed for noncompliance. See Unclaimed Wages.