Delaware
Make employment in Delaware easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Delaware, all in one easy-to-use platform.
- Capital City
Dover
- Currency
United States Dollar ($, USD)
- Population size
10,00,000
Facts & Stats
- Capital City
Dover
- Currency
United States Dollar ($, USD)
- Population size
10,00,000
- VAT - standard rate
N/A
Despite its relatively small size, Delaware is a significant state for many US-based and global organisations.
Famous for its business-friendly tax and administration policies, the First State is the corporate home of many major players, providing a unique landscape for entrepreneurs and professionals. With its coastal charm, storied history, and close proximity to some of the US’s biggest cities, it's a highly sought-after destination for employees and employers alike.
Grow your team in Delaware with Remote
If you want to hire in Delaware, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.
We can employ top talent in Delaware on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Delaware through Remote.
Risks of misclassification
Delaware, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Delaware may lead to fines and penalties for the offending company.
Employing in Delaware
In Delaware, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Delaware.
Hours of work in Delaware
Work and overtime laws in Delaware are laid out in the state’s labour and administrative codes.
What is considered full-time employment in Delaware?
Under state law, full-time employment is between 35 and 40 hours per week.
Do pay employees get overtime in Delaware?
Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Delaware, the pay threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal pay threshold for exemption is currently being reviewed in the US.
In Delaware, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Delaware.
Hours of work in Delaware
Work and overtime laws in Delaware are laid out in the state’s labour and administrative codes.
What is considered full-time employment in Delaware?
Under state law, full-time employment is between 35 and 40 hours per week.
Do pay employees get overtime in Delaware?
Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Delaware, the pay threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal pay threshold for exemption is currently being reviewed in the US.
Minimum wage in Delaware
The minimum state wage for private sector employees is currently $13.25 per hour, although this will rise to $15 in January 2025.
Onboarding timeline in Delaware
We can help you get your new employee started in Delaware fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Payroll cycle in Delaware
Under state law, employees must be paid at least once per month.
For Remote customers, employee payments are made twice per month in equal instalments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Effortless HR in Delaware: Take the Tour
Are employers required to provide health insurance in Delaware?
Under the federal Affordable Care Act, organisations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Are employers required to offer 401k in Delaware?
The state is currently in the process of mandating qualified savings plans for private sector employees.
Under this legislation, you will need to enrol your employees into the state-sponsored Delaware EARNS Program (or another recognised retirement plan).
Note that this will only apply if your business:
Has five or more employees
Has been a registered business for at least six months
This legislation is set to become active in 2025.
Competitive benefits in Delaware
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Delaware labour market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Delaware usually include some or all of the following:
Pension or 401(K)
Medical insurance
Vision insurance
Health Saving Plan (HSA)
Long term disability insurance (LTD)
Dental insurance
Life insurance
Flexible Spending Account (FSA)
Taxes in Delaware
Taxes in Delaware
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Delaware.
Note that your employees may also be liable for additional local taxes in certain areas, such as Wilmington.
Employer taxes
Employment Tax | |
|---|---|
6% | Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year) |
0.1% to 5% | State unemployment insurance tax (SUTA) |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Employee taxes
Payroll Tax | |
|---|---|
10% to 37% | Federal income tax |
2.2% to 6.6% | State income tax |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Types of leave
Holiday | In Delaware, there is no state or federal law that requires employers to provide paid or unpaid holiday leave to their employees. However, many employers offer 10 days of paid leave after the first year of employment. |
Sick leave | In Delaware, there is currently no state or federal law that requires employers to provide paid sick leave to their employees, although some organisations do. However, the state’s Healthy Delaware Families Act (HDFA) was passed in 2022 and will be implemented in 2025. Under this law, employees will be entitled to up to 12 weeks’ paid leave for medical and family reasons. Can an employer deny sick time in Delaware? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius |
Parental and maternity leave | Under the FMLA, employees are entitled to up to 12 weeks of unpaid maternity or paternity leave. Some organisations opt to pay a reduced pay during this period. Note that, from January 2025, employees will be entitled to paid parental leave under the HDFA. |
Bereavement leave | Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave. |
Jury duty | Employees must report for jury duty if summoned (unless exempt). Jurors are typically on call for two weeks. Do employers have to pay for jury duty in Delaware? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalise or terminate an employee on jury duty. Some employers provide paid leave. |
Military leave | Under federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service. |
Employment termination
Termination process
Like nearly all US states, Delaware is an at-will state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Notice period
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organisation.
Severance pay
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused holiday time, unless stipulated in the employment agreement.
Probation periods
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.