Delaware’s New Pay Transparency Requirements to Take Effect in 2027

Quick Hits

• Delaware’s governor signed into law legislation that will require employers to include wage ranges and benefits information in job postings starting in 2027.
• The law applies to employers with more than twenty-five employees and does not affect interim or temporary jobs immediately needed for hire.
• Employers found in violation of the requirements could face civil penalties ranging from $500 to $10,000.

Newly enacted House Substitute No. 2 for House Bill (HB) No. 105 will require employers with more than twenty-five employees to “include the hourly or salary compensation range and a general description of the benefits and other compensation” in both internal and external job postings or announcements.

Specifically, the “hourly or salary compensation range” must include a “minimum to maximum pay range for the position[s] … set in good faith,” the “actual range of others currently holding equivalent positions,” or “the budgeted amount for the position.” The requirements apply to postings for jobs located in Delaware and non-international remote positions offered by employers based in the state.

The law also requires an employer to provide pay and benefits information to an applicant prior to any discussion of compensation, and at any time upon the applicant’s request, if this information has not already been shared via a job posting.

Exceptions

The law’s posting requirements do not apply to interim or temporary jobs that need to be filled immediately. The law states that the Delaware Department of Labor may “promulgate regulations for temporary, interim, or acting job opportunities that necessitate immediate hire.”

Under the law, an employer will not be held liable for “job postings that are digitally replicated and published without the employer’s consent,” and a third party that posts or reposts a job opportunity will not be subject to liability.

Further, the law will not apply to job opportunities covered by a collective bargaining agreement (CBA) until after the CBA is amended, giving parties an opportunity to contemplate the pay transparency requirements during negotiations.

Enforcement

The Delaware Department of Labor will enforce the pay transparency requirements through administrative proceedings. Job applicants and employees will be able to appeal those orders to the state court. Notably, the law states that the “breadth” of the listed pay range on the job posting is a factor used to determine whether an employer has complied in good faith with the pay transparency disclosure requirements.

Employers found to have violated the pay transparency law will receive a “written warning” for a first offense and could face civil penalties of between $500 and $10,000 for each subsequent violation.

Next Steps

Delaware’s pay transparency law, which takes effect in September 2027 (two years after enactment), comes as several states and local jurisdictions have enacted similar job posting and pay transparency requirements in recent years. Such laws create new obligations for employers and increase liability for technical deficiencies in job postings.

Employers in Delaware or those posting job opportunities to be filled may want to review their job posting policies and ensure that postings will comply with the new pay transparency requirements. They may further wish to audit their current compensation practices, including the establishment and maintenance of pay ranges.

Ogletree Deakins’ Pay Equity Practice Group will continue to monitor developments and will provide updates on the Delaware, Pay Equity, and Workforce Analytics and Compliance blogs as additional information becomes available.

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