Joining the growing number of states requiring disclosure of salary ranges, Delaware recently amended their Title 19, which covers labor, to add new pay transparency requirements (HB 105). This Act requires that employers include a salary or wage range, as well as a general description of benefits, in all job postings or for any other job opportunities (ex: promotions).
Who Does Delaware HB 105 Effect?
Employers with 26 or more employees must disclose a good faith pay range for both internal and external job postings. This Act is only related to Delaware-based jobs or non-international remote positions offered by an employer based in Delaware. However, the law does not specify if this 26-employee minimum includes only employees physically located in Delaware.
For job opportunities covered by a collective bargaining agreement (CBA), the compensation (or compensation range) disclosed should be one that has been agreed upon for disclosure in the CBA itself. Therefore, this pay transparency provision only becomes applicable to roles covered by a CBA when the CBA is amended, modified, or renewed after the effective date of the Act (September 26, 2027).
Temporary, interim, or acting job opportunities that require an immediate hire are exempt from these requirements.
An hourly or salary compensation range must be disclosed, along with a general description of the benefits and other compensation. If an employer makes known or announces but does not post a job opportunity, such as for a promotion, this information must still be provided prior to any offer or discussions of compensation. Compensation and benefits information must also be provided any time an applicant requests it.
The range should be set in a good-faith effort, with a minimum to maximum pay range for the position. A good faith range may be determined by a previous range for the position, the actual range others currently hold for equivalent positions, any applicable pay scale, or the budgeted amount for the position. Special rules apply to positions that are paid on a commission or tipped basis.
For recordkeeping purposes, employers must maintain records relating to these job descriptions and wage rates for employees for at least 3 years.
This Act will go into effect in 2 years (September 26, 2027).
Following the effective date, any employer who violates these requirements shall receive a written warning for their first offense. All other offenses will incur a civil penalty between $500-$10,000 per violation or act of retaliation.
Delaware employers should begin preparing for these changes by reviewing their pay practices now. This may involve conducting pay audits, developing or updating a compensation structure which includes pay grades or ranges, updating job postings, and training teams on the importance of pay transparency. Given the growing patchwork of state and local requirements, having expert help is important. Berkshire offers a full suite of Compensation Services – from external market benchmarking to pay equity analyses – to help you prepare.