Overview: Delaware raises minimum wage to $8.75 per hour and creates a training minimum wage and a youth wage that is not more than $0.50 less than the minimum wage rate.

Effective Date: January 1, 2019

Details:

It was recently reported that on July 1, 2018 Delaware Governor John Carney signed legislation (SB 170) that increases the state minimum wage rate from the current level of $8.25 per hour as follows:

October 1, 2018 $8.75 per hour

October 1, 2019 $9.25 per hour

It is important to note that SB 170 did not adjust the minimum cash wage for tipped employees, which remains at $2.23 per hour.

Another piece of legislation was also enacted (HB 483) in Delaware that stipulates that effective January 1, 2019, an employer may pay a training wage to an employee who is 18 years of age or older, during the first 90 consecutive calendar days of employment, at a rate up to 50¢ less than the state minimum wage rate. Employees under the age of 18 may be paid a youth wage at a rate up to 50¢ less than the state minimum wage rate. The increase in the state minimum wage to $8.75 is effective January 1, 2019 for these employees.

HB 483 also contains a provision that delays the increase in the minimum wage. Consequently, although SB 170 says the first minimum wage increase will occur on October 1, 2018, HB 483 contains a provision that delays the increase until January 1, 2019. Accordingly, both of SB 170’s minimum wage increases will occur in 2019 as follows:

January 1, 2019 $8.75 per hour

October 1, 2019 $9.25 per hour

Section Title 19 902(a)(3) as amended by SB 170 states:

(a) Except as may otherwise be provided under this chapter, every employer shall pay to every employee in any occupation wages of a rate:…

(3) Not less than $8.75 per hour effective October 1, 2018;

Section Title 19 902(a)(3) as amended by HB 483 states:

Section 3. The provisions of § 902 (a)(3) of Title 19 take effect January 1, 2019.

For a copy of SB 170 please click on the link provided below.

https://legis.delaware.gov/BillDetail?LegislationId=26445

For a copy of HB 483 please click on the link provided below.

https://legis.delaware.gov/BillDetail?LegislationId=27033

Call to Action: Employers should ensure compliance with the above laws. Please contact your Service Team with any questions.