Delaware Enacts New Minimum Wage and Youth Wage Laws

08/01/18

Author: Jody Rodney/Thursday, July 26, 2018/Categories: Compliance Corner

Overview: Delaware raises minimum wage and permits employers to pay youth employees a “training wage” up to 50 cents less than the state minimum wage rate.

Effective Dates: October 1, 2018 (minimum wage) and January 1, 2019 (youth training wage).

Details: 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 171 did not adjust the minimum cash wage for tipped employees and that remains at $2.23 per hour.

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

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

In addition, another piece of legislation was enacted (HB 483) 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 minimum wage to $8.75 is also effective January 1, 2019 for these employees.

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

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

Call to Action: Please contact your Service Team with any questions.

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