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Delaware Training Wage and Minimum Wage Updates

09/01/18

Author: ADP Admin/Thursday, August 30, 2018/Categories: State Compliance Update, Delaware

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 as of January 1, 2019.

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 


Action Required: Employers should ensure compliance with the above laws.

Please be sure to contact your Payroll Service Representative or Human Resources Business Partner if you have any questions.

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.

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