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Delaware’s new Pay Transparency Law: What employers need to know before 2027

4/15/26

By: Kaela Colyar

Delaware has joined a growing list of jurisdictions mandating pay transparency in job postings, adopting legislation that will take effect on September 26, 2027. The law imposes new disclosure and recordkeeping obligations on employers and reflects a broader nationwide trend toward increased compensation transparency. Delaware-based employers, particularly those operating across multiple jurisdictions, should begin preparing now to ensure compliance.

Broad reach of Delaware’s Pay Transparency Law

Beginning in September 2027, Delaware will require employers with more than 25 employees to include compensation-related information in job postings. The law applies to both for-profit and non-profit employers and extends to positions that are either based in Delaware or performed remotely elsewhere in the United States.

Notably, the law’s reach is not determined solely by where the employee performs the work. Instead, it applies to jobs located in Delaware as well as non‑international remote positions offered by employers based in Delaware. As a result, employers with a Delaware base may be subject to the law’s requirements even when recruiting for fully remote roles performed outside the state.

Required job posting disclosures

The law requires employers to include a good‑faith, general description of the compensation and benefits applicable to the position. Compensation ranges must likewise be set in good faith using objective reference points, such as an applicable pay scale, a previously determined range, the actual range of employees in comparable roles, or the budgeted amount for the position. The breadth of a stated range may be considered when evaluating compliance, underscoring the importance of defensible and well‑supported ranges.

For commission-based roles, employers must disclose that the position is commission-driven, though they are not required to provide detailed commission ranges. For positions involving tips, employers must disclose both the existence of tip opportunities and the base wage range. Where compensation is governed by a collective bargaining agreement, employers must disclose any compensation range that has been approved for public disclosure under the agreement.

These requirements are intended to provide applicants with meaningful insight into compensation structures while preserving some flexibility for employers.

Importantly, if an employer does not utilize a job posting, the law still requires that the employer provide the applicable compensation range and benefits information to an applicant before any discussion of compensation or upon the applicant’s request.

Recordkeeping obligations

In addition to disclosure requirements, the law imposes recordkeeping obligations. Employers must create and maintain records of job descriptions and wage or salary histories for each employee for at least three years. Because the statute does not specify whether the retention period runs from creation or termination, employers should consider retaining records for the duration of employment and at least three years thereafter. These records must be made available to the Delaware Department of Labor upon request.

This requirement underscores the importance of maintaining consistent and well-documented compensation practices, particularly in anticipation of potential regulatory review.

Enforcement and penalties

The statute establishes a tiered enforcement structure. Employers will receive a written warning for a first violation. Subsequent violations may result in civil penalties ranging from $500 to $10,000 per infraction.

The law also includes anti-retaliation provisions, prohibiting employers from restricting employees’ ability to discuss compensation or taking adverse action against employees who engage in such discussions.

The law does not create a private right of action.  Rather, enforcement authority rests exclusively with the Delaware Department of Labor.

Key statutory exceptions

The statute also includes several targeted exceptions that limit the scope of the posting requirements in specific circumstances. Temporary, interim, or acting positions that require an immediate hire are exempt, though the Delaware Department of Labor is authorized to issue regulations further defining that category. In addition, employers are not liable for job postings that are digitally replicated or published without their consent, and third parties that repost or distribute job opportunities are likewise not subject to enforcement under the law. Finally, for positions governed by a collective bargaining agreement, the posting requirements apply only after the agreement is executed, amended, modified, renewed, or replaced following the law’s effective date.

Practical employer takeaways

Delaware’s Pay Transparency Law presents both compliance challenges and strategic considerations for employers. In advance of the 2027 effective date, employers should:

• Review and update job posting templates to ensure required disclosures are included; 
• Evaluate compensation structures and ranges to ensure they can be articulated in good faith; 
• Audit recordkeeping practices to confirm compliance with the three-year retention requirement; 
• Train human resources personnel and hiring managers on permissible communications regarding compensation; and
• Consider how multi‑state operations may trigger overlapping or inconsistent pay transparency obligations across jurisdictions. 

Bottom line

Although the law does not take effect until 2027, the lead time should not be viewed as an opportunity to delay. Instead, it provides a critical window for employers to proactively align their compensation practices, documentation, and hiring processes with evolving legal requirements.

Employers with Delaware operations, or those that may be deemed Delaware-based under the statute, should consult with experienced employment counsel to assess their exposure and develop a compliance strategy tailored to their workforce and operational footprint.

For more information on this topic contact Kaela Colyar at kaela.colyar@fmglaw.com or your local FMG attorney.

Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.