Payment of Wages: Delaware
Federal law and guidance on this subject should be reviewed together with this section.
Authors: E. Chaney Hall and Jennifer C. Wasson, Potter Anderson & Corroon LLP
- The term wages is specifically defined in the Delaware wage payment law. See Definition of Wages.
- Employers in Delaware may pay employees in cash. They also may pay employees by check, direct deposit or electronic paycard if certain conditions are met. See Wage Payment Methods.
- In Delaware, employees must be paid on regular paydays at least once a month. Employers must generally pay employees no later than seven days following the close of each pay period. See Pay Frequency.
- With employees' consent, Delaware law allows employers to make various deductions from employees' pay. Some types of deductions are prohibited. See Permitted and Prohibited Wage Deductions.
- Employers must provide employees written, itemized pay statements every payday. Each pay statement must contain specific information. See Pay Statement Requirements.
- Delaware employers with more than three employees must provide all employees with written notice at the time of hiring of their pay rate and the day, hour and place of payment. Employees must also be notified in writing any time this information changes. See Employee Notification Requirements.
- An employer is required to post a notice in the workplace. See Posting Requirements.
- In Delaware, a terminating employee must be paid final wages by the next regular payday. Special provisions apply to accrued benefits. See Termination Pay.
- After the death of an employee, employers must follow a specific set of rules in order to properly turn over any compensation owed to the deceased employee's estate or survivors. See Deceased Employee Wages.
- Wages that are unclaimed for five years are considered abandoned property. Employers must file an annual report of unclaimed wages with the state. Penalties are imposed for noncompliance. See Unclaimed Wages.