Pay transparency law awaits signature in Delaware

Delaware may soon join the group of states that require employers to include pay information in job postings. A pay transparency bill, H.B. 105, has passed the legislature and awaits signature by Gov. Matt Meyer.

The law would apply to any job located in Delaware, and to any non-international remote position offered by a Delaware-based employer. Employers with 25 or fewer employees would be exempt.

Covered employers would be required to include a pay range and general description of benefits and other compensation in any announcement or post advertising a job opportunity. Special requirements would apply to commission-based roles, tipped positions, and job opportunities covered by a collective bargaining agreement. Temporary, interim or acting positions requiring an immediate hire would be exempt from the job posting requirements.

If a job posting was not made available to an applicant, the employer would be required to share the pay and benefits upon the applicant’s request and before making an offer or otherwise discussing compensation.

The bill also contains recordkeeping requirements. Employers would be required to keep records of job descriptions and pay history for each employee for three years and make the information available to the Delaware Department of Labor upon request.

Unlike some pay transparency laws, the Delaware bill would not create a right for employees to learn the pay range for their current roles.

A first violation of the job posting requirements would result in a written warning. Subsequent offenses would be subject to civil penalties between $500 and $10,000 per violation.

If signed, the law will take effect two years after signing.