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Delaware Enacts Pay Transparency Law

Delaware has enacted House Bill 105 (HB 105), which would require most employers to disclose pay ranges in job postings and retain wage-related documentation. The bill has passed both chambers of the state legislature and is awaiting the Governor’s signature. If signed, the law will take effect two years after enactment, anticipated as early as June 30, 2027, providing employers with significant lead time to prepare for compliance. 

Key Provisions of HB 105 

  • Covered Employers. The law applies to employers with 26 or more employees. Those with 25 or fewer employees are exempt; however, small employers may still consider adopting similar practices voluntarily to support pay equity and recruitment transparency. 
  • Pay Range and Benefits Disclosure. Covered employers will be required to include a wage or salary range in all job postings and a general description of benefits, including internal postings for remote positions, promotion, or transfer opportunities. 
  • Recordkeeping Requirements. Employers must create and retain records of job descriptions and wage rates for each employee during employment and for three years after the employee’s termination. 

Next Steps for Employers 

While the law is not yet in effect, employers are encouraged to use the two-year lead time to prepare for compliance. Begin by reviewing current job posting practices, both internal and external, to ensure consistency in how wage or salary ranges could be disclosed. Organizations should also evaluate their existing compensation structures to confirm that ranges are justifiable, accurate, and aligned with job descriptions. 

In addition, employers should establish internal processes for documenting and storing job descriptions and wage rates. These records must be maintained during an employee’s tenure and for three years following termination. Human resource personnel, hiring managers, and supervisors should be trained in the new requirements and updated procedures to ensure readiness. Conducting a proactive audit of current pay practices may also be helpful in identifying any disparities or misalignments that should be addressed in advance of the law’s effective date. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.