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Minimum wage increases are gaining in popularity across the country. But with so many changing laws on the federal, state, and local levels, what’s actually happening where you live and work can get confusing.
We’ve got you covered on what’s happening next with the Delaware minimum wage and what you need to do as a small business owner to be prepared.
What is the minimum wage in Delaware?
The Delaware minimum wage is increasing to $13.25 an hour on Jan. 1, 2024, $6.00 higher than the federal minimum wage.
Effective December 29, 2021, there is no longer a training or youth wage. Employers in the State of Delaware must pay employees, including youth (14-17 years old), at least the state’s minimum wage. For employees who receive tips in Delaware, minimum wage is $2.23.
Will Delaware’s minimum wage change beyond 2024?
In late July 2021, Delaware Gov. John Carney signed a bill that will progressively raise the state standard minimum wage to $15 by January 1, 2025.
|Hourly wage rate
|January 1, 2022
|January 1, 2023
|January 1, 2024
|January 1, 2025
How should small business owners prepare for changes to the minimum wage?
We recommend taking the following steps to ensure you’re prepared:
- Reevaluate your staffing plan: Review your monthly sales and overhead costs to see if your current staffing levels are efficient. Depending on the size and type of business you own, it may make sense to reduce full-time staff throughout the year and hire contract employees during your busy seasons.
- Hire the right people: The hiring process is time-consuming and expensive. If your business is new, the first step is to get your free EIN. Next, make sure you follow best hiring practices, because finding the right fit the first time around saves you money in the long run. Once you have your team in place, focus on retaining valuable employees by creating plans for employee growth to keep them engaged.
- Upgrade your technology: Save time and money by streamlining tedious tasks. Small business payroll is much less of a hassle when you know how to easily avoid common payroll mistakes. Square makes it easy to learn how to do payroll yourself and simplify the process. This frees up time to focus on issues like staffing and growing your business.
While these are helpful guidelines to follow, you should discuss Delaware minimum wage laws with your accountant and lawyer to make sure your business is prepared and stays in compliance.