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Delaware's Pay Transparency Law: What HR Professionals Need to Know

Update Delaware's New Pay Transparency Law: A Bold Move for Fairness On September 26, 2025, Delaware Governor Matt Meyer signed into law a revolutionary move toward workplace equity—House Bill 105, or the Pay Transparency Law. Set to take effect in September 2027, this law mandates that organizations with 25 or more employees disclose pay ranges and benefits in all job postings. Such transparency aims to address hiring bias and wage gaps, particularly impacting those from marginalized backgrounds. Understanding the Core Requirements Under the new law, employers will be required to include a pay range and a brief description of benefits in job postings, whether these positions are based in Delaware or are remote roles offered by Delaware-based companies. Notably, this law requires employers to present this compensation data before engaging in any salary discussion with job applicants—substantially altering the hiring landscape. Addressing Exceptions and Penalties This progressive law isn’t without exceptions. Positions that are interim or require immediate filling, as well as roles governed by collective bargaining agreements (unless amended to include these transparency measures), are exempt from these rules. Additionally, breaches of the law will trigger penalties, starting with a warning for first-time offenders followed by fines that can escalate up to $10,000 for repeated violations. Why This Law Matters Now With the rise of remote work policies and changing dynamics in employee expectations, Delaware joins a growing number of states embracing pay transparency. As HR compliance officers and legal counsel know well, the benefits of this law extend beyond mere compliance. Transparency fosters trust within organizations and aligns better with the Equal Employment Opportunity Commission (EEOC) guidelines, paving the way for a fairer job market. Your Next Steps for Compliance Employers have a two-year window to adjust their hiring practices to meet these regulations. Now is the ideal time for companies to review job posting procedures, ensuring they align with both existing laws and the new requirements coming into effect. With other states already enforcing similar laws, being proactive in these changes will safeguard against future compliance issues. In conclusion, Delaware's Pay Transparency Law doesn’t just reflect a shift in labor laws—it signifies a commitment to equity in the workplace. As we move toward implementation, stakeholders need to consider the broader implications this law can have on workplace culture and diversity. For those in HR and compliance roles, embracing this transparency will be crucial navigating the evolving landscape of employment regulations.