Labor & Employment

This Act establishes an automatic enrollment feature for newly hired state employees in the State’s 457(b) deferred compensation retirement plan. The Board may, through a plan amendment, modify the definition of a covered employee. Under the Act, a predetermined percentage of an employee’s salary will be automatically deducted from each paycheck and contributed to the 457(b) plan upon hire. This Act allows new employees to opt out at any time prior to the commencement of automatic withdrawals, which normally commences 90 days after hire. If an employee does not opt out of automatic enrollment during this 90-day period, the employee will be enrolled and contributions will commence. The employee will thereafter have an additional 30 days to opt out and request a refund of any contributions. Refund requests must be submitted no later than 120 days after the date of hire. Employees under a collective bargaining agreement are not subjected to auto-enrollment but are able to participate if should they elect to do so. This Act takes effect 10 days after the date of publication in the Register of Regulations of a notice from the State Treasurer that the Office of Management and Budget has certified to the State Treasurer that necessary payroll upgrades necessary to implement this Act have been completed.

This Act adds minor league baseball players to the existing exemptions from state minimum wage and recordkeeping standards. After minor league players formed a union in 2022, minor league players represented by the Major League Baseball Players Association (MLBPA) signed their first collective bargaining agreement with Major League Baseball (MLB) in 2023. This exemption actualizes that existing collective bargaining agreement between the players union and MLB.

Chapter 35 of Title 19 prohibits an employer from improperly classifying an individual who is an employee as an independent contractor. Not only is this improper classification unfair to employees because it violates state and federal laws related to income tax withholding, unemployment insurance, wage laws, and workers’ compensation, it is also unfair to contractors who comply with Chapter 35 and these other employment laws. When employers who violate Chapter 35 are subcontractors who have not registered as contractors as required under Chapter 36 of Title 19, the Department of Labor (Department) has no recourse for enforcing compliance with Chapter 35. This Act makes a general contractor responsible for a subcontractor’s compliance with Chapter 35 by making the general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. This Act also allows the Department to deny, suspend, or revoke the certificate of registration of a contractor who contracts with a subcontractor who has not registered on any project. In addition, Section 3 of this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Pay range transparency empowers job applicants with crucial information to negotiate salaries and make informed career decisions. It also encourages businesses to proactively review compensation practices, address unjustified pay disparities, and strengthen their ability to attract and retain top talent. This Act requires that employers include salary or wage range information and a general description of benefits in all postings for job opportunities, and ensures that applicants have access to that information prior to any offer or discussion of compensation. Employers are required to maintain records relating to job descriptions and wage rates for employees for at least 3 years. The Department of Labor may bring an administrative action to enforce the pay transparency provision. This Act does not apply to employers with 25 or fewer employees. The Act takes effect 2 years after its enactment. House Substitute No. 2 to House Bill No. 105 differs from House Substitute No. 1 to House Bill No. 105 as follows: It provides that where a job opportunity is covered by a collective bargaining agreement (CBA), the compensation or compensation range disclosed in a notification should be one that has been agreed upon for disclosure in the CBA itself. It provides that the pay transparency provision becomes applicable to postings for opportunities covered by a CBA only when the CBA is amended, modified, or renewed after the effective date of the Act, to give the parties opportunity to consider the disclosed range in the course of negotiating a CBA. It provides that an employer is not liable for job postings that are digitally replicated and published without the employer’s consent. It specifies that the pay transparency provisions in this section apply to Delaware-based jobs or non-international remote positions offered by an employer based in Delaware. It makes the record preservation requirement consistent with § 907 of Title 19.

The language of this Act is identical to Senate Bill No. 25 of the 153rd General Assembly. The only difference between this Act and Senate Bill No. 25 is the title, which has been changed to clarify that the language includes the Public Employment Relations Act of Title 19. This Act allows an employee organization to file a petition with the Board to become the exclusive representative of an appropriate bargaining unit for the purpose of collective bargaining. In the event an employee organization provides over 50% of the employees’ approval, through their authorized signatures, then the Board may not order an election but must certify the employee organization. This Act also makes technical corrections to confirm existing law to the standards of the Delaware Legislative Drafting Manual.

This Act addresses information and access rights relating to bargaining units, which are defined under existing law as groups of public employees designated by the Public Employment Relations Board as appropriate for representation by an employee organization for purposes of collective bargaining. Section 1 of the Act amends the Public School Employment Relations Act in Title 14 of the Delaware Code. It provides that a public employer must provide an exclusive bargaining representative with certain contact information of bargaining unit employees, (i) within 14 calendar days of their hiring and (ii) in January and October of each year, starting in January 2026. In addition, a public employer must allow an exclusive representative to communicate with bargaining unit members using their employer-issued email addresses regarding collective bargaining, the administration of collective bargaining agreements, the investigation of grievances, workplace-related complaints and issues, and internal matters involving the exclusive representative's governance or business. Section 2 of the Act makes these same amendments to the Public Employment Relations Act in Title 19 of the Delaware Code.