This Act creates a Delaware personal income tax subtraction for qualified overtime compensation that mirrors the federal deduction. Eligible workers can deduct up to $12,500 of qualified overtime pay ($25,000 for married couples filing jointly) from their federal taxable income. The deduction begins to phase out when federal modified adjusted gross income (MAGI) exceeds $150,000 for single filers ($300,000 for joint filers). Only the overtime premium portion (the extra pay above the regular hourly rate) qualifies for the deduction.
This Act creates a new tax credit in the amount of $15,000 for Delaware residents, applicable to overtime paid under the Federal Fair Labor Standards Act for compensation paid to workers that work over 40 hours in a week. The credit phases out for resident individuals earning $125,000 and joint filers earning $250,000, and is fully phased out for individuals earning $150,000 and joint filers earning $300,000.
This Substitute for House Bill No. 383 specifies by position title which Department of Transportation employees must be paid overtime after working 37.5 hours in a week beginning July 1, 2026.
This Act exempts from State income tax any income received by a full-time hourly wage-paid employee for overtime work performed in excess of 40 hours in a week. This exemption applies for taxable years beginning on January 1, 2026, and ending before January 1, 2028. This Act also requires each employer to provide information to the Division of Revenue about the total amount of overtime provided to full-time hourly wage-paid employees and the number of employees to whom overtime was paid in taxable years beginning January 1, 2025.
This Act establishes worker protections for employees who work in a warehouse distribution center. This Act requires employers to provide each employee with a written description of any quota the employee may be subject to during their scope of employment. This Act prohibits an employer from requiring an employee to meet a quota that would prevent the employee from being able to have meal and rest periods as required by Department of Labor standards. Adverse action may not be taken against an employee by an employer for failure to meet a quota that does not allow for meal and rest periods. The Act permits an employee to request a written description when they believe a quota prohibited them from receiving appropriate meal or rest periods. Any discriminatory or retaliatory action taken against an employee within 90 days of the employee making a written request or complaint creates a rebuttable presumption of retaliation by the employer. The Act establishes the Secretary of Labor’s authority to enforce and pass regulations to effectuate this Act, including remedies and relief available to the Department of Labor.
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.
