Understanding overtime laws in Delaware is essential for ensuring fair pay and legal compliance in the workplace. While Delaware labor laws do not have extensive state-specific rules for overtime pay, federal regulations apply to most non-exempt workers.
This article covers key topics such as Delaware overtime pay rates, who qualifies for overtime, and how it applies to tipped and holiday workers. It also explains rules around compensatory time, common exemptions, and the time limits for filing unpaid overtime claims.
Delaware Overtime Laws Summary
| State overtime law | None |
| Federal law | FLSA provisions for overtime |
| Overtime pay | 1.5 times the regular hourly wage for all hours worked over 40 in a workweek |
| Minimum wage | $15.00 per hour |
| Minimum overtime wage | $22.50 per hour for minimum wage workers |
| Compensatory time instead of overtime pay | Allowed for certain exempt and non-exempt state employees |
| Salary threshold for overtime exemption | $684/week |
This Article Covers
- Overtime Pay Rates in Delaware
- Who is Entitled to Overtime Pay in Delaware?
- Overtime Exemptions in Delaware
- Compensatory Time in Delaware
- Overtime Pay for Working on a Holiday in Delaware
- Overtime Pay for Tipped Employees in Delaware
- Overtime Pay for Salaried Employees in Delaware
- Recordkeeping Requirements for Employers in Delaware
- Penalties for Violating Overtime Laws in Delaware
Overtime Pay Rates in Delaware
Employees in Delaware who work over 40 hours per week are entitled to overtime pay at time-and-a-half (1.5) of their regular rate of pay for every additional hour worked under federal law.
Since the regular minimum wage in Delaware is $15.00 per hour, this means Delaware’s minimum overtime pay rate is $22.50 per hour (1.5 x $15).
Employees earning more than $15.00 per hour will have their overtime calculated based on their regular hourly rate.
For example, if an employee’s hourly rate is $20 per hour, their overtime pay rate will be:
$20 x 1.5 = $30 per hour
For a deeper understanding of your overtime rights, read our detailed article on overtime rights in Delaware.
What counts as hours worked for overtime calculations?
For overtime calculations, an employee’s “hours worked” include all periods when they must be present at the job site, remain on duty, or carry out tasks connected to their employment.
Under the Fair Labor Standards Act (FLSA), extra pay is not automatically triggered by work on weekends, holidays, or scheduled days off. Overtime applies only when total hours exceed 40 within a single workweek.
What is a workweek under the FLSA?
A workweek is a set span of 168 hours (seven consecutive 24‑hour days) that can begin on any day and at any time chosen by the employer. Each workweek stands alone for wage and overtime purposes, so employers cannot average hours across multiple weeks.
Who is Entitled to Overtime Pay in Delaware?
Delaware does not have its own specific overtime laws. Instead, it follows the federal overtime law established by the Fair Labor Standards Act (FLSA).
As per FLSA guidelines, employees who earn less than $684 a week ($35,568 annually) and work in a non-exempt industry are entitled to overtime pay in Delaware.
However, an employee’s overall eligibility for overtime pay in Delaware will be based on their actual job duties and the type of business they are in.
Overtime Exemptions in Delaware
In Delaware, the regulations regarding overtime exemptions follow the guidelines set by the Fair Labor Standards Act (FLSA).
According to the FLSA, most covered employees should receive overtime pay. However, employees in executive, administrative, and professional positions are exempt from these overtime pay requirements.
To be exempt from overtime, employees must satisfy specific job duty criteria and be compensated on a “salary basis” of $35,568 per year (or $684 per week).
Highly compensated employees earning $107,432 per year, including at least $684 per week paid on a salary or fee basis, and computer employees earning $27.63 per hour may also be exempt.
Additional overtime exemptions apply to certain occupations, including:
- Outside sales employees
- Some commissioned retail or service employees
- Motor carrier employees (drivers, loaders, mechanics, etc.)
- Small farm workers
- Automobile dealership salesmen, partsmen, and mechanics
- Seasonal and recreational establishment employees
- Aircraft and boat salespeople
- Airline employees
- Country elevator workers
- Live-in domestic employees
- Farm implement salespeople
- Federal criminal investigators
- Firefighters and police officers in small public departments
- Fishing industry workers
- Forestry and lumber employees of small firms
- Fruit and vegetable transportation workers
- Homeworkers producing wreaths
- Houseparents in nonprofit educational institutions
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Motion picture theater employees
- Newspaper delivery workers and employees of limited-circulation newspapers
- Radio and television station employees in small markets
- Railroad employees
- Seamen on American and non-American vessels
- Sugar processing workers
- Switchboard operators
- Taxicab drivers
- Truck and trailer salespeople
Check out the FLSA guide for a complete list of exemptions from overtime laws.
Compensatory Time in Delaware
Compensatory time off, or “comp time,” allows employees to receive paid time off instead of overtime pay. In Delaware, comp time policies primarily apply to all state employees, except the following:
- Collective bargaining employees who have negotiated comp time in their agreements
- School district employees
- Higher education employees
Each state agency determines whether overtime for eligible employees will be compensated through cash payments or compensatory time.
Comp Time Earned By Non-Exempt Employees in Delaware
Employees classified as non-exempt under the FLSA are eligible for overtime compensation. Compensatory time may be earned in the following situations:
- Standard workweek of 37.5 hours: Employees earn straight-time comp time for hours worked between 37.5 and 40 hours in a workweek.
- Hours worked over 40 in a workweek: Employees earn compensatory time at time and a half (1.5×) for hours worked beyond 40 hours.
- Severe weather or emergency closures: Essential employees who work during official closures may earn equal time off at the straight-time rate. This time is granted only for hours worked during their regular schedule or within the official closure period.
- Weeks containing a state holiday: Employees may earn comp time for additional hours worked beyond their regularly compensated hours during a week that includes a state holiday.
FLSA non-exempt employees cannot use alternative work schedules that exceed 40 hours in a workweek.
Merit Comp Time Earned By Exempt Employees in Delaware
Merit compensatory time applies to FLSA-exempt employees, who are not normally eligible for overtime pay. This earned time must be used within 180 calendar days of accrual; otherwise, it will be forfeited.
Exempt employees in Delaware may earn merit comp time under the following circumstances:
- Preapproved additional work time exceeding 30 minutes beyond the standard workday
- Hours exceeding 75 or 80 hours in a standard pay period, earned at the straight-time rate
- Essential employees working during severe weather conditions or emergencies, who earn equal time off at the straight-time rate for hours worked during their scheduled work hours or shifts that fall within the specified hours of closure
- Preapproved additional hours worked during a week containing a State holiday
In limited cases under Merit Rule 4.13.8, certain exempt employees may earn compensatory time at 1.5 times their regular rate for hours worked beyond 40.
Additional Rules for Comp Time in the State of Delaware
Here are some key points to note from the comp time policy for state employees in Delaware:
- Employees may accumulate a maximum of 240 hours of compensatory time.
- Public safety employees may accumulate up to 480 hours.
- Casual or seasonal employees are not eligible for merit comp time.
- Unused comp time for non-exempt employees must be paid out when they transfer, are promoted, or leave state service.
- Unused merit comp time for exempt employees is forfeited upon transfer, promotion, or separation.
Overtime Pay for Working on a Holiday in Delaware
In Delaware, certain state employees may receive both holiday pay and overtime compensation when they work on an official state holiday. However, the exact pay depends on the employee’s overtime eligibility and work schedule.
Employees who work on a holiday and qualify for both holiday pay and overtime will be paid 1.5 times their regular rate for the hours actually worked on the holiday, plus separate holiday pay based on a set formula.
If an employee is eligible for holiday pay but not usually eligible for overtime, they will still receive proportionate holiday pay, and the hours worked on the holiday will be paid at their regular rate, unless the Director of Human Resources (DHR) Secretary approves a higher rate.
If working on a holiday results in additional hours beyond an employee’s regular schedule, the agency may compensate those hours through:
- Cash payment,
- Compensatory time off, or
- A combination of both, depending on agency policy
To learn more, check out Delaware’s guide for holiday work pay.
Overtime Pay for Tipped Employees in Delaware
A “tipped employee” in Delaware is an employee who typically receives over $30 in tips per month as part of their regular job responsibilities.
Delaware allows a tip credit, which means employers can pay tipped employees a minimum cash wage of $2.23 per hour, as long as tips bring their total earnings up to at least the state’s minimum wage of $15.00 per hour.
This means the employee must earn at least $12.77 per hour in tips.
If an employee’s tips are not enough to bring their total earnings up to the required minimum wage in Delaware, the employer must make up the difference.
Tipped employees in Delaware are also entitled to overtime pay for any hours worked beyond 40 in a workweek under the FLSA. Overtime must be calculated using the full minimum wage, rather than the lower tipped cash wage of $2.23 per hour.
Example:
Minimum wage: $15.00 per hour
Minimum overtime rate: 1.5 × $15.00 = $22.50 per hour
Employers cannot apply a larger tip credit to overtime hours than they do to regular hours.
Additionally, employers are not permitted to keep any portion of employees’ tips or require workers to share tips with managers or supervisors. Tip pooling may be allowed in some workplaces, but it typically must involve employees who regularly receive tips, such as servers or bartenders.
Overtime Pay for Salaried Employees in Delaware
Salaried employees receive a fixed amount of pay each pay period, regardless of the exact number of hours they work. In most cases, this salary cannot be reduced based on the quantity or quality of work performed, and employees must receive their full salary for any week in which they perform work.
For salaried employees in Delaware who are non-exempt under the Fair Labor Standards Act (FLSA), overtime pay is determined using their regular hourly rate. This rate is calculated by dividing the employee’s weekly salary by the number of hours the salary is intended to cover.
Example:
If an employee earns $720 per week for a 36-hour workweek, their regular hourly rate is $20 per hour ($720 / 36). If the employee works more than 40 hours in a workweek, they must receive 1.5 times their regular rate for those additional hours.
- Regular rate: $20 per hour
- Overtime rate: $30 per hour (1.5 × $20)
If a salary covers fewer than 40 hours per week, the employee is paid their regular hourly rate for additional hours worked up to 40. Overtime pay only begins once the employee exceeds 40 hours in a workweek.
Use our overtime calculator to estimate overtime hours and wages, and explore other salaried employee rights in Delaware.
Recordkeeping Requirements for Employers in Delaware
Employers in Delaware are required to keep accurate employee records for at least three years. These records must include key details such as:
- Employee name, address, and job title
- Rate of pay
- Total wages paid each pay period
- Hours worked each day and each workweek (important for tracking overtime)
The Delaware Department of Labor may also require employers to maintain additional records if needed to enforce wage and hour laws.
Businesses are free to use any reliable timekeeping method, whether manual records, spreadsheets, or digital systems, as long as employee work hours are tracked accurately. Many employers use time tracking software to automatically log hours, calculate overtime, and maintain organized records for compliance.
Using a dedicated time tracking tool like Jibble can make it easier to monitor daily and weekly hours, generate payroll-ready reports, and ensure overtime calculations align with wage and hour regulations.
Penalties for Violating Overtime Laws in Delaware
If an employer refuses to pay required overtime, employees can file a complaint with the Delaware Department of Labor’s Wage & Hour Office.
Employers in Delaware who do not pay employees the wages or overtime they are legally owed can face civil fines ranging from $1,000 to $5,000 for each violation.
If an employer punishes, fires, or discriminates against a worker for filing a wage or overtime complaint, cooperating with investigators, or testifying in a wage-related case, they may also be fined $1,000 to $5,000 per violation.
Employers who issue fake pay statements or receipts claiming wages were deposited when they were not are subject to civil penalties of $1,000 to $5,000 per violation.
These civil penalty claims can be brought before any court with proper jurisdiction.
Also read: $5M settlement ends long-running overtime dispute in Delaware
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
