Hiring New Employees in Delaware: A Legal Guide

Create a clear job description that outlines the position's responsibilities, required qualifications, and compensation. Ensure the job posting complies with Delaware anti-discrimination laws and does not include any language that could be interpreted as discriminatory based on protected characteristics.

Develop an application form that collects necessary information from candidates while complying with Delaware employment laws. Avoid questions about age, race, religion, national origin, disability, or other protected characteristics. Include an at-will employment disclaimer and authorization to verify information provided.

Interview qualified candidates and select the best fit for the position. Ensure all interview questions comply with anti-discrimination laws. Document the selection process and reasons for hiring decisions to demonstrate compliance with equal employment opportunity requirements.

Draft an offer letter that includes the position title, start date, compensation, benefits, and at-will employment status (if applicable). In Delaware, clearly state that the employment relationship is at-will unless you intend to create a contract for a specific term.

If offering a contract rather than at-will employment, prepare a formal employment contract. Include terms of employment, compensation, benefits, termination conditions, confidentiality provisions, and any other relevant terms. In Delaware, employment contracts should be clear about duration and grounds for termination.

Create a non-disclosure agreement to protect your company's confidential information and trade secrets. In Delaware, NDAs are generally enforceable if they are reasonable in scope and duration and protect legitimate business interests.

If necessary for your business, draft a non-compete agreement. In Delaware, non-compete agreements are generally enforceable if they are reasonable in geographic scope, duration, and business interest. Delaware courts typically uphold reasonable non-competes that protect legitimate business interests.

Create a form that obtains the candidate's consent to conduct background checks. Under the Fair Credit Reporting Act and Delaware law, you must get written authorization before conducting background checks. The form should be clear, conspicuous, and separate from other documents.

After receiving signed authorization, conduct appropriate background checks in compliance with federal and Delaware laws. Be aware of limitations on using certain information (such as arrest records that didn't result in conviction) in making employment decisions.

Federal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of the employee's start date. Ensure you're using the current version of Form I-9 and properly examining the employee's identity and employment authorization documents.

Have the employee complete a federal W-4 form to determine federal income tax withholding. Use the most current version of the form available from the IRS.

Have the employee complete Delaware's Form W-4DE for state income tax withholding. Delaware has its own state withholding form that differs from the federal W-4.

Delaware law requires employers to report all newly hired employees to the Delaware State Directory of New Hires within 20 days of hire. This can be done online through the Delaware Division of Child Support Services or by submitting a New Hire Reporting Form.

If this is your first employee in Delaware, register with the Delaware Division of Unemployment Insurance. All employers in Delaware must pay unemployment insurance taxes if they have one or more employees for 20 weeks in a calendar year or pay wages of $1,500 or more in any calendar quarter.

Delaware law requires all employers to carry workers' compensation insurance. Obtain coverage through a private insurance carrier authorized to write workers' compensation insurance in Delaware or apply to become self-insured if you qualify.

Create a form for employees to authorize direct deposit of their paychecks. In Delaware, employers cannot require direct deposit unless it's a condition of hire that was disclosed to the employee before accepting the position.

Create forms for the employee to enroll in any benefits you offer, such as health insurance, retirement plans, or other benefits. Include clear information about eligibility requirements, coverage options, costs, and enrollment deadlines.

Create a form to collect emergency contact information from the new employee. This information is essential for workplace safety and emergency response.

Create or update your employee handbook to include all company policies, procedures, and expectations. In Delaware, be sure to include policies on at-will employment, anti-discrimination, anti-harassment, leave policies (including Delaware-specific requirements), workplace safety, and complaint procedures. Have the employee acknowledge receipt of the handbook.

Delaware employers must display certain posters in the workplace, including federal posters (FLSA, FMLA, OSHA, etc.) and Delaware-specific posters (minimum wage, discrimination, workers' compensation, unemployment insurance, etc.). Ensure all required posters are displayed in a conspicuous location accessible to all employees.

Provide comprehensive orientation for the new employee, covering company policies, procedures, benefits, and job expectations. Review the employee handbook and have the employee sign an acknowledgment form.

Ensure your payroll system is set up to properly withhold federal and Delaware state income taxes, Social Security, and Medicare taxes. Delaware has a graduated income tax rate ranging from 2.2% to 6.6%. Employers must also pay unemployment insurance taxes.

Set up a system to maintain required employment records. Under Delaware law, employers must keep certain records, including payroll records, for at least three years. Federal laws may require longer retention periods for certain documents.