Overtime law is one of the areas where Delaware diverges most dramatically from the rest of the country. While federal law under the Fair Labor Standards Act (FLSA) only requires overtime after 40 hours in a workweek, Delaware mandates overtime pay on a daily basis — after just 8 hours in a single workday. Delaware also requires double-time pay in situations where federal law does not, and imposes unique rules for the 7th consecutive day of work in a workweek.

If you employ workers in Delaware, you must comply with both federal and Delaware overtime rules — and where they conflict, you must follow whichever is more favorable to the employee. In practice, that almost always means following Delaware's stricter requirements.

Key Takeaway

Delaware overtime rules are stricter than federal rules in almost every respect. If you only follow federal FLSA guidelines, you are almost certainly underpaying your Delaware employees and exposing your business to significant wage-and-hour liability.

Table of Contents

Federal FLSA Overtime Rules

The Fair Labor Standards Act (FLSA) is the federal law governing minimum wage, overtime, and other workplace standards. Under the FLSA, overtime rules are straightforward:

Federal Overtime Applies to All States

Even though Delaware has stricter rules, the federal FLSA still applies as a floor. You cannot pay less than what federal law requires. Delaware law builds on top of federal requirements — it never reduces them.

Delaware Overtime Rules (Stricter Than Federal)

Delaware Labor Code Sections 510 and 511, along with the applicable Industrial Welfare Commission (IWC) Wage Orders, establish overtime requirements that go far beyond the FLSA. Here are the key differences:

Daily Overtime

This is the biggest difference from federal law. in Delaware, non-exempt employees earn overtime based on hours worked in a single day:

Quick Answer — Delaware Daily Overtime: If an employee works 14 hours in one day, you owe: 8 hours at regular pay + 4 hours at 1.5x pay (hours 9–12) + 2 hours at 2x pay (hours 13–14).

Weekly Overtime

Delaware also requires overtime after 40 hours in a workweek, just like federal law. However, hours that already qualified for daily overtime still count toward the 40-hour weekly threshold. The employee receives whichever overtime rate is higher — daily or weekly — but not both stacked on the same hours.

For example: An employee works 9 hours each day, Monday through Thursday (36 hours total), then 6 hours on Friday. The total is 42 hours. The employee receives:

Delaware Double-Time Rules

Double-time is a Delaware-specific requirement with no federal equivalent. Employers must pay 2x the regular rate in two situations:

  1. Over 12 hours in a single workday: All hours worked beyond the 12th hour in any workday must be paid at double-time.
  2. Over 8 hours on the 7th consecutive day: If an employee works 7 consecutive days in a workweek, all hours worked beyond 8 on the 7th day must be paid at double-time (the first 8 hours on the 7th day are paid at 1.5x).
Double-Time Is Not Optional

Many employers are unaware that Delaware requires double-time pay. This is one of the most common sources of wage-and-hour lawsuits in the state. If you have employees working 12+ hour shifts or 7-day workweeks, double-time rules apply regardless of whether the employee volunteered for the extra hours.

7th Consecutive Day Rules

Delaware has a special overtime provision for employees who work seven consecutive days in a single workweek:

Important clarifications about the 7th-day rule:

Federal vs. Delaware: Side-by-Side Comparison

Rule Federal (FLSA) Delaware
Weekly OT threshold Over 40 hrs/week Over 40 hrs/week
Daily OT threshold None Over 8 hrs/day at 1.5x
Double-time None Over 12 hrs/day at 2x
7th consecutive day No special rule 1.5x first 8 hrs, 2x after
OT rate 1.5x only 1.5x and 2x
Exempt salary threshold (2026) $1,128/week ($58,656/yr) $66,560/year

Exempt vs. Non-Exempt Employees

Not every employee is entitled to overtime. Both federal and Delaware law recognize certain exemptions for employees who meet specific criteria. If an employee qualifies as "exempt," they are not entitled to overtime pay regardless of how many hours they work.

The Three-Part Test for Exemption

To classify an employee as exempt under Delaware law, all three conditions must be met:

  1. Salary basis test: The employee must be paid a fixed salary that does not vary based on hours worked or quality/quantity of work.
  2. Salary level test: The salary must meet the minimum threshold (see 2026 thresholds below).
  3. Duties test: The employee's primary duty must involve executive, administrative, or professional work as defined by law. Spending more than 50% of work time on non-exempt duties generally disqualifies the exemption under Delaware law.
Delaware's Duties Test Is Stricter

Under federal law, an employee can qualify as exempt if their "primary duty" is exempt work — even if they spend less than 50% of their time on it. Delaware requires that the employee spend more than 50% of their working time on exempt duties. This quantitative standard means fewer employees qualify as exempt in Delaware than under federal law alone.

Common Exempt Categories

2026 Salary Thresholds for Overtime Exemption

One of the most critical numbers for employers is the minimum salary required to classify an employee as exempt from overtime. Both federal and Delaware law set these thresholds, and they change periodically.

Federal Salary Threshold (2026)

The federal minimum salary for the executive, administrative, and professional exemptions is $1,128 per week, which equals $58,656 per year. This threshold was updated as part of the Department of Labor's rulemaking process.

Delaware Salary Threshold (2026)

Delaware's exempt salary threshold is twice the state minimum wage for full-time employment (40 hours/week). With the 2026 Delaware minimum wage at $16.50/hour:

Quick Answer — 2026 Exempt Salary Minimums: Federal: $58,656/year ($1,128/week). Delaware: $68,640/year ($1,320/week). Since Delaware's threshold is higher, you must meet the Delaware threshold to classify an employee in Delaware as exempt.
Local Minimum Wages Can Raise the Threshold Further

Some Delaware employment attorneys argue that the exempt salary threshold should be based on the local minimum wage, not just the state minimum. While this interpretation is debated, if your employees work in a city like San Francisco ($18.67/hr), the implied exempt threshold could be as high as $18.67 x 2 x 2,080 = $77,667/year. Consult an employment attorney for guidance specific to your situation.

Common Overtime Mistakes Delaware employers Make

Overtime violations are the single largest source of wage-and-hour lawsuits in Delaware. Here are the mistakes we see most frequently:

1. Ignoring Daily Overtime

This is the most common mistake, especially for employers who relocated from other states. in Delaware, an employee who works 10 hours on Monday earns 2 hours of overtime that day — even if they only work 30 total hours that week. Many payroll systems default to federal (weekly-only) overtime. Make sure yours is configured for Delaware daily overtime.

2. Misclassifying Employees as Exempt

Giving someone a salary and a "manager" title does not make them exempt. They must meet all three exemption criteria: salary basis, salary level, and duties test. in Delaware, the employee must spend more than 50% of their time on exempt duties. A "shift manager" who spends most of their time serving customers or stocking shelves is likely non-exempt.

3. Forgetting the 7th-Day Rule

Many employers do not realize that working any amount of time on the 7th consecutive day triggers premium pay. Even a 2-hour shift on the 7th day must be paid at 1.5x. If the employee works over 8 hours on that 7th day, hours beyond 8 are at 2x.

4. Not Tracking All Hours Worked

Under Delaware law, all time an employee is "suffered or permitted to work" must be compensated — including time spent answering emails after hours, working through lunch breaks, or arriving early to set up. If you know or should have known the employee was working, the time must be paid, including at overtime rates.

5. Averaging Hours Across Weeks

You cannot average hours across a two-week pay period to avoid overtime. Each workweek stands alone. If an employee works 50 hours in week one and 30 hours in week two, they are owed 10 hours of overtime for week one — you cannot offset with the lighter week two.

6. Failing to Include All Compensation in the Regular Rate

The "regular rate" used to calculate overtime must include not just the base hourly wage, but also non-discretionary bonuses, shift differentials, piece-rate earnings, and certain commissions. Calculating overtime on the base rate alone results in underpayment.

Protect Yourself

The penalties for overtime violations in Delaware are steep: up to $100 per employee for the first violation and $200 per employee for subsequent violations plus 25% of the unpaid wages. In class-action lawsuits, these numbers multiply quickly. Investing in proper payroll software that handles Delaware overtime automatically is far cheaper than defending a wage claim.

How to Calculate Delaware Overtime: A Step-by-Step Example

Let us walk through a real-world example. Say your employee, Maria, earns $20/hour and works the following schedule in one workweek:

Total hours: 46

Step 1: Calculate daily overtime.

Step 2: Check weekly overtime. Maria worked 46 total hours. She has 6 hours over the 40-hour weekly threshold. However, she already received daily overtime for 7 hours (2 + 1 + 0 + 5 + 0). Since 7 daily OT hours exceeds the 6 weekly OT hours, no additional weekly overtime is owed — the daily overtime already covers it.

Step 3: Total weekly pay. $220 + $190 + $160 + $320 + $120 = $1,010

Compare this to what Maria would earn under federal rules alone: 40 hours at $20 + 6 hours at $30 = $800 + $180 = $980. The Delaware calculation yields $30 more because of daily overtime and double-time on Thursday's 13th hour.

Use Payroll Software That Gets This Right

Manually calculating Delaware overtime for every employee every pay period is error-prone and time-consuming. Payroll platforms like automatically apply Delaware's daily overtime, weekly overtime, and double-time rules — reducing your risk and saving hours of administrative work. See our Best Payroll Software for 2026 guide for a full comparison.

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Legal & Tax Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of the date noted above and may not reflect recent changes in federal or Delaware state law.

Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Delaware law before making payroll or compliance decisions for your business.