Delaware compliance for talent acquisition companies

Comprehensive, state-specific research on Delaware compliance requirements for talent acquisition companies (staffing agencies, recruitment firms, RPOs). Key findings and practical guidance are summarized below, followed by an actionable compliance checklist and authoritative links.

Summary of key findings (concise): - State licensing: Delaware does not require a specific state-level employment agency, staffing agency, talent agency, nurse staffing, staff leasing, or PEO license. Businesses should still confirm local or industry-specific licensure and comply with other state laws. (Authoritative sources: HarborCompliance, Wolters Kluwer.) - Employer registration and tax setup: New employers should register via Delaware One Stop to set up accounts with the Division of Revenue (business taxes), the Division of Unemployment Insurance (UI/employer account), and the Office of Workers’ Compensation.

The Department of Labor’s OneStop is the central registration gateway. (Delaware DOL/OneStop; Division of Revenue.) - Wage & hour, postings, and recordkeeping: Delaware enforces state wage-and-hour and labor laws through the Department of Labor (Industrial Affairs).

Specific requirements include minimum wage, overtime, payday standards, and required workplace postings. Employers must retain certain employment records. (Delaware DOL – Industrial Affairs / Wage and Hour.) - Pay transparency (job postings): HB 105 (House Substitute No. 2 for HB 105), signed Sept 26, 2025, requires employers with 26+ employees to include hourly or salary compensation ranges and a general description of benefits in job postings for positions located in Delaware and certain remote jobs offered by Delaware-based employers.

The law takes effect two years after enactment (effective September 2027). It requires recordkeeping (job descriptions and salary/wage history) for at least 3 years and authorizes civil penalties for violations; the Department of Labor enforces the law.

Employers should begin auditing pay practices, job postings and third-party recruiter contracts now. (Legislature and several law-firm analyses.) - Delaware Paid Leave: Delaware’s statewide Paid Leave program (Paid Family & Medical Leave) is implemented by the Delaware Department of Labor; the DOL published that employees can file claims beginning January 1, 2026 and employers with 10+ employees must participate.

Talent-acquisition businesses that are employers (or co-employ through PEO arrangements) must understand contribution, notice, and claims procedures. (Delaware DOL Paid Leave.) - Unemployment insurance & workers’ compensation: Employers must register for UI and obtain/maintain workers’ compensation coverage per state rules.

OneStop registration links these employer obligations. UI taxes and workers’ comp responsibilities apply to staffing agencies and to client arrangements depending on how workers are classified (employee vs contractor vs leased employee). (Delaware DOL / Division of Unemployment Insurance; DOL OneStop.) - Background checks, FCRA & anti-discrimination: Criminal-history and consumer-report checks are regulated federally (FCRA) and by EEOC guidance; Delaware enforces anti-discrimination through its Industrial Affairs / Office of Anti-Discrimination.

Employers must ensure background-screening policies comply with FCRA disclosure/consent & adverse-action rules and avoid discriminatory hiring practices. Delaware may have “fair chance” considerations; review local DOL/anti-discrimination guidance before implementing blanket exclusions based on criminal history. (Delaware DOL anti-discrimination pages; federal FCRA/EEOC guidance recommended.) - Independent contractor classification: No single Delaware licensing regime governs classification — employers must carefully apply federal and state tests and consider Delaware UI and tax guidance when deciding classification.

Misclassification risks include back taxes, UI and workers’ comp liabilities, and penalties. Use Delaware OneStop and Division of Revenue resources and consult counsel for complex arrangements. - Data privacy & candidate data: Delaware does not impose a staffing-specific privacy regime beyond general state and federal consumer/data-protection laws; staffing firms must comply with FCRA for consumer reports, protect PII, and follow contractual/data-security best practices.

Also monitor state developments in privacy law. Practical compliance checklist for talent acquisition companies operating in Delaware:

Comprehensive, state-specific research on Delaware compliance requirements for talent acquisition companies (staffing agencies, recruitment firms, RPOs). Key findings and practical guidance are summarized below, followed by an actionable compliance checklist and authoritative links.

Summary of key findings (concise):

- Pay transparency (job postings): HB 105 (House Substitute No. 2 for HB 105), signed Sept 26, 2025, requires employers with 26+ employees to include hourly or salary compensation ranges and a general description of benefits in job postings for positions located in Delaware and certain remote jobs offered by Delaware-based employers.

The law takes effect two years after enactment (effective September 2027). It requires recordkeeping (job descriptions and salary/wage history) for at least 3 years and authorizes civil penalties for violations; the Department of Labor enforces the law.

Employers should begin auditing pay practices, job postings and third-party recruiter contracts now. (Legislature and several law-firm analyses.) - Delaware Paid Leave: Delaware’s statewide Paid Leave program (Paid Family & Medical Leave) is implemented by the Delaware Department of Labor; the DOL published that employees can file claims beginning January 1, 2026 and employers with 10+ employees must participate.

Talent-acquisition businesses that are employers (or co-employ through PEO arrangements) must understand contribution, notice, and claims procedures. (Delaware DOL Paid Leave.)

• State licensing: Delaware does not require a specific state-level employment agency, staffing agency, talent agency, nurse staffing, staff leasing, or PEO license. Businesses should still confirm local or industry-specific licensure and comply with other state laws. (Authoritative sources: HarborCompliance, Wolters Kluwer.)
• Employer registration and tax setup: New employers should register via Delaware One Stop to set up accounts with the Division of Revenue (business taxes), the Division of Unemployment Insurance (UI/employer account), and the Office of Workers’ Compensation. The Department of Labor’s OneStop is the central registration gateway. (Delaware DOL/OneStop; Division of Revenue.)
• Wage & hour, postings, and recordkeeping: Delaware enforces state wage-and-hour and labor laws through the Department of Labor (Industrial Affairs). Specific requirements include minimum wage, overtime, payday standards, and required workplace postings. Employers must retain certain employment records. (Delaware DOL – Industrial Affairs / Wage and Hour.)
• Unemployment insurance & workers’ compensation: Employers must register for UI and obtain/maintain workers’ compensation coverage per state rules. OneStop registration links these employer obligations. UI taxes and workers’ comp responsibilities apply to staffing agencies and to client arrangements depending on how workers are classified (employee vs contractor vs leased employee). (Delaware DOL / Division of Unemployment Insurance; DOL OneStop.)
• Background checks, FCRA & anti-discrimination: Criminal-history and consumer-report checks are regulated federally (FCRA) and by EEOC guidance; Delaware enforces anti-discrimination through its Industrial Affairs / Office of Anti-Discrimination. Employers must ensure background-screening policies comply with FCRA disclosure/consent & adverse-action rules and avoid discriminatory hiring practices. Delaware may have “fair chance” considerations; review local DOL/anti-discrimination guidance before implementing blanket exclusions based on criminal history. (Delaware DOL anti-discrimination pages; federal FCRA/EEOC guidance recommended.)
• Independent contractor classification: No single Delaware licensing regime governs classification — employers must carefully apply federal and state tests and consider Delaware UI and tax guidance when deciding classification. Misclassification risks include back taxes, UI and workers’ comp liabilities, and penalties. Use Delaware OneStop and Division of Revenue resources and consult counsel for complex arrangements.
• Data privacy & candidate data: Delaware does not impose a staffing-specific privacy regime beyond general state and federal consumer/data-protection laws; staffing firms must comply with FCRA for consumer reports, protect PII, and follow contractual/data-security best practices. Also monitor state developments in privacy law. Practical compliance checklist for talent acquisition companies operating in Delaware:

Business registration - Register your business entity with Delaware Secretary of State (if forming an LLC/Corp) and set up any trade names as required. - Use Delaware OneStop to register with Division of Revenue (taxes), Division of Unemployment Insurance, and Office of Workers’ Compensation before hiring or placing workers.

Licensing

confirm no state-level staffing/employment-agency license is required, but verify local/industry exceptions. (Document reliance on state guidance.)

Payroll, UI & workers’ comp - Set up payroll withholding for state taxes via Division of Revenue. - Establish an employer UI account and understand taxable wage base and reporting responsibilities. - Secure workers’ compensation insurance if you are the employer of record; clarify responsibility in client contracts if providing leased or temporary staff.

Wage & hour compliance - Follow Delaware minimum wage, overtime, and payday rules; maintain required postings and records. - Implement timekeeping and classification controls to support wage compliance.

Pay transparency readiness - For employers with 26+ employees

prepare to include compensation range and general benefits in job postings by September 2027; maintain job descriptions and wage-history records for 3 years; coordinate with third-party recruiters to ensure compliance. 6) Paid Leave (Delaware Paid Leave) - If you employ 10+ employees, prepare to comply with Delaware Paid Leave contributions, notices, and claims (program active Jan 1, 2026 for claims). Update policies and payroll systems accordingly.

Background checks & hiring practices - Follow FCRA disclosure/consent/adverse-action process for consumer reports. - Review EEOC guidance and Delaware anti-discrimination resources before using criminal-history screens; document individualized assessments.

Independent contractor and co-employment arrangements - Document independent-contractor criteria and client agreements; evaluate risk for co-employment when using PEOs, staff leasing, or temporary assignments.

Contracts and placement agreements - Update client and vendor contracts to reflect pay-transparency, recordkeeping, data-sharing, and indemnity/insurance allocations (workers’ comp, liability, tax indemnities).

Records retention & postings - Keep job descriptions and salary/wage history for at least 3 years (per HB 105). Maintain payroll, UI, and benefit records per state and federal retention rules. Ensure required workplace postings are displayed.

Training & vendor management - Train recruiters and hiring managers on new pay-transparency and paid-leave rules; ensure third-party job boards/aggregators and recruitment vendors receive instructions to include required disclosures.

Ongoing monitoring - Monitor Delaware Department of Labor for implementing regulations and guidance (especially for HB 105 and paid leave), and update templates and compliance programs. Recommended next steps / resources - Register your business and employer accounts via Delaware OneStop (central gateway). (Delaware DOL OneStop) - Review HB 105 bill text and DOL guidance to prepare job posting templates and recordkeeping processes (effective Sept 2027). - Contact Division of Revenue for payroll registration and withholding guidance. - Contact Division of Unemployment Insurance and your insurance broker for UI tax and workers’ compensation obligations and rates. - Review federal FCRA/EEOC guidance for background checks; consult Delaware DOL anti-discrimination resources. - Update placement and staffing contracts to address co-employment, insurance, tax indemnity and pay-transparency obligations.