Delaware Tipping Laws & Regulations (2026)

Tip Credit Rules

Delaware allows employers to claim a tip credit of $10.87 per hour (as of 2024), provided that:

• The employee receives tips that, combined with the $2.38 base wage, equal or exceed the $13.25 minimum wage
• The employee is customarily tipped (servers, bartenders, cocktail servers, bussers)
• The employee is informed of the tip credit amount before employment begins
• Tips are properly documented and claimed
• If tips fall short in any pay period, the employer must make up the difference

Scheduled Minimum Wage Increases

Delaware has scheduled minimum wage increases for future years:

• The state has established a plan to increase the minimum wage over time
• Both the regular minimum wage and tip credit amounts will increase accordingly
• The tip credit will adjust to maintain the differential between tipped and non-tipped minimum wages
• Employers must monitor state labor department announcements for specific dates and amounts
• Gratuity Solutions automatically updates rates as soon as new rates are announced

Tip Pooling Regulations

Delaware allows pooled tip arrangements with clear restrictions:

• Tips may only be pooled among employees who are customarily tipped (servers, bartenders, bussers, food runners)
• Non-tipped employees (kitchen staff, dishwashers) cannot participate in tip pools
• Managers and supervisors cannot take a share of tips unless they regularly perform tipped work
• The tip pool must be reasonable and transparent
• Employees must be informed of the tip pool arrangement in advance

Overtime Rules for Tipped Employees

When calculating overtime for tipped employees in Delaware:

• Overtime is calculated on the full minimum wage ($13.25 or current year rate), not the reduced tipped wage
• Tipped employees are entitled to 1.5x the full minimum wage for hours over 40 per week
• This is a significant compliance point many employers overlook
• Gratuity Solutions automatically recalculates for overtime compliance
• Adjust overtime calculations when minimum wage increases are announced

Record-Keeping Requirements

Delaware employers must maintain:

• Daily tip records for each employee claiming tip credit
• Documentation of the tip credit policy provided to employees
• Proof of any tip make-up payments when tips fall short
• Records of tip pooling or sharing arrangements and distributions
• These records must be kept for at least 3 years

Planning for Scheduled Wage Increases

Employers in Delaware should prepare for announced minimum wage increases:

• Monitor the Delaware Department of Labor website for upcoming increases
• Update payroll systems before the effective date of any increase
• Ensure all wage calculations reflect both the new base minimum and tipped minimum
• Review and adjust tip pooling arrangements if necessary
• Verify overtime thresholds reflect the new full minimum wage
• Communicate wage changes to employees in advance