Understanding Unpaid Wage Claims in Delaware

“The Delaware Wage Payment and Collection Act, 19 Del. C. §1101et seq., provides for a civil action to recover unpaid wages.” (See Masterson-Carr v. Anesthesia Servs., P.A., C.A. No. N12C-11-107 MJB, at *19 n.104 (Del. Super. Ct. Sep. 25, 2014); 19 Del. C. §1103.)

“When an employee is separated from her employment (whether she quits, resigns, is discharged, suspended, or laid off), the wages earned become due and payable on the next regularly scheduled payday. A yearly bonus is considered ‘wages’ under the Act.” (See id; SCOA Indus., Inc. v. Bracken (1977) 374 A.2d 263.)

“The Wage Act imposes substantial penalties plus costs and attorneys' fees on employers who do not pay wages. Under the Act, ‘wages’ means compensation for labor or services rendered by an employee. . .” (See Broesler v. Wardens, C.A. No. 10C-04-222 FSS, at *14 (Del. Super. Ct. Feb. 28, 2011).)

Damages in Unpaid Wages Claims

“If an employer, without any reasonable grounds for dispute, fails to pay an employee wages, as required under this chapter, the employer shall, in addition, be liable to the employee for liquidated damages in the amount of 10 percent of the unpaid wages for each day . . . or in an amount equal to the unpaid wages, whichever is smaller.” (See Rypac Packaging Machinery Inc. v. Coakley, Civil Action No. 16069, at *1 (Del. Ch. May 1, 2000).)

“Thus, the employee's right to recover liquidated damages for improperly withheld wages depends upon whether the employer had ‘reasonable grounds for dispute.’” (See id.)

Case Law on Unpaid Wage Claims

“Whenever an employee . . . is . . . suspended . . . the wages earned by the employee shall become due and payable by the employer on the next regularly scheduled payday. . . .That refers to wages earned before the suspension, which should have been paid. Nothing in the Act requires an employer to continue paying wages to a suspended employee.” (See Broesler v. Wardens, C.A. No. 10C-04-222 FSS, at *14 (Del. Super. Ct. Feb. 28, 2011); 19 Del. C. § 1103(a).)

“The Wage Payment and Collection Act requires that an employer must pay an employee the wages that she has earned on the next regularly scheduled payday if the employee resigns or is fired. The Act does not establish when an employee earns her wages. The Act only provides an employee with rights and recourse when an employer does not pay wages that have been earned.” (See In re Chabot v. Gemcraft Homes Delaware, Civil Action No. 04C-01-020 (THG), at *1 (Del. Super. Ct. Nov. 23, 2005).)

Current as of April 01, 2024 | Updated by Trellis Law Content Team

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