By Tyler Micik
As the General Assembly continues its 153rd session, the State Chamber remains actively engaged on several issues that could have significant implications for Delaware’s business community. From pay transparency to updates to Delaware’s corporate law, the diversity of proposed legislation reflects the evolving challenges facing our members. In March, Governor Meyer presented his FY 2026 budget reset—totaling over $6.58 billion, which is about a 7.4% increase over this year’s budget, while the state’s revenue is only expected to grow by 1.9%. To help close this gap, the budget calls for the creation of three new personal income tax brackets for those who make $125,000; $250,000; and $500,000, along with raising the cigarette tax by 50 cents. That said, expenses are outpacing revenues, and determining what gets funded—and what doesn’t— will require making some hard decisions. There are several bills the State Chamber is particularly engaged on that recently passed or are making their way through the legislative process. Senate Substitute 1 for Senate Bill 21 was passed by the General Assembly and signed into law by Governor Meyer in late March. The bill amends Delaware’s corporate law by providing clearer frameworks for transactions involving interested parties and refining stockholder rights to provide legal clarity and predictability for corporations—essential qualities in maintaining Delaware’s status as the nation’s preferred place of incorporation. The State Chamber has always been committed to supporting policies that are in the best interest of our state, and this is no exception. That said, the State’s reliance on substantial sums of money coming from outside its borders to fuel government spending demonstrates the need for pro-growth policies and the diversification of its economy. House Bill 105, pay transparency, is another bill that our members have expressed concerns over. The bill requires businesses with 11 or more employees to post salary or wage ranges in all job advertisements, both internally and externally, and to maintain detailed records of job descriptions and compensation histories for each employee. It also grants the Delaware Department of Labor enforcement authority and imposes penalties for violations. While we support the goals of pay transparency and equity, the bill’s strict compliance requirements, potential for costly penalties, and administrative burden pose challenges for employers, especially small businesses. Additionally, wage ranges can vary based on market demand, candidate experience, and other dynamic factors. Requiring rigid disclosures risks reducing flexibility in hiring and may unintentionally deter some businesses from expanding or posting new roles. For example, in states where pay transparency laws are already in effect, a common concern among employers is that once salary ranges are posted, current employees may expect to be paid at the top of the range, leading to internal dissatisfaction and tension. These postings could also encourage more job shopping and higher employee turnover, potentially driving wage inflation and putting small businesses at risk of closure. Other bills we are following include Senate Bill 63, general contractor liability; House Bill 84, employer-sponsored meetings and communications; House Substitute 1 for House Bill 13, personal income tax changes; Senate Bill 89, credit card transactions; House Bill 111, single-use food service items; House Bill 115, discrimination based on weight, height or body size; and a draft chatbot disclosure bill. The State Chamber remains committed to advocating for our members and will continue to work on these bills through June 30. To stay informed, we hope you will consider joining one of the State Chamber’s policy committees and attending our Small Business Day in Dover on May 15 or End-of-Session Policy Conference on May 21. For more information, please contact me at [email protected].
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