WILMINGTON, Del. (WBOC/AP)– Alongside labor leaders, advocates and members of the General Assembly, Gov. John Carney on Monday signed Democratic-sponsored legislation to gradually increase Delaware’s minimum wage to $15 an hour by 2025.
“Delawareans who go to work full time shouldn’t be living in poverty,” said Carney. “I am proud to sign Senate Bill 15 today, gradually increasing the minimum wage to $15.”
Democrats approved the measure last month after defeating half a dozen Republican amendments, including proposals to allow small businesses and nonprofits to pay 85% of the minimum wage and to require the controller general’s office to submit annual reports regarding the fiscal impact of the wage increases on the state budget, and on the broader effects on the state economy.
The bill was one of the legislative priorities for several left-leaning progressives who were elected last year and were able to get veteran Democrats to sign on to their cause.
Republicans warned that the wage increases could have unintended increases, including small businesses shutting down, people losing jobs, consumers paying higher prices, and some low-wage workers losing more in state assistance for expenses such as rent and child care than they will gain in income.
Delaware’s current minimum wage is $9.25 per hour. The bill increases the minimum wage by 13.5% to $10.50 effective Jan. 1, followed by similar annual double-digit percentage increases to $11.75 per hour in January 2023, $13.25 per hour in January 2024, and $15 per hour in January 2025.
Legislative analysts estimate that the bill will cost taxpayers an additional $3.7 million in fiscal 2024 for state employee wages, not counting resulting salary and wage compression issues.