Delaware Code Title 19 Sec. 3511 – Employer record-keeping requirements
(a) An employer shall keep, for at least 3 years, in or about its place of business, records of the employer containing the following information:
(1) The name, address, occupation, and classification of each employee or independent contractor;
(2) The rate of pay of each employee or method of payment for the independent contractor;
(3) The amount that is paid each pay period to each employee;
(4) The hours that each employee works each day and each work week;
(5) For all individuals who are not classified as employees, evidence including the written notice required by subsection (c) of this section and any other evidence in the employer’s possession which the employer believes is relevant to determine whether each individual is an exempt person, an independent contractor or an employee; and
Terms Used In Delaware Code Title 19 Sec. 3511
- Contractor: means a person, partnership, association, joint stock company, trust, corporation, limited liability company, or other legal business entity or successor or subsidiary thereof that engages in construction services or maintenance under an express or implied contract on behalf of another entity or individual for profit within the State, and includes any subcontractor or lower tier subcontractor of a contractor. See Delaware Code Title 19 Sec. 3501
- Employee: means any person or entity directly hired by, or directly permitted to work by an employer in the State, for work to be performed wholly or partly therein. See Delaware Code Title 19 Sec. 3501
- Employer: means any individual, partnership, association, joint stock company, trust, corporation, the administrator or executor of the estate of a deceased individual or the receiver, trustee or successor of any of the same employing any person excepting those provided for in subsection (b) of this section. See Delaware Code Title 19 Sec. 3501
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Exempt person: means any individual who:
- Independent contractor: means an individual or entity who meets all of the following:
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Place of business: means the principal office or headquarters of the employer, but does not mean a work site at which the employer has been contracted to perform services. See Delaware Code Title 19 Sec. 3501
(b) An employer shall provide each individual classified as an independent contractor or exempt person with written notice of such classification at the time the individual is hired.
(c) The written notice shall:
(1) Include an explanation of the implications of the individual’s classification as an independent contractor or exempt person rather than as an employee;
(2) Include contact information for the Department;
(3) Be provided in English and Spanish; and
(4) Be signed by both the employer and the independent contractor or by the employer and the exempt person, as the case may be.
(d) Failure to comply with the written notice requirement in subsection (c) of this section shall be evidence of a knowing violation by the employer of § 3503 of this title. The employer shall be liable for an administrative penalty of $500 for each individual that the employer failed to notify.
(e) An employer who complies with the written notice requirement in subsection (c) of this section shall be presumed to have acted in good faith in determining whether to classify an individual as an employee, an independent contractor or an exempt person pursuant to § 3503 of this title.
(f) The Department shall adopt regulations establishing specific requirements for the content and form of the notice by October 29, 2010, and, notwithstanding the provisions of subsection (b) of this section, the adoption of such regulations shall be a prerequisite to an employer’s obligation to furnish the notice.