Delaware

Delaware's long-standing reputation as a pro-business, employer-friendly jurisdiction has made the state a popular choice for employers' state of incorporation, the location of their headquarters, and the state whose laws will govern disputes.

Delaware Affirms Adequacy of Equity Awards as Non-Compete Contract Consideration Despite Forfeiture In early February 2026, the Supreme Court of Delaware issued a very important and potentially far-reaching decision, finding equity awards that are later forfeited or clawed back can constitute adequa

On February 10, 2026, the Supreme Court of the State of Delaware affirmed a ruling that Delaware courts must examine the reasonableness and scope of restrictive covenants, even when the employer seeks only damages, and not injunctive relief. The ruling is the second in as many weeks from the Delawar

On February 3, 2026, the Supreme Court of the State of Delaware ruled that restrictive covenants are enforceable if there is sufficient consideration at the time of contract formation, regardless of whether that consideration still exists at the time of enforcement of the covenants. The ruling reviv

Delaware Adopts Amended Paid Leave Regulations on the Eve of Program’s Launch On December 1, 2025, Delaware published amended paid family medical leave (PFML) regulations that take effect on December 11, 2025. While the amendments are not extensive, they will significantly impact many employers set

The Supreme Court of the State of Delaware is considering a case regarding whether a former executive’s noncompete and nonsolicitation agreements, which were agreed to in exchange for company shares, remain enforceable if those shares have been forfeited due to violations of the agreements. The case

On September 26, 2025, Delaware Governor Matt Meyer signed into law legislation that will require employers in Delaware to include wage or salary ranges and information on benefits offered in job postings, becoming the latest in a growing number of states to enact a pay transparency law.

Contributions to Delaware’s Paid Family and Medical Leave program have kicked in, and employees will soon begin making claims for paid leave. A growing number of states have enacted paid family and medical leave laws in recent years.

Delaware Modifies its Paid Family and Medical Leave Program Delaware has enacted HB 128 (“the Act”), which modifies the state’s upcoming paid family medical leave program (“ Delaware Paid Leave ”) before benefits become available on January 1, 2026. The Act became effective immediately upon enactmen

In 2021, LKQ Corporation (LKQ) filed suit against Robert Rutledge, its former plant manager, in the U.S. District Court for the Northern District of Illinois. LKQ alleged that Rutledge’s working for a competitor within nine months of his leaving LKQ breached his restricted stock unit (RSU) agreement

In response to two questions certified by the 7th Circuit, the Delaware Supreme Court clarified that forfeiture-for-competition provisions in employment agreements are subject to a looser review standard.

The new Delaware WARN regulations specify that WARN notices must include detailed information about each affected worker, payouts, severance packages, and whether the employer is self-insured for workers’ compensation. The regulations introduce formal requirements for WARN notices, such as using off

On January 29, 2024, the Delaware Supreme Court unanimously reversed a major Delaware Chancery Court decision that had analyzed the “forfeiture for competition” provisions in a limited partnership agreement using a traditional restrictive covenant reasonableness standard and found them unreasonable

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership agreement are enforceable, reversing the Court of Chancery’s year-old deci

Delaware has published an initial set of interpretive rules in anticipation of the state’s upcoming paid family and medical leave program. The rules provide guidance on determining employer and employee coverage, the duration and amount of benefits available, and employee notice obligations.

On May 10, 2022, Governor John Carney signed into law the Healthy Delaware Families Act , adding Delaware to an expanding list of jurisdictions with a paid family and/or medical leave (PFML) requirement.1 The law creates a statewide paid family and medical leave insurance program funded through empl

On May 10, 2022, Delaware Governor John Carney signed the Healthy Delaware Families Act , which provides up to 12 weeks of leave and benefits to covered employees for certain parental, family caregiving, and medical reasons.

Delaware Governor Carney recently issued the Twenty-Seventh Modification: State of Emergency Declaration . The recent guidelines, which became effective September 4, 2020, contain several sector-specific requirements affecting the health and home care industries operating in Delaware.

Delaware Governor Carney recently issued the Twenty-Seventh Modification: State of Emergency Declaration . The recent guidelines, which became effective September 4, 2020, contain several sector-specific requirements affecting the health and home care industries operating in Delaware.

Last month, Delaware Governor John Carney announced that the state would move to Phase 2 of its reopening plan. Since entering Phase 2, Delaware has announced there would be a delay in progressing to Phase 3, but moved to an expanded rolling Phase 2 reopening. Delaware also paused certain