Delaware
Delaware: Amendments to Delaware Personal Data Privacy Act
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APPLIES TO All Employers with Employees in DE |
EFFECTIVE JAN 1, 2027 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Effective January 1, 2027, HB 380 amends the Delaware Personal Data Privacy Act (DPDPA) to cover certain employer uses of automated screening and evaluation tools. Although the DPDPA generally excludes individuals in an employment context from its definition of “consumer,” employers that use AI resume screeners, interview scoring tools, or vendor-generated reports relying on personal data in hiring, promotion, discipline, or termination decisions must now comply with the law’s requirements.
Under the amended law, “report” means any written, oral, or other communication of any personal data by a controller or processor, including recommendations, summaries, or automated decisions based on personal data or profiling. “Decisions that produce legal or similarly significant effects” means decisions that result in the provision or denial of financial or lending services, housing, insurance, education enrollment or opportunity, criminal justice, employment opportunities, health-care services, or access to essential goods or services.
Controllers of sensitive data who engage with vendors to utilize such tools or generate such reports must contractually require the vendor to: (1) provide the affected individual with notice of any adverse action taken based in whole or in part on the report; (2) describe the personal data relied upon in making the decision; (3) inform the individual of the right to obtain further information from the controller; and (4) inform the individual of the right to request human review of the decision where feasible and not contrary to their best interest. Employers should note that purchasing third-party AI tools does not avoid complying with the law’s requirements.
The definition of sensitive data has also been expanded to include characteristics often collected for employment purposes like national origin, pregnancy, treatment status, status as transgender or nonbinary, citizenship status, and immigration status. Employers who use such measures or inferences for workforce analytics would need to obtain consent before using the content to generate output using AI tools.
Action Items
- Review applicability of the DPDPA with legal counsel.
- Conduct internal evaluation of AI and other employee/applicant profiling tools.
- Update vendor contracts to include contractual compliance obligations, if applicable.
Delaware: No Captive Audience Meetings
Effective September 30, 2026, Delaware’s HB 84 prohibits employers from discharging, threatening to discharge, or taking or threatening to take any adverse employment action against an employee for refusing to attend, participate in, or listen to communications from the employer in an employer-sponsored meeting during which the employer conveys opinions about political or religious matters (also known as “captive audience meetings”). The law defines “political matters” to include matters related to the decisions to join or support a labor organization. “Religious matters” include matters relating to religious belief, affiliation, practice, membership in, or support of any religious organization, association or other group.
Delaware: Unemployment Eligibility During Labor Disputes Clarified
Effective September 30, 2026, Delaware’s SB 26 amends the state’s unemployment insurance law to extend eligibility to employees involved in labor disputes, other than lockouts. Under prior law, employees in a non-lockout labor dispute were disqualified from receiving unemployment benefits entirely; employees in a lockout situation were already eligible from the date of filing. The amendment now allows employees in a non-lockout labor dispute to collect unemployment benefits after a two-week waiting period, provided they meet all other eligibility requirements, including being able and available for work and completing weekly job search requirements. The two-week waiting period is waived if the labor dispute was caused by the employer’s failure or refusal to comply with an applicable agreement, contract, collective bargaining agreement, or state or federal law pertaining to hours, wages, or other conditions of work, or if the employer hires a permanent replacement worker for the employee’s position. Employers should also be aware that the amendment authorizes the Delaware Department of Labor to impose a penalty on any employer that fraudulently certifies an employee’s ability to return to their prior position upon conclusion of the labor dispute.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase