Delaware Restaurant Workers' Comp: Rules and Penalties

Restaurants in Delaware must carry workers’ compensation as soon as they have one employee, including part-time, seasonal and family workers on payroll. Coverage is bought from private insurance carriers, premiums are based on payroll within Delaware’s own classification system maintained by the Delaware Compensation Rating Bureau, and going uninsured brings civil penalties of three times the premium you should have paid plus daily fines.

This page is for Delaware restaurant, bar, cafe, catering and food truck owners who want a clear picture of the state’s workers’ comp rules, what injuries drive restaurant claims, and how to keep premiums in check without cutting corners on coverage.

Who has to carry comp in Delaware, and who can opt out

Under 19 Del. C. § 2306, workers’ compensation is required for any employment with one or more employees. There is no small-business or part-time exception, so the dishwasher who works two nights a week counts. Executive officers are covered, but a corporation may exempt up to eight stockholder-officers, and an LLC up to eight members, by written agreement (the limit is four in construction). Sole proprietors and partners are excluded by default but may elect to cover themselves under § 2308, which is worth considering for owners who work the line every day.

Delaware’s program is overseen by the Department of Labor, Division of Industrial Affairs, Office of Workers’ Compensation. Employers purchase coverage from private insurance carriers.

DCRB classifications and how a restaurant’s premium is built

Delaware does not use NCCI’s classification system. The Delaware Compensation Rating Bureau (DCRB), an independent bureau, maintains the state’s own system of roughly 330 classifications. Your carrier assigns your employees to the classification that fits your operation, and that classification carries a rate. The basic formula is qualitative but important: payroll in each classification, multiplied by the rate for that classification, adjusted by an experience modification if your business qualifies, then by any carrier credits or debits. Because the base is payroll, estimated payroll at the start of the policy is trued up at an annual audit.

Classification errors are a common and expensive problem. Make sure the class assigned matches what your restaurant actually does, and ask your agent to review it at every renewal.

Penalties for an uninsured Delaware restaurant

Delaware treats a lapse seriously. Under 19 Del. C. § 2374, an uninsured employer owes a civil penalty of three times the premium it failed to buy (or three times the highest available premium if it was never insured), plus 10 dollars per employee per day, with a minimum of 250 dollars per day, after notice. An injured employee can also sue the employer directly, and the employer loses the defenses of the worker’s own negligence and assumption of risk. The Department can go to the Court of Chancery for an injunction that stops the business from operating. For a restaurant, that is a potential shutdown on top of a claim. More on the consequences: what happens if a restaurant has no workers’ comp.

Injuries that fill Delaware restaurant claim files

Burns — fryer oil, sheet pans, steam from dish machines and plates pulled from salamanders.
Cuts and lacerations — knives, meat slicers, mandolines, broken glass and blender blades.
Slips and falls — wet kitchen tile, walk-in floors, grease near the line and icy back steps in a Delaware winter.
Lifting and strain — kegs, cases of produce, stock pots and catering equipment.
Workplace violence — robberies at closing, altercations with intoxicated guests and disputes at the door.
Driving injuries — delivery staff hurt in accidents while on the job.

Kitchen burns are among the most frequent claims; see does workers’ comp cover kitchen burns for how they are handled.

Practical ways Delaware restaurants lower comp costs

Verify your classification and payroll split each year, and keep records ready for the audit.
Report injuries promptly; late reporting tends to increase claim costs.
Offer modified or light-duty work so injured employees can return sooner.
Invest in non-slip mats and footwear, cut-resistant gloves, slicer guards and fryer oil handling equipment.
Train new hires in their first week, when many injuries occur.
Protect staff at closing with drop safes, lighting and two-person close procedures.
Compare carriers at renewal; pricing and credits for restaurants vary by carrier.

Shopping restaurant comp with Provident Financial Group

As an independent agency, Provident Financial Group compares multiple carriers from one application and lays the options side by side, and we can package comp with your liability and property coverage or write it on its own. Our sister site USA Workers Comp covers workers’ compensation for other industries. Call (866) 964-6660. Coverage is subject to underwriting and policy terms.

Frequently asked questions

Does a Delaware restaurant with one part-time employee need workers’ comp?

Yes. Delaware requires coverage for any employment with one or more employees, and part-time staff count.

Can I exclude myself as the owner of a Delaware LLC?

Up to eight LLC members may be exempted by written agreement. Sole proprietors and partners are excluded automatically but may elect coverage.

Does Delaware use NCCI class codes for restaurants?

No. The Delaware Compensation Rating Bureau maintains Delaware’s own classification system, so codes from other states do not carry over.

What happens if my comp policy lapses for a few weeks?

Delaware can impose a civil penalty of three times the unpaid premium plus daily fines after notice, and an employee hurt during the gap can sue you directly.

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Restaurant Workers’ Compensation in Delaware