Pennsylvania Labor Laws

Pennsylvania Minimum Wage

In Pennsylvania, the minimum wage is $7.25 per hour. For any hours worked beyond 40 in a workweek, hourly employees must be compensated at 1.5 times their regular rate of pay.

Pennsylvania Labor Law Posters

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History of Pennsylvania Labor Laws

The Fair Labor Standards Act of 1938 (FLSA) initially set the U.S. minimum wage at $0.25 per hour. Since then, it has been raised 22 times, with the most recent increase in July 2009, bringing the federal minimum wage to $7.25 per hour.

In Pennsylvania, the minimum wage was $1.15 in 1968. By 1978, it had increased to $2.65, reaching $3.35 by 1981. It rose to $4.25 in 1992 and $5.15 in 1998. In 2009, it was adjusted to $7.25 per hour to align with the federal minimum wage. Despite ongoing efforts by the state’s governor to raise the minimum wage, no changes had been made by the end of 2019.

Pennsylvania is one of 16 states where the minimum wage matches the federal rate of $7.25 per hour. In contrast, 29 states have set higher minimum wages, while five states do not have a state-specific minimum wage.

States like Maine, California, and Massachusetts have some of the highest minimum wages, each setting their rates above $10 per hour.

Municipality Minimum Wage Laws

When it comes to the minimum hourly wage, federal law sets a baseline, not a limit. This is why Pennsylvania raised its rate to $7.25 when the federal minimum was established at that level.

States can set higher minimum wages, and municipalities often have the ability to do so as well. However, this is not the case in Pennsylvania.

Pennsylvania is among the states that have enacted laws preventing cities from setting their own minimum wages. This means any changes to the minimum wage must occur at the state level.

As of mid-December 2019, the UC Berkeley Labor Center reported that 51 counties and cities in the United States had their own minimum wage laws, with more than half of these located in California.

By the end of 2019, no city or county in Pennsylvania was on this list.

This doesn’t mean that cities like Philadelphia and Pittsburgh will never see higher minimum wages. However, those hoping for higher minimum wages in specific Pennsylvania cities shouldn’t hold their breath, especially considering that the state minimum wage has remained at $7.25 since 2009.

Pennsylvania Labor Law Exemptions

The Pennsylvania Department of Labor and Industry lists several exemptions from both minimum wage and overtime rates:

Exemptions from Both Minimum Wage and Overtime Rates:

  • Farm labor
  • Domestic service in a private home
  • Newspaper delivery to consumers
  • Publication of small newspapers (circulation under 4,000)
  • Executive, administrative, or professional employees, or outside salespeople
  • Educational, charitable, religious, or nonprofit organizations when services are rendered gratuitously
  • Golf caddies
  • Seasonal employees under 18, or students under 24 working for certain nonprofit organizations or camps operating less than three months a year
  • Employees of public amusement or recreational businesses, organized camps, or nonprofit educational conference centers operating under specific conditions
  • Switchboard operators for small independent public telephone companies
  • Employees not subject to civil service laws working for elected officials
  • Learners and students with special certificates, and certain individuals with disabilities with proper licensing or certification

Exemptions from Overtime Rates Only:

  • Seamen
  • Salesmen, parts men, and mechanics primarily engaged in selling and servicing autos, trailers, trucks, farm implements, or aircraft for non-manufacturing companies
  • Taxi drivers
  • Motor carrier employees regulated by the federal Secretary of Transportation
  • Announcers, news editors, and chief engineers at small radio or television stations
  • Employees processing maple sap into sugar or syrup
  • Employees of motion picture theaters

Pennsylvania Posting Requirements

Federal law applies in all states, so it’s essential to start with federal posting requirements.

Federal Posting Requirements:

  1. Fair Labor Standards Act (FLSA): Establishes minimum wage, overtime, recordkeeping, and youth employment standards.
  2. Family and Medical Leave Act (FMLA): Provides eligible employees with the right to take unpaid, job-protected leave for specified reasons.
  3. Employee Polygraph Protection Act: Generally prohibits most private employers from using lie detector tests for pre-employment screening and during employment.
  4. Occupational Safety and Health Act (OSHA): Regulates workplace safety.
  5. Uniformed Services Employment and Reemployment Rights Act (USERRA): Protects the employment rights of military servicemembers and veterans.
  6. Migrant and Seasonal Agricultural Worker Protection Act: Sets standards for wages, housing, transportation, disclosures, and recordkeeping for migrant and seasonal agricultural workers.
  7. Walsh/Healey Public Contracts Act and McNamara-O’Hara Service Contract Act: Require certain federal contractors and subcontractors to pay fair wages.
  8. Immigration and Nationality Act: Governs immigration law.
  9. Davis-Bacon and Related Acts: Set requirements for certain federal contractors and subcontractors.

Not all these laws apply to every employer, and determining which ones do involves navigating a complex set of factors.

Pennsylvania-Specific Posting Requirements:

  1. Abstract of the state’s child labor act’s labor provisions
  2. Minimum wage law poster and fact sheet
  3. Abstract of the Equal Pay Law
  4. Pennsylvania Worker and Community Right to Know Act
  5. Unemployment compensation for state employees
  6. Workers’ compensation information, including details about designated health care providers

The specific notices that must be posted can vary depending on the employer’s circumstances. It’s crucial for employers to understand both federal and state requirements to ensure compliance.

Tipped Wage in Pennsylvania

In Pennsylvania, employers can pay tipped employees as little as $2.83 per hour, provided the employee makes at least $30 a month in tips. If the tips plus the lower hourly rate do not equal the minimum wage of $7.25 per hour, the employer must make up the difference.

The difference between the minimum wage of $7.25 and the lower hourly rate paid is called a “tip credit.” In Pennsylvania, the maximum tip credit is $4.42 ($7.25 - $2.83).

Employers who use a tip credit must inform employees, so they understand why their base hourly rate is lower than the minimum wage.

Example of Tip Credit: Louis is a waiter whose employer takes the maximum tip credit of $4.42 and pays him $2.83 per hour. He works eight hours and earns $10 in tips. His total earnings are $32.64. However, he must earn at least $58 ($7.25 x 8). The employer must pay the difference of $25.36 to meet the required minimum.

Tip Pools: Pennsylvania allows employers to form “tip pools,” where tips are collected and redistributed among staff. Employers cannot keep any portion of an employee’s tips, and managers or supervisors cannot participate in the tip pool. Employees must be notified in advance if there is a tip pool.

If an employer takes a tip credit, they cannot require tipped employees to share tips with non-tipped employees, like cooks. However, tips can be shared with such employees if the employer does not claim a tip credit.

Overtime Wage in Pennsylvania

Under Pennsylvania law, nonexempt employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a workweek, aligning with the federal Fair Labor Standards Act (FLSA). Given the minimum hourly rate is $7.25, the minimum overtime rate is $10.88.

Exemptions from Overtime Pay:

  • Employees in bona fide executive, administrative, or professional roles
  • Seamen
  • Salesmen, parts men, and mechanics primarily engaged in selling and servicing autos, trailers, trucks, farm implements, or aircraft for non-manufacturing companies
  • Taxi drivers
  • Motor carrier employees regulated by the federal Secretary of Transportation
  • Announcers, news editors, and chief engineers at small radio or television stations
  • Employees processing maple sap into sugar or syrup
  • Employees of motion picture theaters

Greater Protections Under Pennsylvania Law: Pennsylvania law sometimes offers greater protection than federal law. In such cases, the law providing the greater protection applies.

For example:

  • Federal law does not require overtime for certain computer employees, but Pennsylvania law does, unless another exclusion applies.
  • Federal regulations allow employers to restrict overtime for employees earning more than $107,432 per year, but this exclusion does not apply in Pennsylvania.

Child Labor Laws in Pennsylvania

Pennsylvania’s child labor law aims to protect minors by restricting their employment in certain occupations and under specific age limits. A minor is defined as anyone under 18 years old.

General Coverage:

  • The law applies to all establishments except for farm work or domestic service in a private home.
  • Minors must obtain work permits before starting employment.

Age Restrictions:

  • Under 14: Generally not allowed to work in any occupation.
    • Exceptions: Children aged 12 can work as golf caddies (carrying one bag and working no more than 18 holes a day). Children aged 11 can deliver newspapers.
  • Under 16: Requires a written statement from a parent or guardian granting permission to work and acknowledging the duties and hours.
  • Under 18: Requires completion of an Application for Minors in Performances for employment in modeling or artistic creative expression in broadcast media.

School District Authority:

  • School districts can refuse or revoke work permits if they believe employment would hinder the minor’s academic performance.

Prohibited Occupations:

  • Minors are banned from certain jobs, such as crane operator and excavator. The complete list of prohibited occupations can be found on the state’s official website.

Employer Recordkeeping Requirements in Pennsylvania

Here are the record retention requirements for employers in Pennsylvania:

Minimum Wage Regulation: Employers must preserve certain records for three years, including:

  • Full name and any worker ID number
  • Home address with zip code
  • Hourly pay rate
  • Occupation
  • Time and day the workweek starts
  • Number of hours worked daily and weekly
  • Total daily or weekly straight-time wages
  • Total overtime compensation for the workweek
  • Additions to or deductions from wages for each pay period
  • Allowances claimed as part of the minimum wage
  • Total wages paid for each pay period
  • Date of payment and pay period covered
  • Special certificates for students and learners

For non-hourly workers, records must show the basis of payment.

Unemployment Compensation Regulation: Employers must retain certain records for four years, including:

  • Social Security number
  • Full name
  • Wage rate
  • Total remuneration paid for each pay period by type of payment
  • Business expenses incurred and accounted for, with dates
  • Place of employment
  • Scheduled hours and hours worked
  • Daily attendance record
  • Date and reason for separation, if applicable
  • Number of credit weeks
  • Documentation of payments made
  • Contracts between the employer and third parties, if applicable
  • Any contract between the employer and worker
  • Records supporting the classification of a worker as an independent contractor
  • Federal and state tax returns for the periods of employment

Public Contractors and Subcontractors: Must keep records showing the name, craft, and hourly wage rate of each worker employed in public work for two years from the date of payment (43 P.S. § 165.6).

Material Safety Data Sheets: Employers must make these available to employees for every hazardous substance or mixture they might be exposed to (35 P.S. § 7305).

Pennsylvania Labor Law Questions & Answers

The answer isn’t straightforward.

Pennsylvania law does not automatically require employers to pay out unused vacation time when an employee leaves their job. Whether this time must be paid depends on the employer’s specific policy.

If an employer’s handbook states that employees will be paid for accrued but unused vacation time upon separation, then the employer must follow this rule. This policy can also be established through consistent practice, even if not explicitly stated in a handbook.

In summary, employers must adhere to their own policies regarding the payment of accumulated but unused vacation time. The best approach for employers is to clearly outline this policy in writing and ensure all employees are aware of it.

Yes. Pennsylvania’s minimum wage law broadly defines “employer” to include any individual, partnership, association, corporation, business trust, or any person or group acting in the interest of an employer in relation to any employee (43 P.S. § 333.103(g)).

No. Pennsylvania allows employers to form “tip pools,” where tips are collected and redistributed among staff. However, employers cannot keep any portion of an employee’s tips, and managers or supervisors cannot participate in the tip pool. Employers must notify employees in advance if a tip pool is in place.

Employers cannot require a tip pool contribution that would reduce a tipped employee’s hourly rate below the minimum wage of $7.25, nor can they demand contributions that exceed what is customary and reasonable.

Minors Aged 14 or 15:

  • During the school term:
    • Maximum of 3 hours per day on school days
    • 8 hours on non-school days
    • 18 hours per week (Monday to Friday)
    • Additional 8 hours on Saturdays and Sundays
  • During school vacations:
    • Up to 8 hours per day
    • 40 hours per week
  • Time restrictions:
    • Generally, cannot work after 7 p.m. or before 7 a.m.
    • Can work until 9 p.m. during school vacations
    • Can deliver newspapers between 5 a.m. and 8 p.m.
    • Volunteer fire company members can participate in activities until 10 p.m. with parental consent

Minors Aged 16 or 17:

  • During the school term:
    • Up to 8 hours per day
    • 28 hours per week (Monday to Friday)
    • Additional 8 hours on Saturdays and Sundays
  • During school vacations:
    • Up to 10 hours per day
    • 48 hours per week
    • Right to refuse work beyond 44 hours per week
  • Time restrictions:
    • Generally, cannot work before 6 a.m. or after midnight
    • Can work until 1 a.m. during school vacations
    • Volunteer fire company members can continue serving until excused by a chief

General Rules:

  • Restrictions do not apply to minors employed as sports attendants or those who have graduated from high school or are exempt from compulsory attendance.
  • Employment for more than six consecutive days is prohibited, except for newspaper delivery.
  • A 30-minute break must be provided after no more than five consecutive hours of work. 

Yes, overtime is mandatory unless an exemption applies. The Pennsylvania Department of Labor and Industry lists several exemptions from both minimum wage and overtime rates, including:

  • Farm labor
  • Domestic service in a private home
  • Newspaper delivery to consumers
  • Publication of small newspapers
  • Executive, administrative, or professional employees, or outside salespeople
  • Educational, charitable, religious, or nonprofit organizations when services are rendered gratuitously
  • Golf caddies
  • Seasonal employees under 18 or students under 24 working for certain nonprofit organizations
  • Employees of public amusement or recreational businesses, organized camps, or religious or nonprofit educational conference centers operating under specific conditions
  • Switchboard operators for small independent public telephone companies
  • Employees not subject to civil service laws working for elected officials
  • Learners and students with special certificates, and certain individuals with disabilities with proper licensing or certification

Additionally, some employees are exempt from overtime rates only, such as seamen and certain salesmen, parts men, and mechanics. 

Pennsylvania Labor Law Posters

Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters. 

SHOP PENNSYLVANIA POSTERS NOW
SAFEGEAR Protect
Labor Law Posters