Wage laws in Pennsylvania
Wages in Pennsylvania are subject to various state laws. We've compiled the most important requirements to know below.
Minimum wage
Pennsylvania doesn’t have state-specific or local ordinances regarding minimum wage requirements. Therefore, they use the current federal minimum wage rate of $7.25 per hour.
Pennsylvania’s House of Representatives recently passed a bill to gradually raise the minimum wage to $15 by 2026. If it passes the Senate, this would be the first time the state has increased its minimum wage since 2009.
Employers may also include allowances, which are wages paid to employees that include the cost of board, lodging, and other facilities, in their minimum wage as long as the employee accepts this arrangement upon hire and the actual costs equal the current minimum wage.
Farm laborers, domestic workers, newspaper delivery persons, outside salespersons, and administrative, executive, and professional staff (if they meet a certain salary threshold) are exempt from minimum wage requirements.
Subminimum wage
Employers can pay student workers, learners, or people with disabilities a subminimum wage if they obtain a Special Certificate from the Bureau of Labor Law Compliance.
These groups can’t receive a wage less than 85% of the current minimum wage ($6.16 per hour) and must meet specific requirements regarding when and how long they can work.
Trainees and apprentices must receive the standard minimum wage.
Tipped wages
Employers must pay tipped employees a minimum wage of $2.83 per hour. If the employee’s tips don’t equal the state’s minimum hourly rate, the employer must pay the difference to equal $7.25 per hour. If they make more than minimum wage in tips, the employer doesn’t need to pay anything extra.
The recently passed minimum wage bill in the Pennsylvania House would raise the tipped wage from $2.83 per hour to 60% of the minimum wage.
Hours worked
Employers must pay employees for all hours worked. This includes on-duty waiting time and travel time if employees travel as part of their regular duties during working hours.
The law doesn’t require employers to pay an employee for showing up for their shift if they perform no work.
Overtime pay
Pennsylvania's overtime requirements are similar to the federal overtime standards. Employers must pay employees overtime of 1.5 times their regular pay for any hours they work more than 40 in a standard workweek.
Certain employee classes, such as executive, administrative, and professional workers, are exempt from overtime wages.
Prevailing wages
While Pennsylvania doesn’t have a prevailing wage law, Pennsylvania employees may be eligible to receive prevailing wages if they work on government-funded projects or perform certain government services.
Prevailing wages may differ from the federal minimum wage depending on the employment contract or project.
Pay frequency
According to the Pennsylvania Wage Payment and Collection Law, employers must pay employees all their owed wages—except fringe benefits, bonuses, and commission—on regularly scheduled, predetermined paydays of the employer’s choosing.
The period between the end of a pay period and the regular payday shouldn’t exceed:
- The agreed-upon time in the employer-employee contract, or
- A reasonable amount of time for the company’s industry, or
- 15 days
Pay deductions
Employers may make pay deductions in certain situations. But deductions can’t bring an employee’s gross salary below the state minimum wage. It’s also illegal for employers to require newly hired employees to agree to a "blanket" authorization form to cover future potential deductions.
The following are allowable pay deductions under Pennsylvania law:
- Deductions required by local, state, or federal law.
- This could include deductions for taxes, social security, FICA, Medicare, or any court-ordered deductions.
- Deductions detailed in written agreements between the employer and employee, such as employee benefits and programs, stock options, personal savings account deposits, charitable purposes, community development activities, or repayment of employer loans.
- Employee purchases or replacements of company goods or services.
- Employee purchases from third parties that the company now owns, affiliates with, or controls.
- Labor organization or union dues, fees, and other lawfully authorized charges.
Pay statements and recordkeeping
Employers should give their employees pay statements each pay period detailing certain information.
Pay statements must include the following:
- Gross wages earned during the statement’s pay period
- Hours worked
- Regular rate of pay
- Allowances (if applicable)
- All withholdings and deductions
Employers must keep true, legible, and accurate records outlining each employee’s wages per pay period during employment, hours worked, and other relevant information for at least three years for authorized authorities upon request.
Pay methods
Under Pennsylvania law, an employer may pay wages by:
- Cash
- Payable checks
- Direct deposit
- The employee must consent to direct deposit in writing and outline the terms and conditions in which the employee can withdraw consent and terminate the arrangement.
- Payroll card
Notices and posters
Employers must notify newly hired employees on or before their state date about their regularly scheduled start date, rate of pay, and any fringe benefits, bonuses, or commission payments the employee may receive. Employees may receive notification individually, or employers can post the information in a visible physical location within the workplace.
Employers can satisfy the notice requirement for workers under a collective bargaining agreement by distributing copies of the agreement to eligible employees.
Additionally, employers must display various mandatory posters in an easily accessible location in the workplace so employees can stay up-to-date on labor laws. An all-in-one federal and Pennsylvania-specific labor law will typically satisfy poster requirements.
Final pay
When an employee separates from employment—regardless of how they left the company—they must receive their final paycheck containing all their remaining wages on or before the next regularly scheduled payday. Employees can request employers to send their final paycheck by certified mail.
Similarly, if an employee is suspended due to an industry dispute, like a strike, employers must pay all wages due at the time of the suspension on or before the next regularly scheduled payday. However, state law doesn’t require employers to meet this timeline if the dispute interrupts payroll services or for other reasons the company can’t control.
