01$7.25 statewide, no city ordinances permitted, HB 1549 tiered raise stalled
Pennsylvania's minimum wage is $7.25/hr — the federal floor under the Fair Labor Standards Act, unchanged since July 24, 2009. The state's Minimum Wage Act of 1968 (43 P.S. §§ 333.101-333.115) adopts the federal rate by reference. Pennsylvania has not legislated any state-specific increase above federal in over 16 years.
State law preempts local minimum wage ordinances. Pennsylvania's preemption statute (passed 2006 alongside the last state minimum wage increase) prohibits cities and counties from setting higher minimum wages. Philadelphia, Pittsburgh, Lancaster, and Allentown have passed resolutions supporting preemption repeal; bills like SB 19 (2025) and HB 1150 have been introduced but have not advanced. Until preemption is repealed, no local minimum wages are permitted.
House Bill 1549 — passed the PA House on June 11, 2025 by a 102-101 vote — would amend the Pennsylvania Minimum Wage Act to introduce a tiered minimum wage by county population. Key provisions: Philadelphia (1st class county): $15.00/hr beginning January 1, 2026. Next 16 most populous counties (including Allegheny): $12.00/hr in 2026, rising to $15.00 by 2028. Remaining 47 counties: $10.00/hr in 2026, rising to $12.00 by 2028. Annual cost-of-living adjustments for all counties starting January 1, 2029. As of February 2026, the bill has been referred to the Senate Labor and Industry Committee and has not been enacted.
Tipped wage in Pennsylvania: $2.83/hr cash for tipped workers, with employer required to ensure tips bring total compensation to at least $7.25. The tip credit is one of the deeper differentials in the country at $4.42 — reflecting the very low cash wage. Tipped workers must receive at least $135 per month in tips to qualify; below that threshold, the worker is treated as non-tipped and earns the full $7.25 in cash.
The minimum wage is operationally simple in Pennsylvania — a single statewide rate, no city ordinances, no automatic indexing. The complexity instead lives in the OT and exempt frameworks (PMWA's 3-year SOL, fluctuating workweek prohibition) and in the local PSL ordinances (Philadelphia, Pittsburgh, Allegheny County) operating without state coordination.
Read the full Pennsylvania federal floor and state wage preemption guide →
02Personal exposure for owners, executives, and HR leaders on unpaid wages
Pennsylvania's Wage Payment and Collection Law (WPCL, 43 P.S. § 260.1 et seq.) governs the timing and methods of wage payment in Pennsylvania. The statute applies to all employers regardless of size and covers all wages, commissions, fringe benefits, and wage supplements. Wages must be paid on regularly designated paydays, with the time between the end of a pay period and payday limited by statute or industry custom.
The distinctive feature: WPCL § 260.9a imposes individual liability on officers, agents, and other persons actively involved in nonpayment. The Pennsylvania Supreme Court has held that liability extends to corporate officers who actively participate in wage payment decisions — meaning owners, executives, HR leaders, and payroll managers can face personal exposure beyond the corporate veil. Mark v. Newport News Industrial Corp. and Carpenters Health & Welfare Fund v. Mgmt. Resource Sys. have affirmed broad reach.
Damages structure: full back wages, plus 25% liquidated damages or $500 minimum (whichever is greater), plus mandatory attorney fees and court costs. The 25% liquidated damages is calculated on the unpaid amount — for a $50,000 wage claim, the liquidated damages are $12,500. Attorney fees can substantially exceed the underlying wage shortfall in litigated cases.
Criminal exposure under § 260.10: willful violations are a summary offense for first violations and a misdemeanor for subsequent violations. While criminal prosecution is rare, the criminal statute creates leverage in civil enforcement and can be invoked in egregious cases. The PA L&I and PA Attorney General's Office have civil enforcement authority but criminal cases proceed through county prosecutors.
WPCL's reach extends beyond regular wages: commissions actually earned per the commission agreement; fringe benefits and wage supplements per employer policy; vacation payout per policy or practice; expense reimbursements; and any other amounts owed. The breadth means most wage-related disputes — including disputes over commission timing, vacation payout, or expense reimbursement — can be brought as WPCL claims with personal liability and liquidated damages exposure.
Read the full Pennsylvania wpcl individual liability for officers and agents guide →
03Worker-favorable interpretations expand back-OT exposure beyond federal FLSA
Pennsylvania's overtime law (PMWA, 43 P.S. § 333.104) requires overtime pay at 1.5× regular rate for hours past 40 in a workweek. The state law tracks federal FLSA's 40-hour weekly trigger. Pennsylvania does not impose a daily overtime trigger.
The 3-year statute of limitations is one of PMWA's worker-favorable features. Under federal FLSA, the SOL is 2 years for ordinary violations and 3 years only for willful violations — meaning the worker must prove willfulness to access the third year. Pennsylvania's PMWA gives workers a flat 3-year SOL regardless of willfulness, expanding back-OT exposure on every claim by 50% over federal.
The fluctuating workweek prohibition is the more consequential PMWA feature. Under federal FLSA 29 CFR 778.114, employers can pay non-exempt salaried workers a fixed salary for fluctuating hours and calculate overtime at HALF-time premium for hours over 40 (the salary already covers the straight-time portion). This dramatically reduces effective overtime pay for high-hour weeks. The PA Supreme Court rejected this approach in Chevalier v. General Nutrition Centers (2019), holding that PMWA requires the full 1.5× rate calculation for non-exempt salaried workers.
The Chevalier decision retroactively exposed many fluctuating workweek arrangements. Pennsylvania employers that had been paying half-time for OT under the federal method face full 1.5× recalculation back to the start of the relevant period. Combined with the 3-year SOL, the back-OT exposure can be substantial. The decision is a major reason for the increase in PA wage class action filings since 2019.
Exempt classification follows federal FLSA: $684/week salary basis ($35,568/year) plus duties test under 29 CFR Part 541. The DOL's 2024 attempt to raise the threshold was vacated by the Eastern District of Texas in November 2024, leaving the federal $684 in place. Pennsylvania has no state-specific threshold above federal — but the worker-favorable interpretations of duties tests and the 3-year SOL together make misclassification exposure higher in Pennsylvania than the bare federal floor would suggest.
Read the full Pennsylvania pmwa overtime — 3-year sol, no fluctuating workweek guide →
04Philadelphia, Pittsburgh, Allegheny County run separate PSL — Pittsburgh's 2026 expansion
Pennsylvania has no state PSL law. Statewide proposals — including the Family Care Act (HB 200) and various PSL bills — have been introduced but not enacted. As of March 2026, Pennsylvania has not enacted statewide paid sick leave or a state PFML program. The absence of state coverage means Pennsylvania remains in the minority of populous states without statewide PSL.
Three local jurisdictions have enacted PSL ordinances: Philadelphia (Philadelphia Code § 9-4100) — 40 hours per year, 1 hour per 40 worked, applies to employers with 10+ employees. Pittsburgh (Paid Sick Days Act, Chapter 626) — effective January 1, 2026 amendment: 1 hour per 30 worked (from 1:35), up to 72 hours/year at 15+ employee employers and 48 hours at smaller. Allegheny County (Article XXIV) — 40 hours/year, 1 hour per 35 worked, employers with 26+ employees. Allegheny County does not displace stricter Pittsburgh rules within Pittsburgh.
Per-shift routing is required. The applicable PSL rule depends on where the work is performed, not where the worker resides or where the employer's headquarters is located. A worker performing 4 hours in Philadelphia, 3 hours in Pittsburgh, and 2 hours elsewhere in Allegheny County in a single shift accrues under three different rules with potentially different rates and caps.
Pittsburgh's 2026 amendment introduced significant changes. Accrual rate increased from 1:35 to 1:30 — a ~17% increase. Annual caps increased: 72 hours at 15+ employer (up from 40), 48 hours at smaller (up from 24). Tipped worker pay rate now calculated as the numerical average of three SOC categories: 'bartenders' (35-3011), 'waiters and waitresses' (35-3031), and 'dining room and cafeteria attendants and bartender helpers' (35-9011). Stricter retaliation provisions added — employers must prove non-retaliatory motive for adverse actions taken within 90 days of protected activity.
Coordination with potential state PSL: HB 200 (Family Care Act) would create a state PFML program but does not address PSL. If Pennsylvania enacts statewide PSL, the local ordinances would need to coordinate via most-favorable-rule logic (Philadelphia and Pittsburgh have indicated they would maintain ordinances at higher levels if state passes a floor). Until then, the three-jurisdiction patchwork remains the operational reality.
Read the full Pennsylvania three local psl ordinances — no state framework guide →
05Hospital and care facility workers can decline mandatory overtime
Pennsylvania's Prohibition of Excessive Overtime in Health Care Act (Act 102, 43 P.S. § 932.1 et seq.) was enacted in 2008 to address concerns about excessive mandatory overtime in healthcare settings. The Act applies to hospitals and other 'health care facilities' and protects 'health care workers' — generally registered nurses, licensed practical nurses, certified nurse assistants, and other direct-care staff.
The core protection: healthcare workers may decline to work mandatory overtime past their regularly scheduled shifts without facing retaliation. Mandatory overtime cannot be required as a condition of continued employment. Employers cannot discharge, discipline, or otherwise retaliate against a worker who declines mandatory OT. The right extends to all hours past the worker's regularly scheduled shift — meaning a worker scheduled for 12 hours can refuse OT past hour 12 even if they have not yet reached the 40-hour weekly OT threshold under PMWA.
The 'unforeseeable emergent circumstances' exception is narrow. Qualifying circumstances include: declared public emergencies (hurricanes, mass casualty events); sudden patient surges (mass admissions from accidents); urgent patient care needs (surgical emergencies, critical patient deterioration). NOT qualifying: routine staffing shortages; predictable shift demands; chronic understaffing patterns; planned surgical overflow; routine call-outs by other staff. The narrowness means hospitals cannot use 'we're short-staffed' as a basis for mandatory OT.
Coordination with PMWA overtime: Act 102 governs whether OT can be required; PMWA governs how OT is paid. Both apply to healthcare work. A worker who voluntarily accepts OT is paid at PMWA's 1.5× rate for hours past 40. A worker who is improperly required to work mandatory OT under Act 102 has separate civil claims for retaliation, in addition to any PMWA underpayment claims.
Penalty structure: Act 102 violations are subject to civil penalties enforceable by the PA Department of Health and the PA Department of Labor & Industry. Workers also have private right of action for retaliation. Pennsylvania's '8 and 80' overtime rule for healthcare (Act 109 amendment to PMWA) operates separately: it allows hospitals to use a 14-day, 80-hour work period instead of the 40-hour weekly trigger for OT calculation. Act 109 governs OT calculation; Act 102 governs OT refusal. Operating both frameworks simultaneously requires precise scheduling and pay calculation.
Read the full Pennsylvania healthcare act 102 — mandatory ot refusal right guide →
0614-day advance schedules for retail, food service, and hospitality at large employers
Philadelphia's Fair Workweek Employment Standards Ordinance (effective April 1, 2020) requires advance schedule notice and predictability pay for service workers at large employers in the city. Covered employers: retail, food service, and hospitality businesses with 250+ employees globally OR 30+ locations. The thresholds capture most national chains and large local operators while exempting small business.
Advance schedule requirement: schedules must be provided at least 14 days in advance. The 14-day window is significantly longer than other predictive scheduling laws (Seattle 14 days, NYC 14 days, Oregon 14 days, San Francisco 14 days). The longer window forces planning that just-in-time scheduling cannot accommodate.
Predictability pay structure: schedule changes after posting trigger compensation. Schedule additions (extra hours): 1 hour at regular rate. Schedule reductions (shortened shifts): half the lost hours at regular rate. Cancelled shifts: half the scheduled hours at regular rate. The predictability pay applies even if the worker accepts the change — meaning operators face cost on every schedule change regardless of worker disposition.
Right to refuse non-employer-initiated changes: workers can decline schedule changes initiated by the employer without retaliation. Worker-initiated changes (swap requests, time-off requests) are not subject to predictability pay. The framework distinguishes employer convenience from worker preference.
Right to rest between shifts: workers cannot be scheduled to work shifts within 9 hours of the end of the previous shift. If they accept such a shift, the employer must pay $40 in addition to regular wages. Right to request schedule changes: workers can request schedule changes (preferred shifts, days off) and employers must engage in interactive process. Penalty structure: civil penalties enforceable by Philadelphia's Office of Worker Protections, plus private right of action with attorney fees.
Read the full Pennsylvania philadelphia fair workweek — schedule predictability guide →
07Industry-specific ABC test for construction; common-law multi-factor for others
Pennsylvania uses different IC tests for different purposes and industries. For most wage and unemployment compensation purposes, Pennsylvania applies a multi-factor common-law test. Factors include: right of control over how the work is performed; method of payment; worker's investment in tools and equipment; opportunity for profit or loss; permanence of relationship; whether work is part of employer's regular business; skill required; characterization by parties. No single factor is dispositive.
For construction work, the Construction Workplace Misclassification Act (Act 72, 43 P.S. § 933.1 et seq., effective February 10, 2011) imposes a stricter three-prong test. ALL THREE prongs must be satisfied to support IC classification: (A) the individual has a written contract; (B) the individual is free from control or direction in performing the work; AND (C) the individual is customarily engaged in an independently established trade, occupation, profession, or business.
Act 72's three-prong test is structurally similar to Connecticut's, Massachusetts's, and California's ABC tests — though with different specific language. The single-prong-failure rule applies: failure on any one prong defeats IC classification. The Pennsylvania Department of Labor & Industry's Bureau of Labor Law Compliance has built a construction misclassification enforcement practice around Act 72. Construction industry violations are a significant share of misclassification enforcement.
Misclassification creates layered exposure: WPCL wage theft (full back wages, 25% liquidated damages or $500 minimum, attorney fees, plus individual liability for officers/agents); unemployment compensation back-contributions and penalties; workers' compensation premium back-payment plus uninsured exposure for any injuries; tax withholding back-payment (federal and PA state income, FICA, FUTA). Combined exposure on multi-worker classifications can reach 7-figures.
Act 72 also imposes civil penalties on employers found to have intentionally misclassified construction workers: up to $1,000 for first violation, $2,500 for subsequent violations. The PA Office of Attorney General has criminal jurisdiction for willful misclassification under Act 72 — a third-degree misdemeanor for first violation, second-degree for subsequent. Criminal prosecutions are rare but the criminal exposure creates enforcement leverage in civil cases.
08Next regular payday — both discharge and quit — under WPCL
Pennsylvania's Wage Payment and Collection Law (43 P.S. § 260.5) requires final wages to be paid on the next regular payday following the worker's last day — applies to both discharges and voluntary quits. The unified rule contrasts with Connecticut's bifurcated framework (next business day for discharge, next payday for quit) and Massachusetts's date-of-discharge rule.
Final pay components: regular wages through the last day; overtime past 40 hours in any partial week; commissions actually earned per the commission agreement; nondiscretionary bonuses earned and not yet paid; expense reimbursements; and any other amounts owed. Vacation payout is per employer policy (no statutory requirement).
WPCL § 260.9a's individual liability framework applies to final pay violations. Officers, agents, and other persons who knowingly participated in nonpayment can face personal exposure. Combined with 25% liquidated damages or $500 minimum, mandatory attorney fees, and potential criminal exposure under § 260.10, late final pay creates substantial personal and entity-level exposure.
Disputed final pay: employers must pay all undisputed wages within the next-payday timeframe. Withholding the entire final paycheck because of a dispute over a portion exposes the employer to liability for the undisputed portion plus 25% liquidated damages. The Pennsylvania Supreme Court has been clear that disputes over a portion don't justify holding the full amount.
Final pay deductions: employers cannot deduct from final wages for unreturned company property, training costs, or shortages without written authorization on a PA L&I-approved form. Lawsuits to recover the value are permitted, but paycheck deductions without authorization create separate WPCL exposure. The personal liability framework means officers and HR leaders authorizing improper deductions face individual exposure, not just entity-level liability.
Read the full Pennsylvania final pay and termination guide →