Minimum Wage Regulations
Pennsylvania’s minimum wage rate is currently $7.25 per hour which is the same as the federal rate. For tipped employees, the minimum wage rate is $2.83 per hour which is higher than the federal rate of $2.13 per hour. The employer must make up the difference if tips and the hourly rate do not meet the Pennsylvania minimum wage rate
Under Pennsylvania labor laws
, overtime pay of at least 1 ½ times the employee’s regular wage rate must be paid for all hours worked over 40 in a workweek.
Under Pennsylvania labor laws, computer employees are not considered exempt as under federal law and, therefore, may be entitled to overtime, unless covered by another exemption.
Pennsylvania labor laws also do not provide an overtime exemption for employees earning more than $100,000 per year as does the federal law.
Outside sales employees in Pennsylvania must spend more than 80% of their work time away from the employer’s place of business making sales, a more demanding requirement than FLSA’s “primary duty” test. If an employee does not meet these requirements, but is designated as an “outside sales” employee, he may be due unpaid overtime.
Pennsylvania labor law also differs from federal law in that it does not allow the use of the fluctuating workweek method (aka Chinese Overtime) of paying overtime to salaried workers whose workweek fluctuates above and below 40 hours per week.
Holidays / Vacation
Pennsylvania labor laws do not require that an employee be given paid holidays off or additional pay for working on a holiday. Employers are also not required to provide benefits like sick leave, vacation pay or severance pay. If provided, the employer must follow its own policies for these types of payments.
Meal Breaks / Rest Periods
Meal and rest breaks are not required for employees 18 and over. Minors between 14 and 17 years old must receive a meal break of at least 30 minutes if they work 5 or more consecutive hours.
If an employer does give a break and the break is less than 20 minutes, employees must be paid for this time. If employees are given a meal break lasting more than 20 minutes and are relieved of all work during this period, the employee does not have to pay for this time.
Employers must pay employees on regularly scheduled paydays designated by the employer. Employees must be informed at hiring of the time and place of payment and the pay rate and fringe benefits to be paid.
The time between the end of the pay period and the payday must not exceed:
- Time specified in a written contract between the employer and employee
- The standard customary in the trade, or
- 15 days.
Employers may make deductions from wages that are required by law. In addition, employees may give written permission for deductions to be made that benefit the employee; e.g., to pay back a loan from a third party. Blanket authorizations signed at hiring will not be valid. Deductions generally, cannot reduce gross pay below minimum wage.
Pennsylvania labor laws require that employees be provided with a pay stub for each pay period. The stub must show the beginning and ending dates of the pay period, the number of hours worked, the pay rate, the amount earned, itemized deductions, and net pay.
Statute of Limitations
An employee may recover unpaid wages under the Pennsylvania Wage Payment
and Collection Law going back 3 years from the date the wages were due and payable.