Overview of Pennsylvania's Minimum Wage Requirements
Pennsylvania's minimum wage is currently set at $7.25 per hour, a rate that has remained unchanged since July 24, 2009. This rate aligns with the federal minimum wage. Employers in Pennsylvania are required to pay premium pay after designated hours, typically after 40 hours of work in a week.
The wage distribution of all hourly workers in Pennsylvania has shifted away from wage categories below $15.01. The median wage increased from $17.00 in 2021 to $18.16 in 2022.
Understanding Local Minimum Wage Variations
The minimum wage in Pennsylvania is consistent across all counties, including Philadelphia County, Allegheny County, Montgomery County, Bucks County, and Delaware County, at $7.25 per hour. However, there is a bill that has been passed by the Pennsylvania Democratic-controlled House of Representatives proposing to increase the state's minimum wage to $15.00 per hour by 2026.
The proposed increase is planned to be gradual, with the wage changing from $7.25 to $11.00 in the first year, then to $13.00 in 2025, and finally to $15.00 in 2026. The legislation also includes plans to raise the tipped wage to 60% of the minimum wage from the current $2.83 per hour.
Minimum Wage Eligibility and Exemptions
In Pennsylvania, the Minimum Wage Act stipulates that employers are required to pay their employees a minimum wage of $7.25 per hour. However, there are exemptions to these rules. Employees working in executive, administrative, or professional capacities may be exempt from the minimum wage and overtime rules, provided they meet specific salary and job duty criteria.
Certain job roles do not qualify for these exemptions. These include roles such as bookkeepers, social workers, secretaries, and nurses. It's crucial to understand that the actual daily job duties and what the employment contract states determine if an employee is eligible for overtime.
Minimum Wage Considerations and Compliance Tips
For food business employers in Pennsylvania, there are specific rules for tipped workers. All tips and gratuities paid by credit card or other non-cash method of payment are the property of the employee receiving them, and employers are prohibited from deducting any credit card or other payment processing fees from employees' tips.
Employers are required to ensure that the base hourly wage plus tips equals at least $7.25 per hour. If a tip-credited employee earns less than $7.25 per hour, including their base hourly wage plus tips, the employer must make up the difference.
FAQs
- What is the current minimum wage in Pennsylvania? The current minimum wage in Pennsylvania is $7.25 per hour.
- Are there any plans to increase the minimum wage in Pennsylvania? There is a bill proposing to increase the state's minimum wage to $15.00 per hour by 2026.
- Who is exempt from the minimum wage in Pennsylvania? Employees working in executive, administrative, or professional capacities may be exempt from the minimum wage and overtime rules.
Information Source Links
- Pennsylvania Department of Labor & Industry's Wage FAQs
- U.S. Department of Labor's page on minimum wage for tipped employees
- Pennsylvania Department of Labor & Industry website
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