The Pennsylvania Labor Law Guide

Minimum wage is the lowest hourly rate an employer can legally pay. The federal rate is the baseline, and some states and cities set higher rates.

Current rates

• Standard rate: $7.25 per hour for most non-exempt private-sector employees.
• State contractors: $15.00 per hour for employees performing work under a contract or lease with the Commonwealth of Pennsylvania (mandated by Executive Order).

Under the Pennsylvania Minimum Wage Act, local municipalities are prohibited from passing their own private-sector minimum wage laws. So the $7.25 rate applies across every city and county in the state, including Philadelphia and Pittsburgh.

Pennsylvania lets employers use a "tip credit" to meet the minimum wage, but the state's requirements are notably stricter than federal standards.

The rates

• Minimum cash wage: $2.83 per hour.
• Maximum tip credit: $4.42 per hour.
• The total must always equal at least $7.25 per hour. If the cash wage plus tips do not reach the state minimum, the employer pays the difference.

The $135 qualification threshold

An employee counts as a "tipped employee" only if they earn at least $135 per month in tips.

The credit card fee ban

Employers are prohibited from deducting credit card processing fees or any other transaction fees from employee tips. The employee must receive the full amount of any tip left on a credit card or other non-cash payment.

Tip pooling and side work (the 80/20 rule)

• Tip pooling: managers, supervisors, and owners are prohibited from participating in a tip pool. They may only keep tips they earned for service they performed "solely and directly."
• The 80/20 rule: if an employee spends more than 20% of their workweek on non-tipped "supporting" duties (cleaning, restocking, or prep work), the employer must pay the full $7.25 minimum wage for all hours spent on those duties above the 20% threshold.

Pennsylvania's overtime rules generally align with the federal 40-hour workweek, but the Pennsylvania Minimum Wage Act (PMWA) has specific calculation rules and industry bans that go beyond federal standards.

The baseline requirement

• Overtime threshold: all non-exempt employees must be paid overtime for any hours worked over 40 in a single workweek.
• Overtime rate: 1.5 times the employee's "regular rate" of pay. Pennsylvania does not require daily overtime for shifts over 8 hours; it is based strictly on the 40-hour weekly total.
• Ban on half-time: Pennsylvania prohibits the "fluctuating workweek" or "half-time" method. Employers must pay the full 1.5x premium for all overtime hours.

Healthcare mandatory overtime ban (Act 102)

If you run a healthcare facility (hospitals, hospices, or nursing homes), Pennsylvania law prohibits mandatory overtime for most direct patient-care employees.

• Employers cannot require these employees to work beyond their agreed-upon, predetermined shift.
• Overtime for these workers must be voluntary, except in cases of unforeseeable emergent circumstances or active patient procedures that cannot be safely interrupted.

No de minimis exception

In Pennsylvania, every minute counts. The state does not recognize the "de minimis" rule. All mandatory activities (security checks, pre-shift meetings, or closing tasks) must be tracked and paid at the overtime rate if they push an employee over the 40-hour mark.

Pennsylvania splits break rules in two: strict mandates for minors, and employer discretion for adults.

Adult employees (18 and older)

• No mandatory breaks: Pennsylvania state law does not require meal or rest breaks for adult employees, regardless of shift length.
• If an employer chooses to offer breaks, federal FLSA rules (enforced in PA) govern how they are paid.
• Rest breaks of 20 minutes or less must be paid and counted as hours worked.
• Meal periods of 30 minutes or more may be unpaid, provided the employee is completely relieved of all duties. If the employee performs any work (such as answering a phone), the entire break must be paid.

Minor employees (ages 14 to 17)

• The 5-hour rule: under the Pennsylvania Child Labor Act, minors may not work more than 5 consecutive hours without an uninterrupted rest or meal break of at least 30 minutes.
• Uninterrupted requirement: the break must be "duty-free." If a minor is required to stay at a station or remain "on call," the break does not count toward this legal requirement.

Lactation accommodations (PUMP Act)

• Employers must provide "reasonable" break time for nursing mothers to express milk for up to one year after the child's birth.
• Employers must provide a private, shielded space that is not a bathroom.
• These breaks are generally unpaid unless they occur during an already-paid rest break.

Vacation leave

Pennsylvania law does not require private employers to provide paid or unpaid vacation leave. If an employer does offer it, it counts as a "fringe benefit or wage supplement" under the Pennsylvania Wage Payment and Collection Law (WPCL). Employers must follow the terms of their established employment contracts or policies on accrual and payout, and must notify employees of these benefits at the time of hire. Unused vacation must be paid out on separation unless the employer's explicit, written policy says otherwise.

Paid sick leave

Pennsylvania has no statewide law requiring private employers to provide paid or unpaid sick leave. Any sick leave offered voluntarily must be administered according to the employer's written policy or contract.

Employers must configure their PTO tracking to comply with local mandatory paid sick leave ordinances if they have employees working in these jurisdictions:

• Philadelphia
• Pittsburgh
• Allegheny County

Employers with 50 or more employees must also comply with the unpaid leave requirements of the federal Family and Medical Leave Act (FMLA).

Holidays

Pennsylvania state law does not require private employers to provide paid or unpaid holiday leave, and does not require closing on any specific holiday.

Employers are not required to pay a premium rate (such as time-and-a-half) for holiday work, unless those hours push the employee over 40 in a single workweek, which triggers standard overtime under the PMWA. If an employer sets up a policy to provide holiday pay, it becomes a legally enforceable "fringe benefit" under the WPCL.

The Pennsylvania Child Labor Act protects the health, safety, and welfare of minors by limiting hours, banning hazardous occupations, and requiring work permits. Employers with minors must follow these statewide mandates:

• Mandatory breaks: no minor may be scheduled for more than 5 continuous hours without a 30-minute meal break.
• Consecutive days: minors cannot be scheduled to work more than 6 consecutive days.
• Work permits and notifications: all minors must hold a valid work permit issued by their school district. Employers must notify the issuing officer within 5 days of the minor's start and end of employment.
• Parental consent: minors under 16 must provide a written statement from a parent or guardian acknowledging the duties and hours of employment.
• Prohibited occupations: minors of all ages are prohibited from hazardous occupations (such as demolition, roofing, and working with dangerous machinery) and cannot serve or dispense alcoholic beverages.

Minors ages 14 and 15: during the school term

• Daily limits: max 3 hours on school days, and 8 hours on non-school days.
• Weekly limits: max 18 hours per school week (Monday to Friday), plus an allowable 8 additional hours on Saturday and Sunday.
• Time windows: shifts may only be scheduled between 7 AM and 7 PM.

Minors ages 14 and 15: during school vacations

• Limits: max 8 hours per day and 40 hours per week.
• Time windows: shifts may only be scheduled between 7 AM and 9 PM.

Minors ages 16 and 17: during the school term

Minors who have graduated high school are exempt from these hour and time restrictions.

• Daily limits: max 8 hours per day.
• Weekly limits: max 28 hours per school week (Monday to Friday), plus an allowable 8 additional hours on Saturday and Sunday.
• Time windows: shifts may only be scheduled between 6 AM and 12 AM (midnight).

Minors ages 16 and 17: during school vacations

• Limits: max 10 hours per day and 48 hours per week. A minor may refuse any scheduled request to work more than 44 hours in a single week without retaliation.
• Time windows: shifts may only be scheduled between 6 AM and 1 AM.

Philadelphia enacted its Fair Workweek Ordinance to give employees in retail, hospitality, and food service more predictable schedules and steadier income. It applies to covered employers in those industries with 250 or more employees worldwide and 30 or more locations worldwide. Key requirements:

• Good faith estimates: employers must provide a written estimate of an employee's expected work schedule at hire, reflecting a typical 90-day period (expected hours, days, times, and on-call expectations).
• Advance notice: work schedules must be posted at least 14 days in advance.
• Predictability pay: employers must pay a premium for schedule changes made after the 14-day notice period. Adding time or changing a shift requires one hour of predictability pay; reducing or canceling a shift requires pay at one-half the regular rate for the lost hours.
• Right to decline: employees may decline any additional hours or shifts not in the original posted schedule without fear of retaliation.
• Right to rest: employees must get at least 9 hours of rest between shifts. If an employee consents to work during that rest period, the employer must pay a flat $40 premium.
• Access to hours: employers must offer available shifts to qualified existing employees before hiring new staff or using contractors.