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Minimum Wage in Pennsylvania in 2023

Last Updated on:

09 January 2023
Minimum Wage in Pennsylvania

The federally mandated minimum wage is the lowest hourly wage a company can legally pay an employee. At the beginning of the 20th century, most countries passed laws establishing a minimum wage to provide workers with fundamental protections. 

If you question different people, you can get different answers about whether or not the minimum wage in any country is fitted explicitly to its labor. The most important thing to remember is that even within the same country, it can be different from one state to the next.  

This post was inspired, in part, by research concerning the minimum wage in the state of Pennsylvania and other topics of a similar nature. Continue reading this article if you are curious about the minimum wage in the form of Pennsylvania. 

What is the Minimum Wage in Pennsylvania? 

The minimum wage in Pennsylvania in 2023 is $7.25, which is the same as the federal minimum wage for all employees, excluding state employees. But Pennsylvania's minimum wage was last changed in 2009, increasing by $0.10 from the previous minimum wage to $7.25.

Moreover, students and apprentices are paid 85% of the minimum wage in Pennsylvania, including certain other employees with disabilities. In addition, the tips minimum wage is $2.83 per hour for those who do not work more than 20% of a 7-day pre-planned workweek and do not receive any tips directly from that work. 

Weekly Minimum Wage

The minimum wage for an employee in Pennsylvania is $290.00, where that employee must work 40 hours a week, 52 weeks a year. 

Overtime Minimum Wage 

Pennsylvania overtime laws set an overtime minimum wage of $10.88 per hour for those employees who work more than 40 hours a week. It entitles employees to 1.5 times the standard minimum wage rate for putting in over 40 hours weekly.  

Difference Between the Minimum Wage and Federal Minimum Wage 

The minimum wage in Pennsylvania is the same as the federal minimum wage of $7.25 per hour. According to the Pennsylvania minimum wage Act, employees are entitled to the minimum wage unless they work in exempt jobs. In addition, employees working in exceptional jobs are paid under the minimum wage, including tipped employees and student workers. The federal minimum wage for tipped employees is $2.13 per hour, whereas the state's tipped minimum wage is $2.83 per hour. 

To get paid the minimum wage and avoid penalties in the workplace, the Pennsylvania State Labor Law and the Fair Labor Standards Act require all employees to have a visible state minimum wage poster and a federal and state labor law poster that ensures their compliance with federal and state labor laws and overtime-regulations. 

Pennsylvania Minimum Wage Rules

Pennsylvania enacted new minimum wage rules as part of the updated Minimum Wage Act, mainly affecting tipped employees. These rules have an impact in the following areas that include-

  • The new rules will include updated federal regulations and allow employees to tip pooling. However, managers, supervisors, and business owners are excluded from this rule. 
  • According to the new wage rules, employees can receive additional tips from any payment source, which will be considered a gratuity or monetary contribution. Employers cannot deduct any portion of the tipped amount from employees.
  • The new rule aims to increase the tipped wage, but an employee must accept that tip before the wage rate goes down to 2.83$ per hour from $7.25 per hour.
  • The new rule mandates employers to give a clear statement regarding the automatic service charge, which clarifies that the tips from that will not be included in the monetary contribution.
  • The new regulations allow employers to administer and intervene in tip credits under a specific condition, known as the 80/20 rule. The condition applies whenever an employee spends at least 80% of the time performing duties that may generate tips.

1. Tip-Pooling

With the approval of the Department of Labor (DOL), the tip-pooling process allows tipped employees to receive an additional tip, excluding their job's minimum wage. It includes all employees paid at least minimum wage or more, but it excludes managers, supervisors, or business owners if they are not directly providing services.

2. The 80/20 Rule

According to the 80/20 rules, an employer cannot take tip credit from an employee unless he spends more than 20 percent of weekly working hours generating tips. The duties that generate tips directly include taking orders from customers and serving them, making alcoholic drinks and beverages, and preparing tables during processing payments.

Other Rules of Pennsylvania Minimum Wage

There are a few other specific rules that directly mandate employers to pay employees the minimum wage under the Pennsylvania Labor Law Guide, including subminimum wage rules, payment method rules, overtime minimum wage rules, child labor rules, and miscellaneous labor rules.

1. Subminimum Wage Rules

A subminimum wage in Pennsylvania allows employees to have a minimum wage that is not the same as the federal minimum wage or state minimum wage; in fact, lower than both the minimum wage rates. Two types of subminimum wage in Pennsylvania include the training wage and the minimum wage for disabled employees. Though the training wage is now not in effect, the minimum wage for disabled employees is still in the run. DOL sets the minimum wage rate for disabled employees, and employers also need a special verification certificate to pay employees this subminimum wage.

2. Overtime Minimum Wage Rules

An overtime minimum wage rule regulates the minimum wage based on an employee's working hours, which exceeds 40 weekly. Employers must pay 1.5 times the minimum standard hourly wage for an employee's overtime hours.

3. Payment Rules

Along with paying the minimum wage, state laws mandate employers to set a transparent payment process on a specific payday of the payment period. The payment process would include a specified date in the contract between the employer and employees, a traditional standard time-lapse within the operating trade, and an extra 15 days if the payment failed to proceed in time.  

History of Minimum wage in Pennsylvania

Year

Min. Wage

Wage Increase

% increase

2023

$7.25

$0

0%

2022

$7.25

$0

0%

2021

$7.25

$0

0%

2020

$7.25

$0

0%

2019

$7.25

$0

0%

2018

$7.25

$0

0%

2017

$7.25

$0

0%

2016

$7.25

$0

0%

2015

$7.25

$0

0%

2014

$7.25

$0

0%

2013

$7.25

$0

0%

2012

$7.25

$0

0%

2011

$7.25

$0

0%

2010

$7.25

$0

0%

2009

$7.25

$0.10

1.4%

2008

$7.15

$0.40

5.92%

2007

$6.75

$1.60

31.06%

2006

$5.15

$0

0%

2005

$5.15

$0

0%

2004

$5.15

$0

0%

2003

$5.15

$0

0%

2002

$5.15

$0

0%

2001

$5.15

$0

0%

2000

$5.15

$0

0%

Who are Exempt from Receiving the Minimum Wage in Pennsylvania?

The employees of the following list are exempt from receiving the minimum wage in Pennsylvania, which include-

  • Employees who are involved in agricultural work
  • Employees who are involved in sales or repairing vehicles.
  • Employees who work as theater artists in motion pictures
  • Employees who drive taxi-cab.
  • Administrative Executives, Executives.
  • Employees in less than 100,000 populated cities are not a part of metropolitan areas.
  • Employees in less than 25,000 populated cities are a part of metropolitan areas but at least 40 airlines miles from the principal city. 

FAQ

1. Why has the Minimum Wage in Pennsylvania remained unchanged?

The federal minimum wage has remained unchanged since 2009, Pennsylvania's state minimum wage has yet to change. Although some state employees are paid more than the state minimum wage, there is no significant change in the state minimum wage for all employees. 

2. Will the Minimum Wage in Pennsylvania increase in 2024?

While most states plan to increase the minimum wage for hourly workers within 2024, 12 still maintain the same minimum wage as the Federal minimum. Pennsylvania is one of 12 states with a minimum wage equal to the federal minimum wage of $7.25.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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