The Pennsylvania Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. While the federal minimum wage serves as a baseline, some states and cities adopt higher rates.

Current minimum wage 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).

Compliance note: under the Pennsylvania Minimum Wage Act, local municipalities are strictly prohibited from passing their own private-sector minimum wage laws. Therefore, the $7.25 rate applies universally across all cities and counties in the state, including major metropolitan areas like Philadelphia and Pittsburgh.

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Pennsylvania allows employers to use a "tip credit" to meet their minimum wage obligations, but the state's requirements are significantly more stringent than federal standards.

The rates

• Minimum cash wage: $2.83 per hour.

• Maximum tip credit: $4.42 per hour.

• Total must always equal at least $7.25/hour. If the cash wage + tips do not reach the state minimum, the employer must pay the difference.

The $135 qualification threshold

In Pennsylvania, an employee is only classified as a "tipped employee" if they earn at least $135 per month in tips.

The Credit Card Fee Ban 

Employers are strictly 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 non-cash payment.

Tip pooling and side work (80/20 rule)

• Tip pooling: managers, supervisors, and owners are strictly 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 (e.g., cleaning, restocking, or prep work), the employer must pay the full $7.25 minimum wage for all hours spent on those duties that exceed the 20% threshold.

While Pennsylvania’s overtime laws generally align with the federal 40-hour workweek, the Pennsylvania Minimum Wage Act (PMWA) contains specific calculation rules and industry bans that are much stricter than 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.

  • Note: Pennsylvania does not require daily overtime pay for shifts over 8 hours; it is strictly based on the 40-hour weekly total.

• Ban on half-time: Pennsylvania strictly 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 operate 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 in excess of 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 "small tasks" (ee minimis) exception

In Pennsylvania, every minute counts. The state does not recognize the "de minimis" rule. All mandatory activities—such as 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’s break laws are split into two categories: strict mandates for minors and employer-discretionary rules for adults.

Adult employees (18 and older)

• No mandatory breaks: Pennsylvania state law does not require employers to provide meal or rest breaks to adult employees, regardless of the shift length.

• The "20-Minute" payment rule: if an employer chooses to offer breaks, federal FLSA rules (enforced in PA) dictate how they are paid:

  • Rest breaks (20 mins or less): must be paid and counted as hours worked.

  • Meal periods (30 mins or more): may be unpaid, provided the employee is completely relieved of all duties. If an employee performs any work (e.g., answering a phone), the entire break must be paid.

Minor employees (ages 14–17)

• The 5-hour rule: under the Pennsylvania Child Labor Act, minors may not work more than 5 consecutive hours without an uninterrupted rest/meal break of at least 30 minutes.

• Uninterrupted requirement: this 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):

• The requirement: employers must provide "reasonable" break time for nursing mothers to express milk for up to one year after the child’s birth.

• The space: employers must provide a private, shielded space (that is not a bathroom) for these breaks.

• Payment: these breaks are generally unpaid unless they occur during an already-paid rest break.

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Vacation leave

Pennsylvania law does not require private employers to provide paid or unpaid vacation leave. However, if an employer chooses to offer vacation leave, it is considered a "fringe benefit or wage supplement" under the Pennsylvania Wage Payment and Collection Law (WPCL). Employers must strictly adhere to the terms of their established employment contracts or policies regarding the accrual and payout of vacation time. Employers are required to notify employees of these benefits at the time of hire. Unused vacation time must be paid out upon an employee's separation unless the employer's explicit, written policy dictates otherwise.

Paid sick leave

Pennsylvania does not have a statewide law requiring private employers to provide paid or unpaid sick leave. Any sick leave provided voluntarily by an employer must be administered according to their written policy or contract.

Jurisdictional exceptions: employers must configure their paid time off (PTO) tracking to comply with local mandatory paid sick leave ordinances if they have employees working in the following jurisdictions:

• Philadelphia

• Pittsburgh

• Allegheny County

Additionally, employers with 50 or more employees must 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, nor does it require employers to close their businesses on any specific holiday.

Furthermore, employers are not required to pay a premium rate (such as time-and-a-half) to employees who work on a holiday, unless those hours push the employee's total hours worked over 40 in a single workweek, thereby triggering standard overtime under the Pennsylvania Minimum Wage Act. If an employer establishes a policy to provide holiday pay, it is considered a legally enforceable "fringe benefit" under the WPCL.

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The Pennsylvania Child Labor Act protects the health, safety, and welfare of minors by restricting hours, prohibiting hazardous occupations, and requiring work permits. Employers employing minors must adhere to the following 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 for 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 strictly prohibited from hazardous occupations (e.g., demolition, roofing, working with dangerous machinery) and cannot serve or dispense alcoholic beverages.

Scheduling rules for minors ages 14 and 15

• During the school term:

  • Daily limits: maximum of 3 hours on school days, and 8 hours on non-school days.

  • Weekly limits: maximum of 18 hours per school week (Monday–Friday), plus an allowable 8 additional hours on Saturday and Sunday.

  • Time windows: shifts may only be scheduled between 7 AM and 7 PM.

• During school vacations:

  • Limits: maximum of 8 hours per day and 40 hours per week.

  • Time windows: shifts may only be scheduled between 7 AM and 9 PM.

Scheduling rules for minors ages 16 and 17 

Note: minors who have graduated high school are exempt from these hour and time restrictions.

• During the school term:

  • Daily limits: maximum of 8 hours per day.

  • Weekly limits: maximum of 28 hours per school week (Monday–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).

• During school vacations:

  • Limits: maximum of 10 hours per day and 48 hours per week. (Crucial Compliance Note: 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.

Hiring
Pennsylvania Human Relations Act (PHRA) prohibits hiring discrimination based on the following characteristics:

• Race

• Color

• Religion

• Ancestry

• Age

• Sex

• National origin

• Disability

• Use of a guide or support animal

Firing
Pennsylvania employers have the right to terminate employees at will for nearly any reason and no reason at all provided the reasoning is not unlawful.