The Pennsylvania Minimum Wage Act
The Statute That Sets the Standards for Wage Payment in Pennsylvania
The Pennsylvania Minimum Wage Act is the statute that sets the minimum wage and overtime pay rules in the Commonwealth of Pennsylvania.
Recently the federal minimum wage has been in the news, as lawmakers have attempted to raise it from $7.25 per hour to $15 per hour as part of COVID-19 relief legislation. That attempt has failed so far, but states can set their own minimum wage higher than the federal law—and Pennsylvania is attempting to do so.
Governor Tom Wolf has been pushing to increase Pennsylvania’s minimum wage to $12 per hour, with a $0.50 raise every year until it reaches $15 in 2027. Currently, the state’s minimum wage is $7.25 per hour—the same as the federal minimum wage.
If Governor Wolf achieves this legislative goal, the minimum wage in Pennsylvania would rise to $12 per hour on July 1, 2021. In the meantime, this is the lay of the land for Pennsylvania’s minimum wage.
Thresholds and Exemptions To the Pennsylvania Minimum Wage Act
The Pennsylvania Minimum Wage Act currently requires all employers to pay at least $7.25 an hour, as well as time-and-a-half for overtime for all hours worked over 40 hours in a work week.
However, there are exemptions to minimum wage and overtime pay rules. The exemptions are complex, and factors include the employee’s job title, salary, and job duties.
In general, those who earn above a certain amount and perform certain duties do not qualify to earn overtime pay for hours worked in excess of 40 per week. However, in 2020, Governor Wolf established new laws that raised the threshold for those qualifying for overtime pay—making more people eligible.
Violations of the Pennsylvania Minimum Wage Act
There are a number of ways that employers try to get around minimum wage and overtime pay laws—and these may be difficult to spot. Common strategies include:
· Misclassifying employees as exempt from overtime when their job duties should qualify them for overtime pay.
· Deducting expenses in large enough amounts that the employee’s take-home pay falls below the minimum wage.
· Not making up the difference for tipped employees whose tips don’t raise their take-home pay to the minimum wage.
Companies in violation of the Pennsylvania Minimum Wage Act may be subject to serious fines, penalties, and other legal consequences.
What To Do if Your Employer Is Underpaying You
If you believe that your wages are unlawfully falling below the minimum wage threshold, or that your employer is failing to properly pay you for all work performed or overtime compensation that you are rightfully owed, you should speak to a qualified employment attorney.
You may be entitled to unpaid wages in addition to other damages and attorney’s fees. A knowledgeable employment attorney can assess your situation, determine the extent of the violation, and help you recover what’s owed.
Michael Murphy is the founding member of Murphy Law Group, LLC, in Philadelphia, PA. Mr. Murphy represents residents of both Pennsylvania and New Jersey who are involved in employment-related disputes with their employers.
His offices are located at Eight Penn Center, Suite 1803, 1628 John F. Kennedy Blvd., Philadelphia, PA 19103. He can be reached at (267) 273-1054 or at [email protected].
Read more about Michael Murphy on his Linkedin page or by visiting his website.
The information in this article is not intended to be legal advice. You should consult with an experienced attorney regarding your legal matter. We invite you to contact us to discuss your legal matter. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.