On this pageWhat is the state minimum wage, and how does it relate to the federal floor?
State Law Practice Guide

Wage and Hour Law in Pennsylvania

A question-by-question summary of Pennsylvania wage and hour law, covering the state minimum wage that tracks the federal $7.25 floor through a statutory ratchet, the weekly-only overtime rule, the absence of any adult meal-or-rest-break mandate, the Wage Payment and Collection Law rules on final pay, pay frequency, and its 25%-or-$500 liquidated-damages penalty, the FLSA economic-realities test for general worker status alongside the strict construction-only test under Act 72, and the partial tip credit that sets a $2.83 cash wage.

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Pennsylvania splits its wage-and-hour rules between two statutes and one regulation. The Minimum Wage Act of 1968 sets the wage floor and the overtime rule, but it pegs the floor to the federal Fair Labor Standards Act rather than to any state schedule — so the Pennsylvania minimum wage is still $7.25 an hour, the same as the federal figure, with no state overtime tier and no adult break mandate. Where Pennsylvania is more demanding than federal law is on the back end of the pay cycle: the Wage Payment and Collection Law governs final pay and pay frequency, arming employees with a 25%-or-$500 liquidated-damages penalty, mandatory attorney's fees, and a three-year limitations period, while the Minimum Wage regulation (34 Pa. Code § 231.36) requires an itemized pay statement with every check. This note walks through each rule an in-house team has to get right for a Pennsylvania workforce. For the cross-state framework, see the wage and hour practice guide.

What is the minimum wage?

Pennsylvania's minimum wage is $7.25 an hour — identical to the federal floor, because the state statute ratchets against it rather than setting its own higher rate. The Minimum Wage Act's own rate schedule tops out at $7.15, but a ratchet provision then raises the state wage automatically whenever the federal minimum climbs above it, and suspends the lower state figures to the extent they differ . Because the federal minimum has stood at $7.25 since 2009, the regulation implementing the ratchet states the operative rate directly: an employer shall pay at least $7.25 an hour to all employees for all hours worked . There is no Pennsylvania CPI indexing formula and no enacted state-only step schedule. Local governments cannot fill the gap for private employers, because the Act preempts local wage ordinances adopted on or after January 1, 2006 .

Because the state wage is defined by reference to the federal one, no separate Pennsylvania vote or index is needed to move it — the rate rises only when Congress raises the FLSA floor.

If the minimum wage set forth in the Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.) is increased above the minimum wage required under this section, the minimum wage required under this section shall be increased by the same amounts and effective the same date as the increases under the Fair Labor Standards Act, and the provisions of subsection (a) are suspended to the extent they differ from those set forth under the Fair Labor Standards Act.

The Minimum Wage Act also displaces local wage-setting for private employers: a municipality may still set wages for its own workforce, but it cannot impose a private-sector minimum wage through an ordinance adopted after the 2006 cutoff.

Except as set forth in subsection (b), this act shall preempt and supersede any local ordinance or rule concerning the subject matter of this act.

Sources for this answer

Primary law

A.1 Minimum Wage Act, 43 P.S. § 333.104

Section 4(a.1) of the Pennsylvania Minimum Wage Act ratchets the state minimum wage up to match any FLSA increase above the state rate and suspends the lower state figures, so the Pennsylvania floor tracks the federal $7.25 minimum.

If the minimum wage set forth in the Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.) is increased above the minimum wage required under this section, the minimum wage required under this section shall be increased by the same amounts and effective the same date as the increases under the Fair Labor Standards Act, and the provisions of subsection (a) are suspended to the extent they differ from those set forth under the Fair Labor Standards Act.

See 43 P.S. § 333.104(a.1).

Primary law

A.2 34 Pa. Code § 231.101aPDF

The Minimum Wage regulation implementing the statutory ratchet fixes the current operative rate at $7.25 an hour for all hours worked, subject to the Act's exclusions and exemptions.

Under section 4(a.1) of the act (43 P.S. § 333.104(a.1)), an employer shall pay at least $7.25 an hour to all employees for all hours worked subject to exclusions and exemptions contained in the act and this chapter.

See 34 Pa. Code § 231.101a(a).

Primary law

A.3 Minimum Wage Act, 43 P.S. § 333.114a

Section 14.1 of the Minimum Wage Act preempts local wage ordinances concerning the subject matter of the Act (subject to a grandfather clause for pre-2006 ordinances), so no Pennsylvania locality sets a generally applicable private-sector minimum wage above the state figure.

Except as set forth in subsection (b), this act shall preempt and supersede any local ordinance or rule concerning the subject matter of this act.

See 43 P.S. § 333.114a(a).

When is overtime owed?

Overtime in Pennsylvania is a weekly rule, not a daily one. Covered employees must be paid one and one-half times their regular rate for all hours over 40 in a workweek, and the Minimum Wage regulation states that standard in the same terms as the federal FLSA — with no daily-overtime tier and no double-time requirement . The workweek is a fixed, recurring seven-day period, and overtime earned in one week cannot be offset by comp time given in another; private-sector compensatory time off in lieu of overtime pay is not permitted.

The regulation sets the operative rule that a Pennsylvania payroll system must apply — a full time-and-a-half premium on all hours past 40 in the week, and nothing more. Because the ceiling is weekly, there is no premium for a long single day and no double-time obligation; where Pennsylvania is silent on daily overtime the federal FLSA floor, which is also weekly, governs.

Except as otherwise provided in section 5(a)—(c) of the act (43 P. S. § 333.105(a)—(c)), each employee shall be paid for overtime not less than 1-1/2 times the employee’s regular rate of pay for all hours in excess of 40 hours in a workweek.

Sources for this answer

Primary law

B.1 34 Pa. Code § 231.41PDF

The Minimum Wage regulation, implementing section 4(c) of the Minimum Wage Act, requires overtime at not less than 1.5 times the regular rate for all hours over 40 in a workweek — a weekly-only standard with no daily-overtime or double-time tier.

Except as otherwise provided in section 5(a)—(c) of the act (43 P. S. § 333.105(a)—(c)), each employee shall be paid for overtime not less than 1-1/2 times the employee’s regular rate of pay for all hours in excess of 40 hours in a workweek.

See 34 Pa. Code § 231.41.

Are breaks required?

No — not for adults. Pennsylvania wage-and-hour law does not require meal or rest breaks for employees 18 and over; break policy is left to the employer and to the FLSA rules on which breaks count as paid time. The one clear state break mandate is for minors: the Child Labor Act requires a 30-minute rest break for any minor who works more than five continuous hours . For the adult workforce there is no state entitlement to a meal or rest break and no missed-break premium of the kind California imposes.

The child-labor break rule is the exception that proves the rule — Pennsylvania legislated a break entitlement only for minors, and stopped there. The core requirement is a 30-minute interval once a minor has worked five continuous hours, and a shorter gap does not reset the clock.

No minor may be employed for more than five hours continuously without an interval of at least 30 minutes for a rest break. No period of less than 30 minutes shall be deemed to interrupt a continuous period of work.

For adults, break compensation is a matter of federal law: under the FLSA, short rest breaks of roughly five to twenty minutes that an employer offers are compensable working time, while a bona fide meal period of thirty minutes or more, during which the employee is fully relieved of duty, need not be paid. Pennsylvania adds nothing on top for adult workers.

Sources for this answer

Primary law

C.1 Child Labor Act, 43 P.S. § 40.3

Pennsylvania mandates breaks only for minors: the Child Labor Act requires a 30-minute rest break for any minor employed more than five continuous hours, and imposes no meal-or-rest-break requirement on adult employees.

No minor may be employed for more than five hours continuously without an interval of at least 30 minutes for a rest break. No period of less than 30 minutes shall be deemed to interrupt a continuous period of work.

See 43 P.S. § 40.3(a).

When is final pay due?

Final wages are due on the next regular payday — and Pennsylvania treats a discharge and a voluntary quit exactly the same. Under the Wage Payment and Collection Law, when an employer separates an employee from the payroll, or the employee quits or resigns, the earned wages become due and payable no later than the next regular payday on which they would otherwise have been paid . There is no accelerated day-of-discharge deadline; if the employee asks, the final payment must be sent by certified mail. What gives the deadline teeth is the WPCL's penalty structure, covered in the next question.

Because the timing turns on the ordinary pay cycle rather than the manner of separation, an involuntary termination and a resignation are on the same footing — both are paid out at the next scheduled payday.

Whenever an employer separates an employe from the payroll, or whenever an employe quits or resigns his employment, the wages or compensation earned shall become due and payable not later than the next regular payday of his employer on which such wages would otherwise be due and payable.

Sources for this answer

Primary law

D.1 Wage Payment and Collection Law, 43 P.S. § 260.5

Under the WPCL, final wages on separation — whether the employee is discharged or quits — are due no later than the next regular payday on which they would otherwise have been paid.

Whenever an employer separates an employe from the payroll, or whenever an employe quits or resigns his employment, the wages or compensation earned shall become due and payable not later than the next regular payday of his employer on which such wages would otherwise be due and payable.

See 43 P.S. § 260.5(a).

What is the penalty for paying late?

Pennsylvania punishes a late or missing paycheck with liquidated damages, not a per-day waiting-time penalty. Where wages remain unpaid for 30 days beyond the regularly scheduled payday and no good-faith dispute exists, the employee may claim, on top of the wages owed, liquidated damages equal to 25% of the total wages due or $500, whichever is greater . The good-faith-dispute carve-out is a genuine safe harbor: an employer that withholds a bona fide contested amount — while unconditionally paying the undisputed portion — avoids the penalty on the disputed sum. The penalty is one lever of the WPCL enforcement scheme discussed under enforcement below.

The 25%-or-$500 floor is what makes even small systematic payroll errors expensive at scale, and it is the WPCL's signature remedy.

Where wages remain unpaid for thirty days beyond the regularly scheduled payday, or, in the case where no regularly scheduled payday is applicable, for sixty days beyond the filing by the employe of a proper claim or for sixty days beyond the date of the agreement, award or other act making wages payable, or where shortages in the wage payments made exceed five percent (5%) of the gross wages payable on any two regularly scheduled paydays in the same calendar quarter, and no good faith contest or dispute of any wage claim including the good faith assertion of a right of set-off or counter-claim exists accounting for such non-payment, the employe shall be entitled to claim, in addition, as liquidated damages an amount equal to twenty-five percent (25%) of the total amount of wages due, or five hundred dollars ($500), whichever is greater.

Practice caution

The liquidated-damages penalty turns on the absence of a good-faith dispute — an employer that pays the undisputed portion and documents a bona fide contest over the rest can withhold the disputed amount without triggering the 25%-or-$500 add-on .

Sources for this answer

Primary law

E.1 Wage Payment and Collection Law, 43 P.S. § 260.10

The WPCL entitles an employee to liquidated damages of 25% of the total wages due or $500, whichever is greater, when wages remain unpaid for 30 days beyond the scheduled payday and no good-faith dispute over the wages exists.

Where wages remain unpaid for thirty days beyond the regularly scheduled payday, or, in the case where no regularly scheduled payday is applicable, for sixty days beyond the filing by the employe of a proper claim or for sixty days beyond the date of the agreement, award or other act making wages payable, or where shortages in the wage payments made exceed five percent (5%) of the gross wages payable on any two regularly scheduled paydays in the same calendar quarter, and no good faith contest or dispute of any wage claim including the good faith assertion of a right of set-off or counter-claim exists accounting for such non-payment, the employe shall be entitled to claim, in addition, as liquidated damages an amount equal to twenty-five percent (25%) of the total amount of wages due, or five hundred dollars ($500), whichever is greater.

See 43 P.S. § 260.10.

How often must workers be paid?

Pennsylvania does not mandate a specific payroll cadence — no rule fixes weekly versus biweekly versus semi-monthly pay by employee class — but it does set when earned wages must be handed over. The Wage Payment and Collection Law requires employers to pay wages on regular paydays designated in advance , and it fixes the payment timing through a fallback ladder: wages earned in a pay period are due within the number of days set by a written employment contract or, if the contract does not specify, within the customary trade lapse or within 15 days of the end of the pay period . Separately, the Minimum Wage regulation requires an itemized pay statement with every payment, listing hours, rates, gross wages, allowances, deductions, and net wages .

So Pennsylvania is best understood as a regular-payday state rather than a fixed-cadence state: the employer picks the schedule and announces it in advance, and the payment deadline follows the written contract or, where the contract is silent, the customary trade lapse or a 15-day fallback.

Every employer shall pay all wages, other than fringe benefits and wage supplements, due to his employes on regular paydays designated in advance by the employer.

The 15-day rule is the ceiling on the gap between the close of a pay period and the paycheck, absent a contract or customary trade practice that sets a shorter one.

All wages, other than fringe benefits and wage supplements, earned in any pay period shall be due and payable within the number of days after the expiration of said pay period as provided in a written contract of employment or, if not so specified, within the standard time lapse customary in the trade or within 15 days from the end of such pay period.

Every paycheck must also carry a detailed statement — the regulation names the six data elements a compliant Pennsylvania pay stub must show.

Every employer shall furnish to each employee a statement with every payment of wages, listing hours worked, rates paid, gross wages, allowances, if any, claimed as part of the minimum wage, deductions and net wages.

Sources for this answer

Primary law

F.1 Wage Payment and Collection Law, 43 P.S. § 260.3

The WPCL requires employers to pay wages on regular paydays designated in advance, rather than prescribing a specific weekly, biweekly, or monthly cadence.

Every employer shall pay all wages, other than fringe benefits and wage supplements, due to his employes on regular paydays designated in advance by the employer.

See 43 P.S. § 260.3(a).

Primary law

F.2 Wage Payment and Collection Law, 43 P.S. § 260.3

The WPCL sets an outer payment deadline: wages earned in a pay period are due within the contractually specified time, the customary trade lapse, or 15 days after the end of the pay period.

All wages, other than fringe benefits and wage supplements, earned in any pay period shall be due and payable within the number of days after the expiration of said pay period as provided in a written contract of employment or, if not so specified, within the standard time lapse customary in the trade or within 15 days from the end of such pay period.

See 43 P.S. § 260.3(a).

Primary law

F.3 34 Pa. Code § 231.36PDF

The Minimum Wage regulation requires an itemized statement with every wage payment, listing hours worked, rates paid, gross wages, allowances claimed as part of the minimum wage, deductions, and net wages.

Every employer shall furnish to each employee a statement with every payment of wages, listing hours worked, rates paid, gross wages, allowances, if any, claimed as part of the minimum wage, deductions and net wages.

See 34 Pa. Code § 231.36.

Employee or independent contractor?

Pennsylvania has no single wage-and-hour classification test — the answer depends on the statute invoked. For minimum-wage and overtime claims under the Minimum Wage Act, which contains no stand-alone contractor definition, courts applying Pennsylvania law borrow the FLSA economic-realities framework, asking whether the worker is economically dependent on the business rather than in business for themselves. Construction is the sharp exception: the Construction Workplace Misclassification Act (Act 72) imposes a strict statutory test, treating a construction worker as an independent contractor only if there is a written contract, freedom from control, and a genuinely independent business . Act 72 also demands concrete proof of independence, including the worker's own liability insurance of at least $50,000 .

For most of the workforce the test is the federal economic-realities analysis, which weighs control, the worker's opportunity for profit or loss, investment, skill, permanence, and how integral the work is to the business — no single factor controls. But for the building trades, Act 72 substitutes a rigid three-part statutory standard.

For purposes of workers' compensation, unemployment compensation and improper classification of employees provided herein, an individual who performs services in the construction industry for remuneration is an independent contractor only if: (1) The individual has a written contract to perform such services. (2) The individual is free from control or direction over performance of such services both under the contract of service and in fact. (3) As to such services, the individual is customarily engaged in an independently established trade, occupation, profession or business.

The Act backs the third prong with documentary criteria that a genuine independent business must satisfy, one of which is carrying substantial liability coverage.

The individual maintains liability insurance during the term of this contract of at least $50,000.

Practice caution

Do not assume one classification answer carries across Pennsylvania statutes: a worker treated as a contractor for a minimum-wage claim under the economic-realities test may still be an employee under Act 72's stricter construction-industry criteria .

Sources for this answer

Primary law

G.1 Construction Workplace Misclassification Act, 43 P.S. § 933.3

Act 72 treats a construction worker as an independent contractor only if there is a written contract, freedom from control in contract and in fact, and the worker is customarily engaged in an independently established business — a strict statutory test distinct from the FLSA economic-realities analysis used for general wage claims.

For purposes of workers' compensation, unemployment compensation and improper classification of employees provided herein, an individual who performs services in the construction industry for remuneration is an independent contractor only if: (1) The individual has a written contract to perform such services. (2) The individual is free from control or direction over performance of such services both under the contract of service and in fact. (3) As to such services, the individual is customarily engaged in an independently established trade, occupation, profession or business.

See 43 P.S. § 933.3(a).

Primary law

G.2 Construction Workplace Misclassification Act, 43 P.S. § 933.3

Act 72 requires, as one criterion of an independently established construction business, that the individual maintain liability insurance of at least $50,000 during the term of the contract.

The individual maintains liability insurance during the term of this contract of at least $50,000.

See 43 P.S. § 933.3(b)(6).

Is a tip credit allowed?

Yes — Pennsylvania allows a partial tip credit, setting a tipped cash wage of $2.83 an hour. The Minimum Wage regulation fixes that cash wage and conditions it: the employer must make up the difference whenever tips plus the cash wage fall short of the $7.25 minimum, and the credit applies only for a worker who receives more than $135 in tips a month . Because the credit is the gap between $7.25 and $2.83, an employer that takes the full credit claims $4.42 an hour. Pennsylvania's $135 monthly eligibility threshold is far higher than the $30-a-month federal figure, so fewer workers qualify as tipped here than under the FLSA.

The regulation sets both the cash floor and the make-whole guarantee, so a tipped worker never nets less than the full minimum wage across the pay period.

The minimum wage for tipped employees is $2.83 per hour under section 3(d) of the act (43 P.S. § 333.103(d)) with all of the following conditions: (1) An employer shall pay the difference when the employee’s tips plus the hourly wage for tipped employees does not meet the minimum wage contained in subsection (a) in this Commonwealth. (2) The tip credit applies only if an employee received over $135 in tips for a month.

Sources for this answer

Primary law

H.1 34 Pa. Code § 231.101aPDF

Pennsylvania allows a partial tip credit: the tipped cash wage is $2.83 an hour, the employer must make up any shortfall below $7.25, and the credit applies only for an employee who receives more than $135 in tips a month.

The minimum wage for tipped employees is $2.83 per hour under section 3(d) of the act (43 P.S. § 333.103(d)) with all of the following conditions: (1) An employer shall pay the difference when the employee’s tips plus the hourly wage for tipped employees does not meet the minimum wage contained in subsection (a) in this Commonwealth. (2) The tip credit applies only if an employee received over $135 in tips for a month.

See 34 Pa. Code § 231.101a(b).

How is it enforced?

Through both agency action and private lawsuits, on two tracks. For an underpaid minimum wage or unpaid overtime, the Minimum Wage Act gives the worker a private civil action to recover the full wage shortfall plus costs and reasonable attorney's fees, and it strips employers of the defense that the worker agreed to work for less . For unpaid regular wages, final pay, and fringe benefits, the Wage Payment and Collection Law supplies a parallel private action that any employee or group of employees may bring , with mandatory attorney's fees for a successful plaintiff . A WPCL claim must be filed within three years of the day the wages were due . The Department of Labor and Industry enforces both statutes administratively, and the federal FLSA remedy remains available alongside the state claims.

The Minimum Wage Act's civil-action provision is the enforcement engine for the wage floor itself — it guarantees fees and forecloses the waiver defense.

such worker may recover in a civil action the full amount of such minimum wage less any amount actually paid to the worker by the employer, together with costs and such reasonable attorney's fees as may be allowed by the court, and any agreement between the employer and the worker to work for less than such minimum wage shall be no defense to such action.

On the wage-payment track, the WPCL opens the courthouse to employees directly, individually or on behalf of others similarly situated.

Any employe or group of employes, labor organization or party to whom any type of wages is payable may institute actions provided under this act.

A prevailing WPCL plaintiff is entitled to attorney's fees as a matter of course, which — like the liquidated-damages penalty — makes modest claims worth litigating.

The court in any action brought under this section shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow costs for reasonable attorneys' fees of any nature to be paid by the defendant.

The claim is time-limited: the WPCL sets a three-year window running from the date the wages were due and payable.

No administrative proceedings or legal action shall be instituted under the provisions of this act for the collection of unpaid wages or liquidated damages more than three years after the day on which such wages were due and payable as provided in sections 3 and 5.

Sources for this answer

Primary law

I.1 Minimum Wage Act, 43 P.S. § 333.113

Section 13 of the Minimum Wage Act gives an underpaid worker a private civil action for the full wage shortfall plus costs and reasonable attorney's fees, and bars the employer from defending on the ground that the worker agreed to work for less.

such worker may recover in a civil action the full amount of such minimum wage less any amount actually paid to the worker by the employer, together with costs and such reasonable attorney's fees as may be allowed by the court, and any agreement between the employer and the worker to work for less than such minimum wage shall be no defense to such action.

See 43 P.S. § 333.113.

Primary law

I.2 Wage Payment and Collection Law, 43 P.S. § 260.9a

The WPCL authorizes a private right of action: any employee or group of employees, labor organization, or party to whom wages are payable may bring suit under the Act.

Any employe or group of employes, labor organization or party to whom any type of wages is payable may institute actions provided under this act.

See 43 P.S. § 260.9a(a).

Primary law

I.3 Wage Payment and Collection Law, 43 P.S. § 260.9a

The WPCL requires a court to award reasonable attorney's fees to a prevailing plaintiff in a wage-payment action, on top of the judgment.

The court in any action brought under this section shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow costs for reasonable attorneys' fees of any nature to be paid by the defendant.

See 43 P.S. § 260.9a(f).

Primary law

I.4 Wage Payment and Collection Law, 43 P.S. § 260.9a

The WPCL imposes a three-year limitations period: no action for unpaid wages or liquidated damages may be brought more than three years after the wages were due and payable.

No administrative proceedings or legal action shall be instituted under the provisions of this act for the collection of unpaid wages or liquidated damages more than three years after the day on which such wages were due and payable as provided in sections 3 and 5.

See 43 P.S. § 260.9a(g).

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