This bill amends the Minimum Wage Act of 1968 to update definitions, minimum wage rates, and exemptions for employees in Pennsylvania. Key changes include the definition of "wages," which now encompasses the reasonable cost of board, lodging, or other facilities provided by employers, with specific provisions for collective bargaining agreements. The bill also modifies the calculation of wages for tipped employees, establishing a new minimum cash wage of sixty percent of the required wage under section 4, and clarifies the conditions under which tips can be pooled among employees.

Additionally, the bill introduces new minimum wage rates based on the classification of counties. For employees in first-class counties, the minimum wage will be set at $15 per hour starting January 1, 2026, with annual cost-of-living adjustments thereafter. Second-class counties will see a minimum wage of $11 per hour in 2026, increasing to $15 by 2028, while fourth to eighth-class counties will start at $10 per hour in 2026, also with annual adjustments. The bill also removes previous provisions regarding lower minimum wages for small employers and establishes a training wage for employees under 20 years old during their first 60 days of employment. The act will take effect 60 days after passage.