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 tipped employees' wages, establishing that the cash wage must be at least sixty percent of the minimum wage required under section 4 of the act, and outlines conditions under which tips can be retained by employees.

Additionally, the bill introduces new minimum wage rates based on the classification of counties. For 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 beginning January 1, 2026, increasing to $15 by January 1, 2028, also with annual adjustments. For lower-class counties, the minimum wage will start at $10 per hour in 2026, rising to $12 by 2028, with similar cost-of-living adjustments. The bill also removes previous provisions regarding training wages for employees under 20 years old and updates the exemption criteria for small employers. The act is set to take effect 60 days after its passage.