This bill amends the Minimum Wage Act of 1968 to enhance worker protections and update wage standards in Pennsylvania. Key changes include the definition of "wages" to encompass not only monetary compensation but also the reasonable cost of board, lodging, or other facilities provided by employers. It establishes that gratuities are to be considered additional to wages and cannot be credited against the minimum wage. The bill also abolishes the sub-minimum cash wage for tipped employees and mandates that employers cannot take or divert any part of an employee's gratuities. Furthermore, it introduces new definitions for various worker classifications, including domestic workers, agricultural workers, and marketplace contractors, ensuring that all classes of workers are covered under the minimum wage provisions.

Additionally, the bill sets a minimum wage of $15 per hour starting July 1, 2026, with annual increases thereafter until it aligns with a living wage based on the average cost of living. It also includes provisions for employers to provide itemized statements of hours worked and wages paid to employees, including gratuities. The bill repeals previous preemption provisions, allowing local regulations to remain in effect if adopted before January 1, 2006. Overall, the legislation aims to strengthen wage protections and ensure fair compensation for all workers in Pennsylvania.

Statutes/Laws affected:
Printer's No. 2444 (Oct 10, 2025): P.L.11, No.5