Pennsylvania Amends Wage Regulations for Tipped Employees

Pennsylvania amended its minimum wage regulations to update the tipped employee exemption and employer requirements for tip pooling. An additional amendment to the state’s overtime laws also clarifies that the regular wage rate for nonexempt salaried employees is the amount of remuneration divided by 40 hours. The amendments will become effective on Aug. 5, 2022.

Pennsylvania Minimum Wage Rate 

Pennsylvania's minimum wage rate is $7.25 per hour. 

• An employee’s wages include any means of compensation due to him or her by reason of his or her employment. This includes salaries, tips and the reasonable costs of board, lodging and other facilities, when these are customarily provided to employees.

• State law allows employers to pay tipped employees a cash wage of $2.83 per hour, as long as the employee’s tips, when added to the cash wage, are at least equal to the state’s minimum wage rate. Currently, tipped employees in Pennsylvania must earn at least $30 per month in tips to qualify for this exemption. Starting Aug. 5, 2022, the monthly tip threshold for tipped employees will be $135.

More Information

Please contact the Pennsylvania Department of Labor and Industry for more information on wage and hour issues.