Pennsylvania — Wage & Hour

Pennsylvania's minimum wage is $7.25 per hour. Under the Pennsylvania Minimum Wage Act, the state rate matches the federal minimum wage whenever the federal rate exceeds Pennsylvania's statutory minimum. Because the current federal minimum wage is $7.25 per hour, Pennsylvania employers must pay at least that amount to covered employees.

Source: Pennsylvania Department of Labor & Industry — Wage FAQs

Under the Pennsylvania Minimum Wage Act, non-exempt employees must receive overtime pay at 1.5 times their regular rate for all hours worked in excess of 40 in a workweek. The overtime threshold is 40 hours per workweek; Pennsylvania does not require overtime for hours worked over eight in a single day. Overtime is calculated on a workweek basis, and compensatory time off in another workweek cannot offset overtime hours worked.

Source: 34 Pa. Code § 231.41 and Pennsylvania Department of Labor & Industry — Overtime and Tipped Worker Rules

Pennsylvania exempts bona fide executive, administrative, and professional employees from both minimum wage and overtime requirements under 43 P.S. § 333.105(a)(5). The exemptions are defined in regulations at 34 Pa. Code §§ 231.81–231.85. These regulations have undergone significant changes in recent years:

• October 2020: Pennsylvania adopted new regulations establishing a phased salary threshold increase and modernized duties tests
• July 2021: The legislature abrogated these regulations entirely as part of a budget deal
• August 2022: Pennsylvania re-adopted the exemption regulations with updated salary thresholds and duties tests, effective August 5, 2022

The current regulations (effective August 5, 2022) align more closely with the federal Fair Labor Standards Act (FLSA) white-collar exemptions under 29 C.F.R. Part 541 than Pennsylvania's prior rules, but retain important state-specific differences.

Salary threshold

To qualify for any of the three white-collar exemptions, an employee must be compensated on a salary or fee basis at a minimum weekly rate. The Pennsylvania regulations established a three-phase salary threshold that stepped up over two years:

• $684 per week ($35,568 annually) — effective October 3, 2020
• $780 per week ($40,560 annually) — effective October 3, 2021
• $875 per week ($45,500 annually) — effective October 3, 2022

The regulations also provide for automatic triennial updates starting October 3, 2023, based on the weighted average 10th percentile wages for Pennsylvania workers in exempt executive, administrative, or professional classifications. Under 34 Pa. Code § 231.82(4)(iv), the Department of Labor & Industry is required to publish the adjusted weekly salary rate on its website and in the Pennsylvania Bulletin at least 30 days before each three-year effective date.

Current threshold as of June 2026

Unable to confirm as of 2026-06-01.

The regulation text indicates that automatic updates were scheduled to occur on October 3, 2023, and every three years thereafter (October 3, 2026, October 3, 2029, etc.). However, no published Pennsylvania Bulletin notice or Department of Labor & Industry announcement confirming an updated threshold for October 2023 or October 2025 could be located. Employers should verify the current threshold directly with the Pennsylvania Department of Labor & Industry or consult the most recent Pennsylvania Bulletin publications.

Salary components

The weekly salary must be exclusive of board, lodging, or other facilities. Up to 10% of the required salary amount may be satisfied by nondiscretionary bonuses, incentives, and commissions paid annually or more frequently (34 Pa. Code § 231.82(5)). If by the end of the 52-week period the employee has not received enough supplemental payments to meet the threshold, the employer may make one final "catch-up" payment no later than the next pay period after year-end.

Duties tests

In addition to the salary threshold, the employee's primary duties must meet one of three categories:

• Executive (34 Pa. Code § 231.82) — Primary duty is management of the enterprise or a customarily recognized department or subdivision; customarily and regularly directs the work of at least two or more other full-time employees (or their equivalent); and has the authority to hire or fire other employees, or whose suggestions and recommendations as to hiring, firing, advancement, promotion, or other change of status are given particular weight.

• Administrative (34 Pa. Code § 231.83) — Primary duty is the performance of office or nonmanual work directly related to the management or general business operations of the employer or the employer's customers; and the primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

• Professional (34 Pa. Code § 231.84) — Primary duty is the performance of work requiring either (i) knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized instruction and study, or (ii) invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor.

The 2022 regulations eliminated the outdated "short test" and "long test" structure and removed the 20% restriction on time spent on nonexempt work, bringing the duties tests into closer alignment with federal FLSA standards.

Key difference from federal law: No computer professional exemption

Unlike the FLSA, Pennsylvania does not recognize a computer professional exemption. Employees working as computer systems analysts, programmers, software engineers, or similar computer occupations are not categorically exempt under Pennsylvania law, even if they would qualify under the federal computer professional exemption in 29 C.F.R. § 541.400. To be exempt in Pennsylvania, a computer professional must meet the requirements of the executive, administrative, or professional exemption using the same duties and salary tests that apply to all other employees.

Outside sales exemption

Pennsylvania also exempts outside salespeople (34 Pa. Code § 231.85), defined as employees who are customarily and regularly engaged more than 80% of work time away from the employer's place of business making sales or obtaining orders or contracts, and who spend no more than 20% of hours worked in any week on work not directly related to their own outside sales.

Other statutory exemptions

Section 333.105 of the Pennsylvania Minimum Wage Act (43 P.S. § 333.105) contains additional exemptions beyond the white-collar categories, including exemptions for certain seasonal amusement or recreational establishments (subsection (a)(7)), agricultural workers (subsection (a)(1)), newspaper delivery workers (subsection (a)(2)), taxicab drivers (subsection (a)(8)), and salespersons, partspersons, or mechanics primarily engaged in selling or servicing automobiles, trucks, or farm implements (subsection (a)(6)).

Interaction with federal law

When both Pennsylvania and federal overtime law apply to the same employee, the rule more favorable to the employee controls. As of October 2022, Pennsylvania's $875 per week salary threshold was higher than the federal threshold of $684 per week (set in 2020 and unchanged as of May 2026), requiring Pennsylvania employers to use the higher state threshold when classifying employees — subject to any automatic triennial adjustments that may have occurred under state law.

Source: 43 P.S. § 333.105; 34 Pa. Code §§ 231.81–231.85; Pennsylvania DLI — Overtime and Tipped Worker Rules

Pennsylvania permits employers to pay tipped employees a cash wage of $2.83 per hour, provided the employee's tips combined with the cash wage equal at least the full minimum wage of $7.25 per hour. If the employee's tips plus cash wage do not reach $7.25 per hour in any pay period, the employer must pay the difference. These rules are established in 34 Pa. Code § 231.101a(b), adopted in final-form rulemaking effective August 5, 2022.

Monthly tip threshold — $135 per month

To qualify as a tipped employee eligible for the reduced cash wage, the employee must receive more than $135 per month in tips. 34 Pa. Code § 231.1(b) defines "tipped employee" as one "engaged in an operation in which the employee customarily and regularly receives more than $135 a month in tips." This threshold increased from $30 per month when the regulation was amended effective August 5, 2022. The tip credit applies "only if an employee received over $135 in tips for a month" (34 Pa. Code § 231.101a(b)(2)). An employee who does not meet this threshold must be paid the full minimum wage of $7.25 per hour with no tip credit.

The 80/20 rule — tip-generating vs. non-tip-generating duties

Pennsylvania adopted the federal 80/20 rule in its August 2022 regulations at 34 Pa. Code § 231.111 ("Tip credit for non-tipped duties"), which incorporates by reference the U.S. Department of Labor's standards at 29 C.F.R. § 531.56. Under this rule, an employer may take a tip credit only if the employee spends at least 80% of the workweek performing duties that directly generate tips.

The employee may spend up to 20% of the workweek on duties that do not directly generate tips, but only if:

1. Those duties are directly related to and in support of the tip-generating duties, and
2. The non-tip-generating work does not exceed 30 continuous minutes.

When a tipped employee performs directly supporting work for more than 30 consecutive minutes, the employer may not take a tip credit for that time and must pay the full minimum wage for those hours. This "30-minute rule" is part of the federal standard incorporated by Pennsylvania at § 231.111.

Examples of tip-generating and supporting duties

The Pennsylvania Department of Labor & Industry provides the following examples on its official guidance page:

• Directly tip-generating duties include taking orders, serving food and drinks, preparing alcoholic beverages, bussing tables during meal service, making recommendations, and processing payments.

• Directly supporting duties (related to tip-generating work but not themselves tip-producing) include preparing tabletop condiments, wrapping silverware, and refilling napkin holders.

If a server spends more than 20% of the workweek performing supporting duties—or if any single block of supporting work exceeds 30 minutes—the employer must pay the full minimum wage (not the tipped minimum wage) for the time over the limit.

Employer obligations when taking a tip credit

An employer taking a tip credit must:

• Inform the employee that the employer intends to take a tip credit (Pennsylvania law requires this notice, though the regulations do not specify the form; federal law under 29 U.S.C. § 203(m) likewise requires notice);
• Ensure that tips plus cash wage equal at least $7.25 per hour for every hour worked (34 Pa. Code § 231.101a(b)(1));
• Pay the full minimum wage for any hours in which the employee does not qualify for the tip credit, including hours when non-tip-generating work exceeds the 20% threshold or the 30-minute continuous limit (34 Pa. Code § 231.111(b));
• Allow the employee to retain all tips, except as permitted by valid tip-pooling arrangements under 43 P.S. § 333.103(d) and 34 Pa. Code § 231.112; and
• Keep accurate records of tips reported by each tipped employee, including weekly or monthly tip amounts and the tip credit taken (34 Pa. Code § 231.34).

Calculating the tip credit

The maximum tip credit under Pennsylvania law is $4.42 per hour, calculated as the difference between the full minimum wage ($7.25) and the tipped minimum wage ($2.83). This matches the federal tip credit under the Fair Labor Standards Act (FLSA), which likewise permits a maximum credit of $4.42 per hour. When both Pennsylvania and federal law apply, the employer must comply with the law more favorable to the employee.

Effective date

The current tipped-employee regulations—including the $135 monthly threshold, the 80/20 rule, and the 30-minute continuous limit—became effective August 5, 2022 (90 days after final-form rulemaking was published at 52 Pa.B. 2701 on May 6, 2022).

Source: 34 Pa. Code § 231.101a; 34 Pa. Code § 231.1; 34 Pa. Code § 231.111; 34 Pa. Code § 231.34; 43 P.S. § 333.103; Pennsylvania Department of Labor & Industry — Overtime and Tipped Worker Rules

Pennsylvania requires employers to pay wages on regular paydays designated in advance, with specific timing rules for ongoing employment and separation scenarios under the Pennsylvania Wage Payment and Collection Law (43 P.S. §§ 260.1 et seq.).

Payment frequency during active employment

Employers must pay all wages (other than fringe benefits and wage supplements) on regular paydays designated in advance. The statute does not mandate a specific frequency (weekly, bi-weekly, semi-monthly, or monthly), but employers must establish and communicate the schedule upfront. Wages earned in any pay period must be paid within the number of days specified in a written employment contract or, if not specified, within the standard time lapse customary in the trade or within 15 days from the end of the pay period—whichever comes first (43 P.S. § 260.3(a)).

Overtime treatment

Overtime wages may be considered wages earned and payable in the next succeeding pay period, allowing employers one additional pay cycle to calculate and pay overtime amounts (43 P.S. § 260.3(a)).

Final wages upon termination or resignation

When an employer separates an employee from the payroll—whether by termination, layoff, or the employee's own resignation—all wages or compensation earned become due and payable not later than the next regular payday on which such wages would otherwise be due and payable if employment had continued (43 P.S. § 260.5(a)). Pennsylvania does not require immediate payment or payment on the employee's last day; instead, the employer may wait until the next scheduled payday in the ordinary payroll cycle.

If the separated employee requests it, the employer must send the final payment by certified mail (43 P.S. § 260.5(a)).

Industrial disputes

In the event of a work suspension caused by an industrial dispute (such as a strike or lockout), wages earned and unpaid at the time of suspension become due not later than the next regular payday—unless the employer is unable to prepare the payroll due to the industrial dispute or other reasons beyond the employer's control. In that case, the employer is not deemed in violation of the payment-timing requirement (43 P.S. § 260.5(b)).

Notice requirement at hire

At the time of hiring, every employer must notify employees of:

• The time and place of payment,
• The rate of pay, and
• The amount of any fringe benefits or wage supplements to be paid.

This notice may be provided individually or by posting the information conspicuously at the employer's place of business (43 P.S. § 260.4).

Wage disputes

If a dispute arises over the amount owed, the employer must give the employee written notice of the amount of wages the employer concedes to be due and must pay that undisputed amount without condition. The employee's acceptance of the partial payment does not constitute a release of any balance claimed (43 P.S. § 260.6).

Cross-reference — federal floor

The Fair Labor Standards Act (FLSA) does not impose federal payment frequency or final-paycheck timing rules; those are governed entirely by state law. Pennsylvania employers must therefore comply with the WPCL timing requirements outlined above.

Source: 43 P.S. § 260.3; 43 P.S. § 260.4; 43 P.S. § 260.5; 43 P.S. § 260.6

Pennsylvania does not require employers to provide meal breaks or rest breaks to adult employees (age 18 and older). This stands in contrast to states such as California and New York, which mandate meal and rest periods for most employees. Under Pennsylvania law, the decision to offer breaks to adult workers is entirely within the employer's discretion, subject to federal payment rules when breaks are voluntarily provided.

Minors — mandatory 30-minute break after five hours

Pennsylvania law does require employers to provide a 30-minute break to employees under age 18 who work more than five consecutive hours. Under 43 P.S. § 40.3(a) (the Pennsylvania Child Labor Act), "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."

The break must be uninterrupted, meaning the minor must be completely relieved of all work duties during the 30-minute period. If an employer requires a minor to perform any job-related task during the break—such as answering phones, monitoring equipment, or covering a workstation—the break does not satisfy the statutory requirement.

This requirement applies to all minors ages 14 through 17, regardless of whether school is in session. The break is not required to be paid, provided the minor is fully relieved of duties. Employers who fail to provide the required break may face penalties under Pennsylvania's child labor enforcement framework, which is administered by the Department of Labor & Industry's Bureau of Labor Law Compliance.

Seasonal farmworkers — 30-minute break after five hours

Pennsylvania's Seasonal Farm Labor Act imposes a parallel break requirement for seasonal farm labor. Under 43 P.S. § 1301.301 (titled "Hours of labor"), seasonal farm workers must be provided "a meal or rest period of not less than thirty (30) minutes for every five (5) hours of continuous work." This requirement applies to both adult and minor employees working in covered seasonal farm operations and is enforced by the Department of Labor & Industry. The break must relieve the employee of all work duties and need not be paid.

The Seasonal Farm Labor Act (43 P.S. §§ 1301.101 et seq.) was enacted in 1978 to improve conditions for seasonal farm workers by establishing standards for wages, hours, housing, and safety. The break mandate under section 1301.301 is independent of the child labor rule and covers a specific occupational category rather than applying to all Pennsylvania employers.

Federal rules when breaks are voluntarily provided

Although Pennsylvania does not mandate breaks for adult employees in most occupations, federal law under the Fair Labor Standards Act (FLSA) governs how employers must treat breaks if they choose to offer them. Under 29 C.F.R. § 785.18, promulgated by the U.S. Department of Labor:

• Short breaks (5 to 20 minutes) are considered "hours worked" and must be compensated. This includes coffee breaks, restroom breaks, and similar short rest periods. The regulatory rationale is that brief rest periods "are customarily paid for as working time" and "promote the efficiency of the employee" and thus primarily benefit the employer. These breaks count toward the employee's total hours worked for overtime-calculation purposes under the FLSA.

• Meal breaks (typically 30 minutes or longer) may be unpaid under 29 C.F.R. § 785.19 only if the employee is completely relieved of all work duties during the break. If the employer requires or permits the employee to remain "on call," answer phones, monitor equipment, or perform any work-related task during the meal period, the break is compensable and must be paid as working time. A bona fide meal period ordinarily lasts at least 30 minutes, though the regulation focuses on whether the employee is relieved of duties rather than a strict time threshold.

Employers who offer voluntary break policies must apply them consistently and in compliance with these federal standards. A meal break that an employer designates as "unpaid" will be recharacterized as paid working time if the employee is not fully relieved of duties—potentially triggering unpaid-wage claims and overtime liability.

No day-of-rest or other break mandates for adults

Pennsylvania law does not require employers to provide (for employees age 18 and older):

• A day of rest after a certain number of consecutive workdays (adult employees may legally work seven days per week without interruption);
• 15-minute rest breaks at any interval;
• Meal breaks based on shift length;
• Heat breaks, smoking breaks, or breaks for any other specific purpose.

The Pennsylvania Department of Labor & Industry confirms in its official Wage FAQs: "Employers are not required to give breaks for employees 18 and over." There is no Pennsylvania statute, regulation, or DLI guidance imposing any general break requirement for adult employees outside the seasonal farmworker category.

Interaction with employer policies and collective bargaining agreements

Many Pennsylvania employers voluntarily provide meal and rest breaks as a matter of policy to improve productivity, morale, and retention. Once an employer establishes a break policy—whether in an employee handbook, a written policy, or through consistent practice—the employer must apply it uniformly and in accordance with the policy terms and federal FLSA payment rules. Additionally, unionized workplaces may have meal and rest break requirements negotiated under a collective bargaining agreement that exceed both state and federal minimums; those contractual terms are enforceable as a matter of labor law.

Cross-reference — federal floor

The federal Fair Labor Standards Act does not mandate meal or rest breaks for any category of employee (except for nursing mothers, who are entitled to reasonable unpaid break time to express breast milk for one year following childbirth under 29 U.S.C. § 207(r), as amended by the FLSA in 2010 and strengthened by the Providing Urgent Maternal Protections for Nursing Mothers Act in 2022). Pennsylvania employers are therefore governed entirely by the state-law requirements described above: mandatory breaks for minors under 18 and for seasonal farmworkers, no mandate for adult employees in other occupations, and federal FLSA payment rules when breaks are voluntarily offered.

Source: 43 P.S. § 40.3; 43 P.S. § 1301.301; Pennsylvania Department of Labor & Industry — Wage FAQs; Pennsylvania Department of Labor & Industry — Child Labor Act