SB 79 — An Act amending the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, further providing for definitions; providing for Federal compliance; and further providing for minimum wages and for exemptions.

PRIOR PRINTER'S NO.

54 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

138979 THE2019 GENERALINTRODUCED ASSEMBLYBY OFTARTAGLIONE, PENNSYLVANIAFONTANA, SENATESCHWANK, BILLSTREET, SessionHUGHES, ofCOSTA, No.BREWSTER AND BROWNE, JANUARY 23, 2019 REFERRED TO LABOR AND INDUSTRY, JANUARY 23, 2019 AN ACT Ame"An act establishing a fixed minimum wage and overtime rates for employes, with certain exceptions;

79 2019 INTRODUCED BY TARTAGLIONE, FONTANA, SCHWANK, STREET, HUGHES, L.

WILLIAMS, JANUARY 23, 2019OOD, YUDICHAK, LEACH, IOVINO AND SENATOR BARTOLOTTA, LABOR AND INDUSTRY, AS AMENDED, NOVEMBER 18, 2019 AN ACT Amending the act of January 17, 1968 (P.L.11, No.5), entitled "An act establishing a fixed minimum wage and overtime rates for employes, with certain exceptions;

and providing FEDERALpenalties," COMPLIANCE;further providing for definitions.

AND FURTHER PROVIDING FOR MINIMUM WAGESOR <-- AND FOR EXEMPTIONS.

The additional amount on account of tips may not exceed the value of tips actually 20190SB0079PN1389 - 2 - received by the employe.

20190SB0079PN0054 - 2 - (1) Such employe has been informed by the employer of the provisions of this subsection;

<--20190SB0079PN0054 SECTION- 2.3 -

THE ACT IS AMENDED BY ADDING A SECTION TO READ:

<-- SECTION 3.1.

FEDERAL COMPLIANCE.--THE MINIMUM WAGE AND OVERTIME REQUIREMENTS UNDER THIS ACT SHALL BE APPLIED IN ACCORDANCE WITH THE MINIMUM WAGE AND OVERTIME PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938 (29 U.S.C.

§§ 201-219) AND THE REGULATIONS PROMULGATED UNDER THE FAIR LABOR STANDARDS ACT OF 1938, EXCEPT WHEN A HIGHER STANDARD IS SPECIFIED UNDER THIS ACT 20190SB0079PN1389 - 3 - OR REGULATIONS PROMULGATED UNDER THIS ACT.

SECTION 2.1.

SECTION 4(A) OF THE ACT IS AMENDED BY ADDING PARAGRAPHS TO READ:

SECTION 4.

MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE PROVIDED UNDER THIS ACT:

(A) EVERY EMPLOYER SHALL PAY TO EACH OF HIS OR HER EMPLOYES WAGES FOR ALL HOURS WORKED AT A RATE OF NOT LESS THAN:

* * * (9) EIGHT DOLLARS ($8.00) AN HOUR BEGINNING JULY 1, 2020.

(10) EIGHT DOLLARS FIFTY CENTS ($8.50) AN HOUR BEGINNING JANUARY 1, 2021.

(11) NINE DOLLARS ($9.00) AN HOUR BEGINNING JULY 1, 2021.

(12) NINE DOLLARS AND FIFTY CENTS ($9.50) AN HOUR BEGINNING JANUARY 1, 2022.

* * * SECTION 3.

SECTION 5(A)(3), (4), (5) AND (11) OF THE ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 5.

EXEMPTIONS.--(A) EMPLOYMENT IN THE FOLLOWING CLASSIFICATIONS SHALL BE EXEMPT FROM BOTH THE MINIMUM WAGE AND OVERTIME PROVISIONS OF THIS ACT:

* * * [(3) DELIVERY OF NEWSPAPERS TO THE CONSUMER;

(4) IN CONNECTION WITH THE PUBLICATION OF ANY WEEKLY, SEMIWEEKLY, OR DAILY NEWSPAPER WITH A CIRCULATION OF LESS THAN FOUR THOUSAND, THE MAJOR PART OF WHICH CIRCULATION IS WITHIN THE COUNTY WHERE PUBLISHED OR COUNTIES CONTIGUOUS THERETO;] (5) IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYE EMPLOYED IN THE CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN 20190SB0079PN1389 - 4 - ELEMENTARY OR SECONDARY SCHOOLS) [OR IN THE CAPACITY OF OUTSIDE SALESMAN (AS SUCH TERMS ARE DEFINED AND DELIMITED FROM TIME TO TIME BY REGULATIONS OF THE SECRETARY, EXCEPT THAT AN EMPLOYE OF A RETAIL OR SERVICE ESTABLISHMENT SHALL NOT BE EXCLUDED FROM THE DEFINITION OF EMPLOYE EMPLOYED IN A BONA FIDE EXECUTIVE OR ADMINISTRATIVE CAPACITY BECAUSE OF THE NUMBER OF HOURS IN HIS OR HER WORKWEEK WHICH HE OR SHE DEVOTES TO ACTIVITIES NOT DIRECTLY OR CLOSELY RELATED TO THE PERFORMANCE OF EXECUTIVE ADMINISTRATIVE ACTIVITIES, IF LESS THAN FORTY PERCENT OF HIS OR HER HOURS WORKED IN THE WORKWEEK ARE DEVOTED TO SUCH ACTIVITIES);] OR IN THE CAPACITY OF OUTSIDE SALESMAN, A HIGHLY COMPENSATED EMPLOYE, COMPUTER SYSTEMS ANALYST, COMPUTER PROGRAMMER, SOFTWARE ENGINEER OR OTHER SIMILARLY SKILLED WORKER;

* * * [(11) IN EMPLOYMENT AS A SWITCHBOARD OPERATOR EMPLOYED BY AN INDEPENDENTLY OWNED PUBLIC TELEPHONE COMPANY WHICH HAS NOT MORE THAN SEVEN HUNDRED AND FIFTY STATIONS;] * * * (D) THE FOLLOWING SHALL APPLY TO SUBSECTION (A)(5):

(1) WHEN THE CLASSIFICATIONS UNDER SUBSECTION (A)(5) ARE REQUIRED TO BE COMPENSATED ON A SALARY OR FEE BASIS IN ACCORDANCE WITH THE FAIR LABOR STANDARDS ACT OF 1938 (29 U.S.C.

§§ 201-219) AND 29 CFR PT.

541 (RELATING TO DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, ADMINISTRATIVE, PROFESSIONAL, COMPUTER AND OUTSIDE SALES EMPLOYEES), AS AMENDED, EMPLOYERS MAY USE THE PAYMENT OF NONDISCRETIONARY BONUSES, INCENTIVES AND COMMISSIONS, PAID ANNUALLY OR MORE FREQUENTLY, TO DETERMINE UP TO TEN PERCENT OF THE SALARY OR FEE AMOUNT.

AN EMPLOYER MAY DESIGNATE ANY FIFTY-TWO-WEEK PERIOD IN DETERMINING ANNUAL PAYMENTS.

IF AN EMPLOYER FAILS TO DESIGNATE IN WRITING 20190SB0079PN1389 - 5 - THE ANNUAL PAYMENT TIME PERIOD IN ADVANCE, A CALENDAR YEAR WILL APPLY.

(2) EFFECTIVE JANUARY 1, 2023, THE SALARY OR FEE BASIS UNDER PARAGRAPH (1) MAY BE UPDATED AND DELIMITED FROM TIME TO TIME BY REGULATIONS OF THE SECRETARY.

(3) THE TERMS UNDER SUBSECTION (A)(5) SHALL BE DEFINED IN ACCORDANCE WITH THE FAIR LABOR STANDARDS ACT OF 1938 AND 29 CFR PT.

541, AS AMENDED, EXCEPT AS OTHERWISE PROVIDED UNDER THIS ACT OR UPDATED AND DELIMITED FROM TIME TO TIME BY REGULATIONS OF THE SECRETARY AFTER THE EFFECTIVE DATE OF THIS SECTION.

SECTION 4.

THIS ACT SHALL TAKE EFFECT IN 90 DAYS.