SB 19 — 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, for minimum wages and for exemptions; providing for gratuities; further providing for enforcement and rules and regulations, for penalties and for civil actions; repealing provisions relating to preemption; and providing for local option and for taxpayer savings and reinvestment.

Bill Text

• Printer's No. PN0685 View text Current pdf

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The bill amends Pennsylvania's Minimum Wage Act to establish a minimum wage of $15 per hour starting January 1, 2026, with annual cost-of-living adjustments, and includes provisions regarding gratuities and enhanced penalties for employers violating wage laws.

• Section 4(a)

  [the cash wage required to be paid the employe on the date immediately prior to the effective date of this subparagraph] → seventy percent of the wage in effect under section 4

  This change alters the calculation for tipped employees' wages, setting it at 70% of the standard wage instead of the previous fixed cash wage.

• Section 4(a)

  Fifteen dollars ($15) an hour beginning January 1, 2026.

  This establishes a new minimum wage of $15 per hour starting in 2026.

• Section 4(a)

  Each succeeding January 1 thereafter, the minimum wage shall be increased by an annual cost-of-living adjustment calculated by the secretary using the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and Maryland area.

  This mandates annual adjustments to the minimum wage based on inflation.

• Section 5(c)(2)

  Such employer shall pay the full amount of the minimum wage under section 4(a)(8) beginning July 1, 2008 through December 31, 2025. → Such employer shall pay the full amount of the minimum wage under section 4(a)(9) beginning January 1, 2026.

  This change shifts the legal requirement for paying minimum wage from one section to another, aligning it with the new minimum wage rate set for 2026.

• Section 5.2

  (a) A gratuity shall be the property of the employe who received the voluntary monetary contribution from a guest, patron or customer for services rendered. An employer shall not take a gratuity or a part of a gratuity received by an employe from a guest, customer or patron.

  This clarifies that gratuities belong to the employee and cannot be taken by the employer.

• Section 5.2(b)

  An employer that accepts payment of a gratuity by credit card shall pay the employe the full amount of the gratuity that the guest, customer or patron indicated on the credit card slip without a deduction for any credit card processing fees or costs that may be charged to the employer by the credit card company.

  This ensures that employees receive the full amount of gratuities paid via credit card without deductions for processing fees.

• Section 12(a)

  five hundred dollars ($500) → one thousand five hundred dollars ($1,500)

  This increases the minimum fine for employers who discriminate against employees in any manner due to wage-related grievances.

• Section 12(a)

  one thousand dollars ($1,000) → three thousand dollars ($3,000)

  This raises the maximum fine for discriminatory practices against employees under the minimum wage act.

• Section 12(b)

  seventy-five dollars ($75) → two hundred twenty-five dollars ($225)

  This increases the minimum penalty for employers who underpay employees below the minimum wage.

• Section 12(b)

  three hundred dollars ($300) → nine hundred dollars ($900)

  This raises the maximum penalty for underpayment of wages.

• Section 13(a)

  At the request of any employe paid less than the minimum wage to which such employe was entitled under this act and regulations issued thereunder, the secretary may take an assignment of such wage claim, in trust for the assigning worker and may bring any legal action necessary to collect such claim,

  This removes the provision allowing the Secretary to take wage claims on behalf of employees for collection, changing the claims process.

Action History

1. April 28, 2025

   Referred to Labor & Industry

Sponsors

• Christine M. Tartaglione · Primary
• Sharif Street · Cosponsor
• Timothy P. Kearney · Cosponsor
• Vincent J. Hughes · Cosponsor
• John I. Kane · Cosponsor
• Jay Costa · Cosponsor
• Carolyn T. Comitta · Cosponsor
• Nikil Saval · Cosponsor
• Amanda M. Cappelletti · Cosponsor
• Art Haywood · Cosponsor
• James Andrew Malone · Cosponsor
• Lindsey M. Williams · Cosponsor
• Katie J. Muth · Cosponsor
• Steven J. Santarsiero · Cosponsor

Subjects