Pennsylvania Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, establishes the federal minimum wage at $7.25 per hour, effective since July 24, 2009. This rate applies to all covered employees of employers engaged in interstate commerce with gross annual sales of at least $500,000, though most employers are covered because nearly all business involves interstate commerce.

The FLSA covers most private-sector employees, with narrow exceptions for certain agricultural workers, domestic service employees in private homes, and certain disabled workers. The Department of Labor's Wage and Hour Division enforces the FLSA. Employers must pay covered employees at least the minimum wage for all hours worked, including travel time, waiting time, and on-call time in certain situations.

Federal law permits a tip credit of up to $5.12 per hour, meaning tipped employees can be paid as little as $2.13 per hour in wages if tips bring total compensation to $7.25. However, employers remain liable if tips do not reach this threshold. Violations result in back wages owed to employees, plus liquidated damages equal to the amount of unpaid wages, reasonable attorney's fees, and possible civil penalties. There is no federal statute of limitations cap on wage recovery actions.

Pennsylvania has adopted the federal minimum wage of $7.25 per hour under its Minimum Wage Law of 1968, 43 P.S. § 333.101 et seq., and has not enacted a state minimum wage above the federal rate. This means Pennsylvania employers must comply with the $7.25 federal floor; the state does not provide stronger protections than federal law on the minimum wage amount itself.

Under Pennsylvania law, 43 P.S. § 333.104, tipped employees must receive at least $2.83 per hour in base wages paid by the employer, with tips credited toward the $7.25 minimum wage total. This matches the federal tip credit calculation ($7.25 minus the $5.42 difference). Employers must inform tipped employees of the tip credit in advance and must make up any shortfall if tips do not reach the $7.25 threshold in any pay period.

Pennsylvania's Minimum Wage Law applies to all employers subject to the FLSA, plus certain state-only employers not covered federally. The law covers employees in Pennsylvania who work for covered employers, regardless of whether the work is performed in-state. Pennsylvania does not recognize broader exemptions than federal law; professional, administrative, and executive employees exempt under the FLSA are equally exempt under state law.

The Pennsylvania Department of Labor and Industry, Bureau of Labor Law Compliance, enforces the state minimum wage law. Remedies under Pennsylvania law include unpaid wages, interest calculated from the date wages were due, and penalties of up to 10% of the unpaid wages if the employer willfully violated the law. Employees may also pursue claims through the Department's administrative process or file a civil action in court. Unlike some states, Pennsylvania does not cap the period over which back wages can be recovered, and the statute of limitations for wage claims is generally six years.

Pennsylvania law recognizes federal FLSA exemptions to minimum wage requirements. Executive, administrative, and professional employees are exempt if they meet federal salary and duties tests. Bona fide outside salespersons, certain agricultural employees, domestic service workers in private homes, and some casual babysitters are exempt under federal law and therefore exempt in Pennsylvania.

Students enrolled in accredited schools may be paid 75% of the minimum wage (approximately $5.44 per hour) if employed by their school in part-time work, under federal regulations. However, this does not reduce the employer's obligation to pay $7.25 to non-student employees performing the same work.

Employers operating certain sheltered workshops for workers with disabilities may obtain a special certificate from the Department of Labor allowing sub-minimum wages, though this is rare and strictly regulated. Workers with disabilities must be individually certified by the Department, and the wage rate must correspond to the worker's productivity level.

Independent contractors are not covered by minimum wage laws; the worker must be classified as a true independent contractor under Pennsylvania's ABC test (control, business integration, and independent trade). Misclassification as independent contractor to avoid minimum wage obligations exposes the employer to liability.

At-will employment in Pennsylvania does not override minimum wage requirements; an employer cannot reduce wages below $7.25 for at-will employees. Family members employed by a family business may have limited protections under certain interpretations, but the employer must still pay minimum wage unless the worker is a true co-owner. Commission-based and piece-rate workers must still earn at least minimum wage when averaged across all hours worked in a pay period.

Step 1 — Document the violation. Keep detailed records of all hours worked, wages paid, and pay stubs for at least the past six years (the statute of limitations for wage claims in Pennsylvania). Document the hours in writing or photograph your timeclock records, texts from your manager, or emails confirming your schedule. Record the hourly rate you were actually paid and calculate any shortfall from $7.25 per hour. If you were a tipped employee, document your tip income and the base wage paid by your employer. Maintain copies of your employment agreement, employee handbook, and any written communications about wage terms.

Step 2 — Pursue an internal complaint if feasible. Request a meeting with your manager, HR department, or payroll to discuss the wage shortfall in writing (email preferred for documentation). Explain which pay periods were affected and the dollar amount owed. Keep a copy of your complaint and any response. This step is optional but helps establish that you attempted to resolve the issue and may support a damages claim if the employer fails to correct it. Document any retaliation or negative employment action following your complaint, as retaliation is illegal under Pennsylvania law.

Step 3 — File a formal complaint with the Pennsylvania Department of Labor and Industry. Submit a complaint to the Bureau of Labor Law Compliance, which enforces the Minimum Wage Law. Visit www.dli.pa.gov or call 717-787-5279 for the Wage and Hour Division. You may also file online through the Department's complaint portal or mail a written complaint to the Bureau of Labor Law Compliance, 1171 South Cameron Street, Harrisburg, PA 17104. Include your name, contact information, employer name and address, dates of the wage violation, hours worked, wages paid, and the amount owed. The Department will conduct an investigation at no cost to you. There is no strict filing deadline for administrative complaints, but filing promptly (within one year) strengthens your case. The investigation typically takes 2-4 weeks; the Department will contact your employer and you for statements and records.

Step 4 — Expect the Department's investigation process. The Department will request payroll records, timesheets, and wage statements from your employer and will interview you and your employer separately. If the Department confirms a violation, it will notify your employer and demand payment of all unpaid wages plus interest and any applicable penalties (up to 10% of unpaid wages for willful violations). If the employer does not comply, the Department can refer the case for civil enforcement or you may pursue a private civil action. The investigation is free; the Department does not charge you a fee.

Step 5 — Consult an employment attorney if the Department's action is insufficient or if you prefer a private lawsuit. Contact an employment law attorney licensed in Pennsylvania who specializes in wage and hour disputes. An attorney can file a civil action in the appropriate Pennsylvania court (Court of Common Pleas) for unpaid wages, interest, and penalties under 43 P.S. § 333.109. Many employment attorneys work on contingency (no upfront fee), taking a percentage of the recovery. An attorney can also represent you in settlement negotiations with your employer. If your case has merit, the employer may be ordered to pay your attorney's fees and court costs.