Pennsylvania HB 23: 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 and for minimum wages; providing for eligibility and coverage; further providing for exemptions, for duty of employer, for enforcement and rules and regulations and for civil actions; and repealing provisions relating to preemption.

Bill Text

PRINTER'S NO. 2444
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 23
Session of
2025
INTRODUCED BY RABB, HILL-EVANS, WEBSTER, DOUGHERTY AND GREEN,
OCTOBER 9, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, OCTOBER 10, 2025
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; providing for minimum
rates for learners and apprentices; creating a Minimum Wage
Advisory Board and defining its powers and duties; conferring
powers and imposing duties upon the Department of Labor and
Industry; imposing duties on employers; and providing
penalties," further providing for definitions and for minimum
wages; providing for eligibility and coverage; further
providing for exemptions, for duty of employer, for
enforcement and rules and regulations and for civil actions;
and repealing provisions relating to preemption.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3(d), (f), (h) and (i) of the act of
January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act
of 1968, are amended and the section is amended by adding
subsections to read:
Section 3. Definitions.--As used in this act:
* * *
(d) "Wages" mean compensation due to any employe by reason
of his or her employment, payable in legal tender of the United
States or checks on banks convertible into cash on demand at
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

full face value, subject to such deductions, charges or
allowances as may be permitted by regulations of the secretary
under section 9.
"Wage" paid to any employe includes the reasonable cost, as
determined by the secretary, to the employer for furnishing such
employe with board, lodging, or other facilities, if such board,
lodging, or other facilities are customarily furnished by such
employer to his or her employes: Provided, That the cost of
board, lodging, or other facilities shall not be included as a
part of the wage paid to any employe to the extent it is
excluded therefrom under the terms of a bona fide collective-
bargaining agreement applicable to the particular employe:
Provided, further, That the secretary is authorized to determine
the fair value of such board, lodging, or other facilities for
defined classes of employes and in defined areas, based on
average cost to the employer or to groups of employers similarly
situated, or average value to groups of employes, or other
appropriate measures of fair value. Such evaluations, where
applicable and pertinent, shall be used in lieu of actual
measure of cost in determining the wage paid to any employe.
[In determining the hourly wage an employer is required to
pay a tipped employe, the amount paid such employe by his or her
employer shall be an amount equal to: (i) the cash wage paid the
employe which for the purposes of the determination shall be not
less than the cash wage required to be paid the employe on the
date immediately prior to the effective date of this
subparagraph; and (ii) an additional amount on account of the
tips received by the employe which is equal to the difference
between the wage specified in subparagraph (i) and the wage in
effect under section 4 of this act. The additional amount on
20250HB0023PN2444 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

account of tips may not exceed the value of tips actually
received by the employe. The previous sentence shall not apply
with respect to any tipped employe unless:
(1) Such employe has been informed by the employer of the
provisions of this subsection;
(2) All tips received by such employe have been retained by
the employe and shall not be surrendered to the employer to be
used as wages to satisfy the requirement to pay the current
hourly minimum rate in effect; where the gratuity is added to
the charge made by the establishment, either by the management,
or by the customer, the gratuity shall become the property of
the employe; except that this subsection shall not be construed
to prohibit the pooling of tips among employes who customarily
and regularly receive tips.] In determining compliance with
section 4, gratuities shall be in addition to wages and may not
be credited against the wage required under section 4. An
employer may not, directly or indirectly, take, keep or divert
any part of an employe's gratuities. Where a gratuity is added
to a charge by the establishment or the customer, the gratuity
shall be the sole property of the employe who performed the
service. A tip pool may be permitted only among employes who
customarily receive gratuities and may not include an employer,
manager or supervisor. Any gratuities paid by credit card shall
be remitted in full to the employe, without deduction for
processing or other fees, no later than the next regular payday.
* * *
[(f) "Employe" includes to suffer or to permit to work.]
* * *
(h) "Employe" inclu