Pennsylvania’s Employment Laws: What Every Business Owner Should Know (2025 Update)

Why this matters in 2025

If you employ people in Pennsylvania, your compliance checklist spans federal, state, county, and city rules—some of which changed recently. This guide highlights the core issues business owners ask us about most often: minimum wage and overtime, employee classification, anti‑discrimination standards, background checks, paid sick leave, scheduling, postings, unemployment notices, and more. Where local ordinances (Philadelphia, Pittsburgh, Allegheny County) impose stricter rules, those stricter standards apply to covered work performed there.

Minimum wage in Pennsylvania

As of today, Pennsylvania follows the federal minimum wage of \$7.25/hour and a \$2.83 cash wage for tipped employees (with employer obligations to ensure tips make up at least the full minimum). The Pennsylvania Department of Labor & Industry (L&I) maintains official resources and mandatory postings for the Minimum Wage Act. [1](https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/pennsylvania-s-minimum-wage-act)[2](https://minimumwagelookup.com/minimum-wage/pennsylvania)

Policy watch: In June 2025, the Pennsylvania House passed a bill proposing county‑tiered increases (e.g., \$15 in 20 counties), but it is not law unless the Senate concurs and the Governor signs it. Employers should track this development closely. [3](https://www.spotlightpa.org/news/2025/06/minimum-wage-15-pennsylvania-house-senate-philadelphia/)

Overtime & salary thresholds (FLSA vs. Pennsylvania)

Overtime generally kicks in after 40 hours in a workweek at 1.5× the regular rate. Federally, a November 2024 federal court decision vacated the U.S. Department of Labor’s (DOL) 2024 overtime rule that would have raised the exempt salary thresholds in 2024–2025. DOL is currently applying the earlier 2019 levels—\$684/week for the “white‑collar” exemptions and \$107,432 for the highly compensated exemption—pending further litigation and agency action. Employers should verify thresholds before making classification decisions. [4](https://www.dol.gov/agencies/whd/overtime/salary-levels)

Pennsylvania’s courts sometimes interpret state law more favorably to workers than federal law. Example: the Pennsylvania Supreme Court rejected the federal “fluctuating workweek” half‑time method. In Pennsylvania, non‑exempt salaried employees must receive 1.5× their regular rate for hours over 40—no half‑time shortcut. [5](https://law.justia.com/cases/pennsylvania/supreme-court/2019/22-wap-2018.html)[6](https://www.bipc.com/pennsylvania-supreme-court-clarifies-overtime-pay-calculation-for-non-exempt-salaried-workers)

Another Pennsylvania Supreme Court decision held that time spent waiting for and undergoing mandatory security screenings counts as compensable “hours worked,” and there’s no “de minimis” exception under the state law. Revisit your end‑of‑shift procedures accordingly. [7](https://law.justia.com/cases/pennsylvania/supreme-court/2021/43-eap-2019.html)

Employee vs. independent contractor

Misclassification is a recurring enforcement priority. Federally, DOL’s March 2024 rule outlines a “totality of the circumstances” economic‑reality test across six non‑weighted factors (control, opportunity for profit/loss, investments, permanence, integrality, and skill/initiative). Even where enforcement posture is fluid, the safest course is to evaluate each engagement holistically and document your analysis. [8](https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking)

Construction employers: Pennsylvania’s Construction Industry Employee Verification Act (Act 75) has required E‑Verify usage since 2020. Covered construction industry employers must verify new hires’ work authorization—noncompliance carries penalties. [9](https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/act-75-e-verify-construction-employees)[10](https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/2019/0/0075..HTM?67)

Anti‑discrimination & workplace policies

The Pennsylvania Human Relations Act (PHRA) prohibits employment discrimination and requires employers to post the Fair Employment notice. In 2023, the Pennsylvania Human Relations Commission (PHRC) adopted regulations clarifying that “sex” includes pregnancy, sexual orientation, gender identity or expression, and related traits; it also clarified protections tied to religion and to race (including hair texture and protective hairstyles). Ensure your policies and training reflect these definitions and your postings are current. [11](https://www.pa.gov/agencies/hrmoa/programs/workplace-support/required-postings)[12](https://www.pa.gov/agencies/phrc/phrc-news---information/newsroom/new-lgbtq-hairstyle-and-religion-regulations-approved-in-pennsylvania-)

Handbooks: Under the National Labor Relations Act (NLRA), even non‑union employers must draft rules that don’t chill protected concerted activity. The NLRB’s 2023 Stericycle decision presumes a rule unlawful if a “reasonable employee” could interpret it to restrict Section 7 rights—employers must narrowly tailor and justify their rules. Review confidentiality, civility, social media, device, and investigation rules with this lens. [13](https://www.nlrb.gov/news-outreach/news-story/board-adopts-new-standard-for-assessing-lawfulness-of-work-rules)[14](https://www.fisherphillips.com/en/news-insights/employers-still-need-to-follow-nlrbs-strict-handbook-rules.html)

Joint employment: The NLRB’s expansive 2023 joint‑employer rule was vacated by a federal court in March 2024, and the NLRB later dismissed its appeal. For now, the 2020, more employer‑friendly standard remains in effect—but monitor for new rulemaking. [15](https://perkinscoie.com/insights/update/court-vacates-national-labor-relations-boards-joint-employer-rule)[16](https://www.uschamber.com/employment-law/unions/new-joint-employer-rule-gives-nlrb-license-to-declare-joint-employment-relationship)

Medical marijuana & workplace drug policies

Pennsylvania’s Medical Marijuana Act includes employment protections. In 2021, the Pennsylvania Superior Court recognized a private right of action for employees alleging workplace discrimination based on certified medical marijuana use. Update your drug testing policies, interactive processes, and job‑specific safety analyses accordingly. [17](https://www.pacourts.us/assets/opinions/Superior/out/J-A07009-21o%20-%20104861272142714862.pdf?cb=1)[18](https://www.littler.com/news-analysis/asap/pennsylvania-appeals-court-determines-states-medical-marijuana-act-includes)

Background checks & criminal history (CHRIA)

Pennsylvania’s Criminal History Record Information Act (CHRIA) limits how employers may use criminal records: consider only convictions relevant to the position, and if an adverse hiring decision is based in whole or part on criminal history, you must notify the applicant in writing. Build this step into your adverse‑action workflows (alongside federal FCRA). [19](https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/18/00.091..HTM)[20](https://www.attorneygeneral.gov/wp-content/uploads/2018/01/chria.pdf)

Wage payment, final pay, and required notices

The Pennsylvania Wage Payment and Collection Law (WPCL) requires regular, designated paydays; timely payment of wages, overtime, and wage supplements; and written notice of pay information at hire and when it changes. Officers/agents can, in some cases, be personally liable for unpaid wages. Review your onboarding materials, pay timing, and separation procedures. [21](https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1961/0/0329..HTM?65)

Unemployment notice at separation: Employers must provide the UC availability notice (Form UC‑1609) to separating employees (including reductions in hours). Add this to your termination checklist. [22](https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/uc/uc-forms/uc-1609.pdf)

Mandatory postings: Post all required state and federal notices, including the Minimum Wage, Equal Pay, Unemployment Compensation, Workers’ Compensation, PHRA, and Child Labor Act abstracts. The L&I “Mandatory Postings” page is the authoritative source and includes Spanish versions where required. [23](https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/mandatory-postings)

City & county laws that can change the rules

Philadelphia – Fair Workweek: Covered service, retail, and hospitality employers (generally 250+ employees and 30+ locations worldwide, including franchises) owe good‑faith estimates, 14‑day schedule posting, predictability pay, rest‑between‑shifts protections, and more. Update scheduling systems, consent templates, and training. [24](https://www.phila.gov/documents/fair-workweek-resources/)

Philadelphia – Paid Sick Leave: The Promoting Healthy Families and Workplaces Ordinance mandates earned sick leave; the City also notes 2025 POWER Act updates affecting enforcement. Keep your posters and accrual rules current. [25](https://www.phila.gov/documents/paid-sick-leave-information/)

Philadelphia – Wage Theft & POWER Act: The City’s wage‑theft ordinance provides an administrative route for workers to recover wages and now has enhanced enforcement under the May 27, 2025 “POWER Act.” Ensure payroll practices and recordkeeping can withstand scrutiny. [26](https://www.phila.gov/documents/wage-theft-complaint/)[27](https://natlawreview.com/article/philadelphia-enacts-powerful-new-worker-protection-ordinance)

Philadelphia – Salary History Ban: Employers may not ask about or rely on salary history when setting pay; enforcement began September 1, 2020 (with limited exceptions). Train recruiters and update application forms and interview scripts. [28](https://www.phila.gov/2020-08-06-city-announces-enforcement-date-for-ban-on-salary-history-questions/)

Pittsburgh – Paid Sick Days Act: Since 2020, employees accrue up to 40 hours (large employers) under the City’s ordinance. In June 2025, the City approved amendments—effective January 1, 2026—to increase accrual to 1:30 and annual caps (up to 72 hours for 15+ employers; 48 hours for smaller). Plan now for 2026 changes. [29](https://www.pittsburghpa.gov/City-Government/Legal-Services/Office-of-Equal-Protection/Paid-Sick-Days-Act)[30](https://www.littler.com/news-analysis/asap/pittsburgh-pennsylvania-joins-over-40-club-paid-sick-leave)

Allegheny County – Paid Sick Leave: Employers with 26+ employees must provide up to 40 hours of paid sick leave, accruing 1:35, with carryover rules unless hours are frontloaded. This does not displace stricter city ordinances. [31](https://www.palaborandemploymentblog.com/2022/01/articles/workplace-compliance/allegheny-countys-paid-sick-leave-ordinance-takes-effect/)[32](https://www.alleghenycounty.us/files/assets/county/v/1/government/health/documents/paid-sick-leave/15-21-or-11988-21.pdf)

Child labor compliance (if you hire minors)

Pennsylvania’s Child Labor Act regulates hours, occupations, and permits for workers under 18. Post the required abstract, confirm work‑permit procedures, and train supervisors on prohibited tasks. [33](https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/child-labor-act)

Noncompete agreements (special note for health care)

Pennsylvania continues to enforce reasonable noncompete and customer‑non‑solicitation agreements when supported by adequate consideration and tailored to legitimate business interests. However, Act 74 of 2024 (Fair Contracting for Health Care Practitioners) limits certain restrictive covenants for defined health‑care practitioners in agreements dated January 1, 2025 or later (e.g., duration limits and notice requirements to patients). Health‑care employers should update templates before hiring or renewing agreements. [34](https://www.ballardspahr.com/insights/alerts-and-articles/2024/08/pennsylvanias-new-noncompete-law-changes-the-rules-for-health-care-employers)

Five quick compliance wins for Pennsylvania employers

1. Audit exempt classifications and pay thresholds against the current federal \$684/week standard; document job duties and salary. [4](https://www.dol.gov/agencies/whd/overtime/salary-levels)

2. Refresh handbook rules (confidentiality, social media, civility, device use, investigations) using the Stericycle standard and train managers on protected concerted activity. [13](https://www.nlrb.gov/news-outreach/news-story/board-adopts-new-standard-for-assessing-lawfulness-of-work-rules)

3. Update E‑Verify process if you’re in construction; maintain I‑9 and E‑Verify records and internal audits. [9](https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/act-75-e-verify-construction-employees)

4. Post and distribute required notices (state + federal), and include the UC‑1609 unemployment notice at every separation. [23](https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/mandatory-postings)[22](https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/uc/uc-forms/uc-1609.pdf)

5. Localize policies for Philadelphia and Pittsburgh scheduling and sick‑leave rules; confirm accrual math and predictability pay logic in HRIS/timekeeping. [24](https://www.phila.gov/documents/fair-workweek-resources/)[25](https://www.phila.gov/documents/paid-sick-leave-information/)[29](https://www.pittsburghpa.gov/City-Government/Legal-Services/Office-of-Equal-Protection/Paid-Sick-Days-Act)

Frequently asked questions

What’s the minimum wage I have to post? Post the state Minimum Wage Act notice (and federal posters). The state minimum remains \$7.25/hour as of now; monitor legislative movement. [1](https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/pennsylvania-s-minimum-wage-act)[3](https://www.spotlightpa.org/news/2025/06/minimum-wage-15-pennsylvania-house-senate-philadelphia/)

Do I have to pay for short security checks or bag screenings? In Pennsylvania, yes—security screening and related waiting time on premises counts as “hours worked.” [7](https://law.justia.com/cases/pennsylvania/supreme-court/2021/43-eap-2019.html)

Can I ask applicants about prior pay in Philadelphia? No—Philadelphia’s salary history ban prohibits asking or relying on prior pay (with narrow exceptions). Train recruiters and update forms. [28](https://www.phila.gov/2020-08-06-city-announces-enforcement-date-for-ban-on-salary-history-questions/)

Does the new federal overtime rule apply? A court vacated the 2024 rule; DOL is applying 2019 thresholds pending further action. Check the DOL’s current guidance before classifying roles. [4](https://www.dol.gov/agencies/whd/overtime/salary-levels)

Your next steps

• Schedule a compliance review—wage & hour classifications, local sick‑leave and scheduling rules, PHRA‑aligned EEO policy updates, background‑check workflows, and posting/notice checklists.

• Map where employees actually work (on‑site, hybrid, remote) to determine which local ordinances apply (Philadelphia, Pittsburgh, Allegheny County).

• Update your separation packets to include the UC‑1609 form and instructions. [22](https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/uc/uc-forms/uc-1609.pdf)

Have questions about Pennsylvania employment law compliance? Call the attorneys at the Ament Law Group today at (724) 733‑3500.