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.

PRINTER'S NO.   685

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 19
                                               Session of
                                                 2025

     INTRODUCED BY TARTAGLIONE, STREET, KEARNEY, HUGHES, KANE, COSTA,
        COMITTA, SAVAL, CAPPELLETTI AND HAYWOOD, APRIL 28, 2025

     REFERRED TO LABOR AND INDUSTRY, APRIL 28, 2025


                                    AN ACT
 1   Amending the act of January 17, 1968 (P.L.11, No.5), entitled
 2      "An act establishing a fixed minimum wage and overtime rates
 3      for employes, with certain exceptions; providing for minimum
 4      rates for learners and apprentices; creating a Minimum Wage
 5      Advisory Board and defining its powers and duties; conferring
 6      powers and imposing duties upon the Department of Labor and
 7      Industry; imposing duties on employers; and providing
 8      penalties," further providing for definitions, for minimum
 9      wages and for exemptions; providing for gratuities; further
10      providing for enforcement and rules and regulations, for
11      penalties and for civil actions; repealing provisions
12      relating to preemption; and providing for local option and
13      for taxpayer savings and reinvestment.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    Section 3(d) of the act of January 17, 1968
17   (P.L.11, No.5), known as The Minimum Wage Act of 1968, is
18   amended to read:
19      Section 3.    Definitions.--As used in this act:
20      * * *
21      (d)   "Wages" mean compensation due to any employe by reason
22   of his or her employment, payable in legal tender of the United
23   States or checks on banks convertible into cash on demand at
 1   full face value, subject to such deductions, charges or
 2   allowances as may be permitted by regulations of the secretary
 3   under section 9.
 4      "Wage" paid to any employe includes the reasonable cost, as
 5   determined by the secretary, to the employer for furnishing such
 6   employe with board, lodging, or other facilities, if such board,
 7   lodging, or other facilities are customarily furnished by such
 8   employer to his or her employes: Provided, That the cost of
 9   board, lodging, or other facilities shall not be included as a
10   part of the wage paid to any employe to the extent it is
11   excluded therefrom under the terms of a bona fide collective-
12   bargaining agreement applicable to the particular employe:
13   Provided, further, That the secretary is authorized to determine
14   the fair value of such board, lodging, or other facilities for
15   defined classes of employes and in defined areas, based on
16   average cost to the employer or to groups of employers similarly
17   situated, or average value to groups of employes, or other
18   appropriate measures of fair value. Such evaluations, where
19   applicable and pertinent, shall be used in lieu of actual
20   measure of cost in determining the wage paid to any employe.
21      In determining the hourly wage an employer is required to pay
22   a tipped employe, the amount paid such employe by his or her
23   employer shall be an amount equal to: (i) the cash wage paid the
24   employe which for the purposes of the determination shall be not
25   less than [the cash wage required to be paid the employe on the
26   date immediately prior to the effective date of this
27   subparagraph] seventy percent of the wage in effect under
28   section 4; and (ii) an additional amount on account of the tips
29   received by the employe which is equal to the difference between
30   the wage specified in subparagraph (i) and the wage in effect

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 1   under section 4 of this act. The additional amount on account of
 2   tips may not exceed the value of tips actually received by the
 3   employe. The previous sentence shall not apply with respect to
 4   any tipped employe unless:
 5      (1)   Such employe has been informed by the employer of the
 6   provisions of this subsection;
 7      (2)   All tips received by such employe have been retained by
 8   the employe and shall not be surrendered to the employer to be
 9   used as wages to satisfy the requirement to pay the current
10   hourly minimum rate in effect; where the gratuity is added to
11   the charge made by the establishment, either by the management,
12   or by the customer, the gratuity shall become the property of
13   the employe; except that this subsection shall not be construed
14   to prohibit the pooling of tips among employes who customarily
15   and regularly receive tips.
16      * * *
17      Section 2.   Section 4(a) of the act is amended by adding a
18   paragraph to read:
19      Section 4.   Minimum Wages.--Except as may otherwise be
20   provided under this act:
21      (a)   Every employer shall pay to each of his or her employes
22   wages for all hours worked at a rate of not less than:
23      * * *
24      (9)   Fifteen dollars ($15) an hour beginning January 1, 2026.
25   Each succeeding January 1 thereafter, the minimum wage shall be
26   increased by an annual cost-of-living adjustment calculated by
27   the secretary using the percentage change in the Consumer Price
28   Index for All Urban Consumers (CPI-U) for the Pennsylvania, New
29   Jersey, Delaware and Maryland area. In calculating the
30   adjustment, the secretary shall use the most recent twelve-month

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 1   period for which figures have been officially reported by the
 2   United States Department of Labor, Bureau of Labor Statistics.
 3   At least sixty days prior to the date the adjustment is due to
 4   take effect, the percentage increase and the minimum wage
 5   amount, rounded to the nearest multiple of five cents (5¢),
 6   shall be determined by the secretary. The secretary shall,
 7   within ten days following the determination, forward a notice of
 8   the determination to the Legislative Reference Bureau for
 9   publication in the next available issue of the Pennsylvania
10   Bulletin. If in a year the increase to the minimum wage does not
11   provide a minimum wage greater than or equal to the minimum wage
12   under Federal law, the minimum wage shall be increased to the
13   minimum wage under Federal law.
14      * * *
15      Section 3.     Section 5(c)(2) of the act is amended and the
16   subsection is amended by adding a paragraph to read:
17      Section 5.     Exemptions.--* * *
18      (c)    * * *
19      (2)    Such employer shall pay the full amount of the minimum
20   wage under section 4(a)(8) beginning July 1, 2008 through
21   December 31, 2025.
22      (3)    Such employer shall pay the full amount of the minimum
23   wage under section 4(a)(9) beginning January 1, 2026.
24      Section 4.     The act is amended by adding a section to read:
25      Section 5.2.     Gratuities.--(a)    A gratuity shall be the
26   property of the employe who received the voluntary monetary
27   contribution from a guest, patron or customer for services
28   rendered. An employer shall not take a gratuity or a part of a
29   gratuity received by an employe from a guest, customer or
30   patron.

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 1      (b)   An employer that accepts payment of a gratuity by credit
 2   card shall pay the employe the full amount of the gratuity that
 3   the guest, customer or patron indicated on the credit card slip
 4   without a deduction for any credit card processing fees or costs
 5   that may be charged to the employer by the credit card company.
 6   The payment of a gratuity made by a guest, customer or patron
 7   using a credit card shall be made to the employe not later than
 8   the next regular payday after the date the guest, customer or
 9   patron authorized the credit card payment.
10      Section 5.   Sections 9, 12 and 13 of the act are amended to
11   read:
12      Section 9.   Enforcement; Rules and Regulations.--[The
13   secretary shall enforce this act.] (a)   The secretary shall make
14   and, from time to time, revise regulations, with the assistance
15   of the board, when requested by the secretary, which shall be
16   deemed appropriate to carry out the purposes of this act and to
17   safeguard the minimum wage rates thereby established. Such
18   regulations may include, but are not limited to, regulations
19   defining and governing bona fide executive, administrative, or
20   professional employes and outside salespersons, learners and
21   apprentices, their number, proportion, length of learning
22   period, and other working conditions; [handicapped] workers with
23   disabilities; part-time pay; overtime standards; bonuses;
24   allowances for board, lodging, apparel, or other facilities or
25   services customarily furnished by employers to employes;
26   allowances for gratuities; or allowances for such other special
27   conditions or circumstances which may be incidental to a
28   particular employer-employe relationship.
29      (b)   The secretary shall have the authority to investigate
30   possible violations of this act and to assess administrative

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 1   penalties under section 12.
 2      Section 12.   Penalties.--(a)   Any employer and his or her
 3   agent, or the officer or agent of any corporation, who
 4   discharges or in any other manner discriminates against any
 5   employe because such employe has testified or is about to
 6   testify before the secretary or his or her representative in any
 7   investigation or proceeding under or related to this act, or
 8   because such employer believes that said employe may so testify
 9   shall, upon conviction thereof in a summary proceeding, be
10   sentenced to pay a fine of not less than [five hundred dollars
11   ($500)] one thousand five hundred dollars ($1,500) nor more than
12   [one thousand dollars ($1,000)] three thousand dollars ($3,000),
13   and in default of the payment of such fine and costs, shall be
14   sentenced to imprisonment for not less than ten days nor more
15   than ninety days.
16      (b)   Any employer or the officer or agent of any corporation
17   who pays or agrees to pay any employe less than the rates
18   applicable to such employe under this act shall, upon conviction
19   thereof in a summary proceeding, be sentenced to pay a fine of
20   not less than [seventy-five dollars ($75)] two hundred twenty-
21   five dollars ($225) nor more than [three hundred dollars ($300)]
22   nine hundred dollars ($900) or to undergo imprisonment of not
23   less than ten nor more than sixty days, or both. Each week in
24   which such employe is paid less than the rate applicable to him
25   or her under this act and for each employe who is paid less than
26   the prescribed rate, a separate offense shall be deemed to
27   occur. Any agreement between the employer and the employe to
28   work for less than the applicable wage rate shall be no defense
29   to action by the Commonwealth under this section.
30      (c)   Any employer or the officer or agent of any corporation

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 1   who violates any other provision of this act or of any
 2   regulation issued thereunder shall, upon conviction thereof in a
 3   summary proceeding, be sentenced to pay a fine of not less than
 4   [one hundred dollars ($100)] three hundred dollars ($300) nor
 5   more than [five hundred dollars ($500)] one thousand five
 6   hundred dollars ($1,500), and each day of such failure to comply
 7   with this act or regulation, shall constitute a separate
 8   offense.
 9      Section 13.    Civil Actions.--(a)   If any employe is paid by
10   his or her employer less than the minimum wages provided by
11   section 4 of this act or by any regulation issued thereunder,
12   such worker may recover in a civil action the full amount of
13   such minimum wage less any amount actually paid to the worker by
14   the employer, together with costs and such reasonable attorney's
15   fees as may be allowed by the court, and any agreement between
16   the employer and the worker to work for less than such minimum
17   wage shall be no defense to such action. [At the request of any
18   employe paid less than the minimum wage to which such employe
19   was entitled under this act and regulations issued thereunder,
20   the secretary may take an assignment of such wage claim, in
21   trust for the assigning worker and may bring any legal action
22   necessary to collect such claim,]
23      (b)     The secretary may bring any legal action necessary to
24   collect the wages of any employe who is paid by his or her
25   employer less than the minimum wages provided by section 4 or by
26   any regulation issued thereunder and the employer shall be
27   required to pay the cost and such reasonable attorney's fees as
28   may be allowed by the court.
29      (c)     In an action brought under this section, whether brought
30   by the employe or by the secretary, where there is a finding of

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 1   a violation by the employer under this act, the employer shall
 2   be liable for any fees and costs associated with enforcement of
 3   this act and liquidated damages in an amount equal to the wages
 4   or overtime compensation owed to the employe unless the employer
 5   shows that the act or omission resulting in the nonpayment of
 6   wages was in good faith and the employer had reasonable grounds
 7   for believing that the act or omission was not in violation of
 8   this act.
 9      Section 6.   Section 14.1 of the act is repealed:
10      [Section 14.1.   Preemption.--(a)     Except as set forth in
11   subsection (b), this act shall preempt and supersede any local
12   ordinance or rule concerning the subject matter of this act.
13      (b)   This section does not prohibit local regulation pursuant
14   to an ordinance which was adopted by a municipality prior to
15   January 1, 2006, and which remained in effect on January 1,
16   2006.]
17      Section 7.   The act is amended by adding sections to read:
18      Section 14.2.    Local Option.--(a)    A municipality may not
19   adopt a local ordinance or regulation providing for a minimum
20   wage greater than the wage provided under section 4 unless:
21      (1)   the municipality submits a declaration of its intent to
22   set a greater minimum wage policy to the secretary; and
23      (2)   a period of ninety days has lapsed since the submission
24   of intent to the secretary.
25      (b)   If a municipality fulfills the conditions of subsection
26   (a), a municipality that adopts an ordinance or regulation
27   providing for a greater minimum wage than the wage provided
28   under section 4 may also adopt provisions for the local
29   enforcement of the ordinance or regulation, including, but not
30   limited to, enforcement by private parties.

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 1      (c)   A municipality may withdraw its declaration of intent to
 2   set a greater minimum wage policy by adopting an ordinance to
 3   withdraw and submitting notice to the secretary. The notice of
 4   intent to withdraw shall include a copy of the ordinance the
 5   municipality will adopt to effectuate the withdrawal. The
 6   following shall apply:
 7      (1)   All prior ordinances or regulations or parts of
 8   ordinances or regulations or any prior acts taken by the
 9   municipality to set a greater minimum wage than provided under
10   section 4 shall be repealed by the adoption of the ordinance to
11   withdraw.
12      (2)   After withdrawal, nothing shall prohibit a municipality
13   from subsequently submitting a declaration of intent to set a
14   greater minimum wage policy under subsection (a).
15      (3)   After withdrawal, the municipality shall comply with all
16   provisions under this act.
17      (d)   Nothing in this act shall be construed to:
18      (1)   Authorize a municipality to adopt a wage lower than the
19   minimum wage as required by section 4 and 29 U.S.C. Ch. 8
20   (relating to fair labor standards).
21      (2)   Prohibit the secretary from enforcing this act.
22      (e)   Definition.--As used in this section, the term
23   "municipality" means a county, city, borough, incorporated town,
24   township, home rule municipality, optional plan municipality or
25   optional charter municipality.
26      Section 14.3.   Taxpayer Savings and Reinvestment.--(a)   One
27   year after the effective date of section 4(a)(9) and after each
28   subsequent yearly increase to the minimum wage thereafter, the
29   Secretary of Human Services shall determine the amount of money
30   that will be saved from the increase of wages to individuals

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 1   thereby making the individuals ineligible for programs under the
 2   Department of Human Services. The Secretary of Human Services
 3   shall:
 4      (1)   Publish the amount of savings on the publicly accessible
 5   Internet website of the Department of Human Services.
 6      (2)   Transmit a notice of the information under this section
 7   to the Legislative Reference Bureau for publication in the next
 8   available issue of the Pennsylvania Bulletin.
 9      (b)   Money saved by the Commonwealth under this section shall
10   be used to provide increases to child-care providers, direct-
11   care workers and for home-based and community-based services.
12   The Secretary of Human Services shall distribute money saved
13   under this section in the same manner that the providers are
14   paid. The programs that will receive the savings and the amounts
15   being augmented to each appropriation shall be forwarded to the
16   Legislative Reference Bureau for publication in the next
17   available issue of the Pennsylvania Bulletin.
18      Section 8.   This act shall take effect immediately.




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