SB 341 — An Act amending the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, further providing for definitions; providing for duty of department to report; further providing for civil remedies and penalties, for liquidated damages and for criminal penalties; providing for employer liability; and establishing the Wage Enforcement Fund.

PRINTER'S NO.    278

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 341
                                                Session of
                                                  2025

     INTRODUCED BY TARTAGLIONE, KANE, FONTANA, HUGHES, STREET,
        SCHWANK, HAYWOOD AND COSTA, FEBRUARY 26, 2025

     REFERRED TO LABOR AND INDUSTRY, FEBRUARY 26, 2025


                                     AN ACT
 1   Amending the act of July 14, 1961 (P.L.637, No.329), entitled
 2      "An act relating to the payment of wages or compensation for
 3      labor or services; providing for regular pay days; conferring
 4      powers and duties upon the Department of Labor and Industry,
 5      including powers and duties with respect to the civil
 6      collection of wages; providing civil and criminal penalties
 7      for violations of the act; providing for their collection and
 8      disposition and providing for additional civil damages,"
 9      further providing for definitions; providing for duty of
10      department to report; further providing for civil remedies
11      and penalties, for liquidated damages and for criminal
12      penalties; providing for employer liability; and establishing
13      the Wage Enforcement Fund.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.     The definition of "employer" in section 2.1 of
17   the act of July 14, 1961 (P.L.637, No.329), known as the Wage
18   Payment and Collection Law, is amended and the section is
19   amended by adding a definition to read:
20      Section 2.1.     Definitions.--The following words and phrases
21   when used in this act shall have, unless the context clearly
22   indicates otherwise, the meanings given to them in this section:
23      * * *
 1      "Employer." Includes: [every person, firm, partnership,
 2   association, corporation, receiver or other officer of a court
 3   of this Commonwealth and any agent or officer of any of the
 4   above-mentioned classes employing any person in this
 5   Commonwealth.]
 6      (1)   The Commonwealth.
 7      (2)   A political subdivision of the Commonwealth.
 8      (3)   An authority created by the General Assembly.
 9      (4)   An instrumentality or agency of the Commonwealth.
10      (5)   Every person, firm, partnership, association,
11   corporation, receiver or other officer of a court of this
12   Commonwealth.
13      (6)   An agent or officer of any of the persons or entities
14   described in paragraphs (1), (2), (3), (4) and (5) employing any
15   person in this Commonwealth.
16      * * *
17      "High violation industry."     An industry that incurs at least
18   25 violations over a two-year period.
19      * * *
20      Section 2.     The act is amended by adding a section to read:
21      Section 8.1.     Duty of Department to Report.--(a)   The
22   department shall collect on a quarterly basis the following data
23   categorized by industry:
24      (1)   number of violations;
25      (2)   amount of fines collected;
26      (3)   nature of violations;
27      (4)   number of individual complaints filed;
28      (5)   number of complaints resolved;
29      (6)   amount of unpaid wages owed;
30      (7)   amount of unpaid wages recovered;

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 1      (8)    number of pending individual complaints;
 2      (9)    number of workplaces investigated from complaints;
 3      (10)    number of workplaces investigated proactively;
 4      (11)    number of workplaces reinvestigated following
 5   violations; and
 6      (12)    number of subsequent violations.
 7      (b)    On a semiannual basis, the department shall prepare and
 8   submit a report of the data collected under subsection (a) to
 9   the chairperson of the Labor and Industry Committee of the
10   Senate and the chairperson of the Labor and Industry Committee
11   of the House of Representatives, and shall post the report on
12   the department's publicly accessible Internet website.
13      (c)    The secretary shall investigate high-violation
14   industries no less than quarterly, train investigators to
15   recognize basic labor, health and safety violations and engage
16   in cross-agency referrals to protect workers' rights.
17      Section 3.     Section 9.1(c) of the act is amended and the
18   section is amended by adding subsections to read:
19      Section 9.1.     Civil Remedies and Penalties.--* * *
20      (c)    The employe or group of employes, labor organization or
21   party to whom any type of wages is payable may, in the
22   alternative, inform the secretary of the wage claim against an
23   employer or former employer, and the secretary shall, unless the
24   claim appears to be frivolous, immediately notify the employer
25   or former employer of such claim by certified mail. If the
26   employer or former employer fails to pay the claim or make
27   satisfactory explanation to the secretary of his failure to do
28   so within ten days after receipt of such certified notification,
29   thereafter, the employer or former employer shall be liable for
30   a penalty of [ten percent (10%) of that portion of the claim

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 1   found to be justly due.] two thousand dollars ($2,000) per
 2   violation of this act or the regulations of this act or equal to
 3   triple the unpaid wages in damages to the employe, whichever is
 4   greater, and attorney fees. Each week in which an employe is
 5   paid less than the applicable wage under this act and each
 6   employe who is paid less than the prescribed rate shall
 7   constitute a separate violation that shall be subject to a
 8   separate penalty. A good faith dispute or contest as to the
 9   amount of wages due or the good faith assertion of a right of
10   set-off or counter-claim shall be deemed a satisfactory
11   explanation for nonpayment of such amount in dispute or claimed
12   as a set-off or counter-claim. The secretary [shall have a cause
13   of action against the employer or former employer for recovery
14   of such penalty and the same] may issue an order and levy the
15   civil penalty only after affording the accused party the
16   opportunity for a hearing as provided under 2 Pa.C.S. (relating
17   to administrative law and procedure). The penalty may be
18   included in any subsequent action by the secretary on said wage
19   claim or may be exercised separately after adjustment of such
20   wage claim without court action. At the request of an employe,
21   the department shall assign that portion of the money due that
22   constitutes wages, wage supplements, interest on wages, or wage
23   supplements, and liquidated damages due the employe, to the
24   employe and shall file an order in that amount in the name of
25   the employe with the county clerk of the county where the
26   employer resides or has a place of business. The filing of the
27   order shall have the full force and effect of a judgment duly
28   docketed in the office of the clerk.
29      * * *
30      (h)   It is unlawful for an employer or the employer's agent,

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 1   or the officer or agent of a corporation, to discharge or in any
 2   other manner discriminate against an employe who:
 3      (1)   files or submits a complaint under this act;
 4      (2)   cooperates with the secretary or the secretary's
 5   representative, submits evidence, testifies or is about to
 6   testify before the secretary or the secretary's representative
 7   in any investigation or proceeding under or related to this act;
 8      (3)   the employer believes may take the actions under this
 9   subsection or subsection (i);
10      (4)   exercises any right under this act or any regulation
11   implementing its provisions; or
12      (5)   provides assistance or information to another employe
13   about this act.
14      (i)   A first offense under subsection (h) shall be graded as
15   a summary offense. A second or subsequent offense under
16   subsection (h), committed within a five-year period of the prior
17   offense, shall be graded as a misdemeanor of the third degree
18   and shall be punishable by a fine of not less than one thousand
19   dollars ($1,000) nor more than three thousand dollars ($3,000)
20   or to imprisonment of not less than 10 days nor more than 100
21   days. Each day of the failure to comply with subsection (h) or
22   the regulations of subsection (h) and each employe who is
23   discharged or in any other manner discriminated against shall
24   constitute a separate offense subject to a separate penalty. An
25   employer and the employer's agent, or the officer or agent of
26   any corporation, may also be required to pay the employe an
27   amount set by the court sufficient to compensate the employe and
28   deter future violations.
29      Section 4.     Sections 10 and 11.1 of the act are amended to
30   read:

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 1      Section 10.     Liquidated Damages.--Where wages remain unpaid
 2   for thirty days beyond the regularly scheduled payday, or, in
 3   the case where no regularly scheduled payday is applicable, for
 4   sixty days beyond the filing by the employe of a proper claim or
 5   for sixty days beyond the date of the agreement, award or other
 6   act making wages payable, or where shortages in the wage
 7   payments made exceed five percent (5%) of the gross wages
 8   payable on any two regularly scheduled paydays in the same
 9   calendar quarter, and no good faith contest or dispute of any
10   wage claim including the good faith assertion of a right of set-
11   off or counter-claim exists accounting for such non-payment, the
12   employe shall be entitled to claim, in addition, as liquidated
13   damages an amount equal to [twenty-five percent (25%) of the
14   total amount of wages due, or five hundred dollars ($500),
15   whichever is greater.] triple the unpaid wages due or two
16   thousand dollars ($2,000), whichever is greater, and attorney
17   fees. Each week in which an employe is paid less than the
18   applicable wage under this act shall constitute a separate
19   violation that shall be subject to a separate penalty.
20      Section 11.1.     Criminal Penalties.--(a)   The secretary or any
21   employe, group of employes, labor organization or party to whom
22   any type of wages is payable may institute prosecutions under
23   this act.
24      (b)   In addition to any other penalty or punishment otherwise
25   prescribed by law, any employer who violates any provisions of
26   this act [shall be guilty of a summary offense and, upon
27   conviction thereof,] shall be punished by a fine of not [more]
28   less than three hundred dollars ($300) nor more than one
29   thousand dollars ($1,000), or by imprisonment up to 90 days, or
30   by both[, for each offense]. Each day of the failure to comply

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 1   with this act, and each employe against whom the employer or
 2   officer or agent of any corporation violated any other provision
 3   of this act, shall constitute a separate offense that shall be
 4   subject to a separate penalty. A first offense under this
 5   subsection shall be graded as a summary offense. A second or
 6   subsequent offense under this subsection, committed within a
 7   five-year period of the prior offense, shall be graded as a
 8   misdemeanor of the third degree and shall be punishable by a
 9   fine of not less than five hundred dollars ($500) nor more than
10   one thousand dollars ($1,000). The good faith contest or dispute
11   by any employer of any wage claim or the good faith assertion of
12   a right of set-off or counter-claim shall not be considered a
13   violation of this act: Provided, That the employer has paid all
14   wages due in excess of the amount in dispute or asserted to be
15   subject to a right of set-off or counter-claim. [Nonpayment of
16   wages to, on account of, or for the benefit of each individual
17   employe shall constitute a separate offense.]
18      (c)   Where such employer is a corporation, the president,
19   secretary, treasurer or officers exercising corresponding
20   functions shall each be guilty of such summary offense.
21      (d)   All fines or penalties collected under [this act shall
22   be paid into the State Treasury through the Department of
23   Revenue to the credit of the General Fund.] section 9.1 and this
24   section shall be deposited into the Wage Enforcement Fund
25   established under section 11.3.
26      Section 5.   The act is amended by adding sections to read:
27      Section 11.2.   Employer Liability.--An employer similar in
28   operation and ownership to another employer found in violation
29   of section 9.1(c) or (h) or 11.1(b) shall be deemed the same
30   employer for the purposes of this section if the employes of the

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 1   similar employer are engaged in substantially the same work in
 2   substantially the same working conditions under substantially
 3   the same supervisors, or if the similar employer has
 4   substantially the same production process, produces
 5   substantially the same products and has the same body of
 6   customers as the other employer found in violation of section
 7   9.1(c) or (h) or 11.1(b). The similar employer shall continue to
 8   be subject to section 9.1(c), (h) and (i) or 11.1(b) and shall
 9   be liable for the acts of the other employer under section
10   9.1(c), (h) and (i) or 11.1(b), as applicable.
11      Section 11.3.   Wage Enforcement Fund.--(a)   The Wage
12   Enforcement Fund is established in the State Treasury. The money
13   in the Wage Enforcement Fund shall consist of the fines and
14   penalties collected under sections 9.1 and 11.1.
15      (b)   Money in the Wage Enforcement Fund is appropriated, upon
16   approval of the Governor, to the department for periodic
17   inspections, for investigations of violations and for the
18   enforcement of this act and the act of January 17, 1968 (P.L.11,
19   No.5), known as The Minimum Wage Act of 1968, including, but not
20   limited to, staffing for inspection, investigation and
21   enforcement under this act and The Minimum Wage Act of 1968.
22      (c)   No money may be expended or obligated from the Wage
23   Enforcement Fund to any third party for any other purpose than
24   investigation, training investigators and enforcement under this
25   act and The Minimum Wage Act of 1968.
26      (d)   Money in the Wage Enforcement Fund shall not lapse at
27   any time or be transferred to any other fund.
28      (e)   No later than June 30 of each calendar year, the
29   department shall provide a report to the Governor and the
30   General Assembly, through the Secretary-Parliamentarian of the

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 1   Senate and the Chief Clerk of the House of Representatives,
 2   regarding the Wage Enforcement Fund. The report shall include:
 3      (1)   an accounting for the fines collected and deposited into
 4   the Wage Enforcement Fund;
 5      (2)   the expenditures and transfers from the Wage Enforcement
 6   Fund during the prior year;
 7      (3)   a description of the purposes for which expenditures
 8   from the Wage Enforcement Fund were made in the prior year; and
 9      (4)   a full account of the data collections required of the
10   department under section 7 of The Minimum Wage Act of 1968.
11      (f)   The department shall post the report required under
12   subsection (e) on the department's publicly accessible Internet
13   website no later than July 1 of each calendar year.
14      Section 6.   This act shall take effect in 60 days.




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