As of 2022, Pennsylvania’s state minimum wage rate is $7.25 per hour.
In Pennsylvania, tipped employees must be paid the state minimum wage which is $7.25 an hour. Employers can claim a tip credit. If they claim a tip credit, they pay you the cash minimum wage which is $2.83 an hour assuming you will make enough in tips to reach the minimum wage.
All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage. In Pennsylvania, the employer may not take more than the allowed amount of $4.42 an hour in a tip credit from workers’ earnings. That means a tipped worker must be paid an hourly wage of at least $6.45 an hour if they are working overtime hours.
Pennsylvania uses the federal law, which says that if a worker receives $30 or more a month in tips, they are considered a tipped employee.
Both Pennsylvania and federal laws state that any tips collected by an employee belong to the employee and not to their employer. An employer can only ask employees to turn over their tips if the employer claims a tip credit or if the employee participates in a valid tip pool.
Per federal law, if the employer claims a tip credit, then only employees who regularly receive tips can be part of the tip pool. Employees can’t be required to share their tips with employees who don’t usually receive their own tips.
Absolutely no tips from a tip pool are allowed to go to the employer, managers, or supervisors of a restaurant.
It is legal for an employer to pass the tip-portion of the credit card transaction fee off to the employee in all Pennsylvania counties except for Philadelphia County. Philadelphia County is the only county in the state that prohibits the practice.
Employers are required to provide break periods of at least 30 minutes for minors ages 14 through 17 who work five or more consecutive hours. Employers are not required to give breaks for employees 18 and over. If an employer does allow breaks, employees must be paid for the break if they last less than 20 minutes. If an employer allows meal periods, the employer is not required to pay employees for their meal period if they do not work during the meal period and it lasts more than 20 minutes. A collective bargaining agreement may also govern this issue.