Changes to how Pennsylvania tipped workers are paid begin & More news


Pennsylvania’s tipped workers beginning Friday have extra protections, a transfer state officers say will stage the enjoying subject for employers competing in a good labor market.

Changes to the state’s Minimum Wage Act have taken impact modernizing how employers pay tipped workers whereas working to guarantee salaried workers with fluctuating schedules are appropriately compensated for extra time, in accordance to the discharge from the state Department of Labor & Industry.

The modifications embrace:

  • An replace to the definition of “tipped employee,” adjusted for inflation since 1977, growing the quantity in suggestions an worker should obtain month-to-month from $30 to $135 earlier than an employer can scale back an worker’s hourly pay from $7.25 per hour to as little as $2.83 per hour.
  • Alignment with a latest federal regulatory replace governing employer tip credit to permit employers to take a tip credit score beneath sure situations, together with that the worker spends at the very least 80 p.c of their time on duties that instantly generate suggestions, generally referred to as the 80/20 rule.
  • Alignment with a latest federal regulatory replace to permit for tip pooling amongst workers however normally excluding managers, supervisors, and enterprise house owners.
  • A prohibition on employers deducting bank card and different noncash cost processing transaction charges from an worker’s tip left with a bank card or different noncash technique of cost.
  • A requirement for employers to make clear that computerized service prices are not gratuities for tipped workers

“As a former service industry worker, I have seen firsthand how employees can be taken advantage of due to outdated rules and regulations when it comes to how they are paid,” mentioned company Secretary Jennifer Berrier. “Servers, bartenders, hairstylists, nail techs, bellhops and dozens of other tipped-worker positions rely on the generosity of their customers for their livelihood and deserve regulatory protections that ensure these earned wages are theirs to keep.

“I know that struggle personally, hoping you earn enough money each shift to make ends meet. These updated regulations not only seek to keep tips in the pockets of workers who rightfully earned them, but to also ensure employers are playing by the same, fair rules.”

The rules additionally replace the definition of “regular rate” for salaried workers whose extra time pay is decided by the fluctuating workweek technique, in accordance to the discharge, clarifying that for the aim of calculating extra time the common charge relies on a 40-hour workweek.

However, these modifications don’t have an effect on extra time compensation rules for hourly workers, officers famous.

For extra data, go to L&I’s Overtime and Tipped Worker Rules webpage.

Morning Call reporter Molly Bilinski may be reached at [email protected].


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