Current Minimum Wage on Tipped Workers in Pennsylvania

1. What is the current minimum wage for tipped workers in Pennsylvania?


The current minimum wage for tipped workers in Pennsylvania is $2.83 per hour. This rate has not changed since 1998.

2. Is there a difference between the tipped minimum wage and regular minimum wage in Pennsylvania?


Yes, there is a difference between the tipped minimum wage and regular minimum wage in Pennsylvania. The tipped minimum wage is $2.83 per hour, while the regular minimum wage is currently $7.25 per hour. Tipped employees must also make at least $7.25 per hour when tips are included, but if their tips do not bring them up to this level, their employer must make up the difference. In contrast, regular minimum wage employees do not rely on tips and must be paid at least $7.25 per hour for all hours worked.

3. How much do tipped workers make per hour in Pennsylvania?


In Pennsylvania, the minimum wage for tipped workers is $2.83 per hour. Tipped workers are required to receive at least $7.25 per hour when tips are included in their wages, so if a worker does not make enough in tips to reach this amount, the employer must pay the difference.

4. Has the minimum wage for tipped employees increased in Pennsylvania recently?


Yes, the minimum wage for tipped employees in Pennsylvania is set to increase in July 2020 and 2021. Currently, the minimum cash wage for tipped employees in Pennsylvania is $2.83 per hour, but it will increase to $3.75 on July 1, 2020 and $4.35 on July 1, 2021. This gradual increase is part of a state-wide plan to ultimately reach a minimum cash wage of $5.00 by July 1, 2022.

5. Are there any pending changes to the tipped minimum wage in Pennsylvania?


As of August 2021, there are currently no pending changes to the tipped minimum wage in Pennsylvania. The state’s tipped minimum wage remains at $2.83 per hour, which is 70% of the regular minimum wage of $7.25 per hour. However, legislation has been introduced in recent years to increase the tipped minimum wage in Pennsylvania, but it has not yet been passed.

6. Can a tipped worker afford a living wage in Pennsylvania?


Currently, the minimum cash wage for tipped workers in Pennsylvania is $2.83 per hour, per state law. This means that in order to make a living wage, a tipped worker would need to make up the difference between this hourly rate and the established living wage for their area.

According to the MIT Living Wage Calculator, the living wage for a single adult in Pennsylvania is $12.88 per hour. This means that a tipped worker would need to earn an additional $10.05 per hour in tips in order to reach a living wage.

However, it’s important to note that this calculation assumes full-time work (40 hours per week) and does not take into account potential fluctuations or inconsistencies in tip income. Additionally, tipped workers may have lower wages due to factors such as tipping culture and discrimination based on race or gender.

Overall, it can be challenging for a tipped worker to solely rely on tips to afford a living wage in Pennsylvania. It’s important for employers and policymakers to consider increasing the minimum cash wage and implementing policies that ensure fair and stable tip income for workers.

7. How does Pennsylvania’s minimum wage for tipped employees compare to neighboring states?

As of 2021, Pennsylvania’s minimum wage for tipped employees is $2.83 per hour, which is significantly lower than the federal minimum wage for tipped employees of $7.25 per hour.

Compared to its neighboring states, Pennsylvania has a lower minimum wage for tipped employees than New Jersey and New York, which both have a tipped minimum wage of $3.13 per hour. However, it is higher than Ohio’s minimum wage for tipped employees, which is only $4.40 per hour.

It should also be noted that some cities in neighboring states have enacted their own higher minimum wages for tipped employees (such as in Philadelphia where the tipped minimum wage is set at $5 per hour), making them more comparable to or even higher than Pennsylvania’s minimum wage for tipped employees.

In general, many states have either a higher state-specific minimum wage or a higher federal tip credit rate than Pennsylvania, meaning that the overall earnings of tipped workers may be higher in those states.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Pennsylvania?


Yes, employers are required to make up the difference if a tipped worker’s hourly wages, including tips, do not meet the standard minimum wage rate in Pennsylvania. This is known as the “tip credit” provision and ensures that all workers receive at least the state’s minimum wage for all hours worked.

9. Do cities within Pennsylvania have their own separate tipped minimum wage rates or is it consistent throughout the state?


Cities within Pennsylvania do not have their own separate tipped minimum wage rates. The state has a consistent tipped minimum wage rate of $2.83 per hour, which is the same as the federal tipped minimum wage.

10. Has there been any discussion of increasing the minimum wage for tipped employees in Pennsylvania?


Yes, there has been discussion and ongoing efforts to increase the minimum wage for tipped employees in Pennsylvania. In 2019, the state legislature proposed a bill to gradually increase the minimum wage for tipped workers from $2.83 per hour to $15 by 2025. However, the bill did not pass and the minimum wage for tipped employees remains at $2.83. Some advocates argue that this low minimum wage creates a reliance on tips and can lead to wage theft and financial insecurity for workers. There are ongoing debates and discussions surrounding this issue among policymakers, labor groups, and restaurant industry representatives in Pennsylvania.

11. Does Pennsylvania have a different minimum wage for servers versus other types of tipped workers?


Yes, Pennsylvania has a lower minimum wage for tipped workers, including servers and other tipped employees. The current minimum cash wage for tipped workers in Pennsylvania is $2.83 per hour. However, if an employee’s tips do not bring them up to the regular minimum wage of $7.25 per hour, their employer is required to make up the difference.

12. How does Pennsylvania’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?


Pennsylvania’s current tipped employee minimum wage is $2.83 per hour. This is lower than the federal tipped minimum wage of $7.25 per hour and also lower than the rates in neighboring states such as New York, New Jersey, Delaware, and Maryland where the tipped minimum wage ranges from $7.15 to $10 per hour. However, Pennsylvania’s tipped employee minimum wage is slightly higher than that of Ohio ($4.30 per hour) and West Virginia ($2.13 per hour).

13. In Pennsylvania, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?


No, employers are not allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees in Pennsylvania. The minimum wage for tipped workers in the state is $2.83 per hour, but tips cannot be used to make up the difference between this rate and the standard minimum wage of $7.25 per hour. Employers must ensure that their tipped employees receive at least the standard minimum wage for all hours worked, and they may not take a tip credit towards this requirement.

14. Is there a plan to increase the tip credit percentage in Pennsylvania, which currently has one of the lowest rates nationwide?


At this time, there is no specific plan in place to increase the tip credit percentage in Pennsylvania. The state’s current minimum wage laws and tip credit rates are determined by the Pennsylvania Department of Labor and Industry, and any changes would need to go through the legislative process. It is possible that there may be proposals or discussions about increasing the tip credit percentage in the future, but as of now there is no confirmed plan to do so.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in Pennsylvania?


Yes, there are some exemptions from paying the state’s established tip credit rate for certain industries or professions in Pennsylvania. These include:

1. Tipped Employees in Hotel and Laundry Occupations: In Pennsylvania, employers in the hotel and laundry occupations can pay tipped employees a reduced minimum wage of $2.83 per hour rather than the standard minimum wage of $7.25 per hour.
2. Student Learners: Employers can pay student learners (students enrolled in vocational or technical schools) at a rate not less than 85% of the standard minimum wage.
3. Trainees: Certain trainees who are under the age of 20 and have been employed for not more than 90 days by any employer may be paid a training wage of $4.25 per hour for their first 90 days.
4. Disabled Workers: Employers who obtain special licenses from the Department of Labor and Industry may employ individuals with disabilities at rates below the standard minimum wage.
5. Employees under Collective Bargaining Agreements: Some collective bargaining agreements may allow for lower tip credit rates or different arrangements for tipped employees.
6. Government Employees: Government employees, including federal employees, are exempt from state minimum wage laws.
7. Certain Agricultural Workers: Agricultural employees who work on small farms that do not exceed $500,000 in annual gross volume of sales are exempt from the state minimum wage requirement.

It is important to note that these exemptions may vary depending on federal law and any additional local or county regulations. Employers should consult with the Pennsylvania Department of Labor and Industry or an employment lawyer for specific guidance on tip credit exemptions in their industry or profession.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?


Under state law [insert state], legislators do have the power to override local laws, including those regarding the establishment of a separate tipped worker minimum wage rate. However, this power varies by state and may require certain parameters or processes to be followed before such an override can take place. It is important to consult with your state’s laws and legislation governing minimum wage rates for tipped workers to determine the specific processes and limitations that may apply in your situation.

17. Has Pennsylvania recently adjusted its tip pooling laws affecting server wages?


There have been some recent changes to Pennsylvania’s tip pooling laws that affect server wages. In October 2020, the Pennsylvania Supreme Court ruled that employers can no longer require servers to share their tips with other employees, such as kitchen staff or bartenders. This decision was based on a change to the state’s Minimum Wage Act, which now states that all tips belong solely to the employee who receives them, unless there is a legitimate tip pool in place.

This means that servers are now entitled to keep all of their tips, unless they voluntarily agree to participate in a tip pool with other employees. Any tip pooling agreements must also be fair and reasonable, with servers retaining at least 50% of their own tips. Employers are also prohibited from taking any portion of an employee’s tips for themselves.

Additionally, under federal law, employers are required to pay servers the full minimum wage for all hours worked if they participate in a valid tip pool. This means that if an employer takes a “tip credit” towards the minimum wage for tipped employees, they must ensure that the total amount earned by each tipped employee (including wages and tips) equals at least the full minimum wage. Failure to do so could result in legal action against the employer.

It is important for employers and employees alike to understand these changes and ensure compliance with both state and federal laws regarding tip pooling and tipped wages.

18. How do Pennsylvania’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?


Pennsylvania’s current hourly minimum wage for non-tipped workers is $7.25, which is the same as the federal minimum wage. However, for restaurant personnel who receive tips, the state minimum cash wage is $2.83 per hour, which is significantly lower. This means that employers can pay their tipped employees a lower base wage and expect them to make up the difference in tips from customers.

19. In Pennsylvania, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?


Yes, in Pennsylvania, restaurants and other establishments may be subject to different minimum wage rates for employees who receive tips. The two categories are known as “tipped employees” and “non-tipped employees.”

Tipped Employees:

Under federal law, a tipped employee is defined as someone who regularly receives more than $30 per month in tips. The current federal minimum wage for tipped employees is $2.13 per hour, but employers are required to ensure that the employee’s total hourly wage (including tips) meets or exceeds the state minimum wage of $7.25 per hour.

In Pennsylvania, tipped employees are entitled to a minimum cash wage of at least $2.83 per hour as of 2021. However, if an employee does not earn enough in tips to bring their total hourly wage up to the state minimum wage, the employer must make up the difference.

Non-Tipped Employees:

Non-tipped employees are those who do not regularly receive tips and are paid at least $7.25 per hour under federal law (or higher depending on local requirements). In Pennsylvania, this includes employees in positions such as cooks, dishwashers, and janitors.

However, certain employers may also fall under a separate category known as “executive, administrative or professional.” These employees may be exempt from the state minimum wage requirements and instead must earn at least $455 per week (as of 2020).

It’s important for employers in Pennsylvania to ensure they are correctly classifying their employees and paying them accordingly based on their job duties and tip-receiving status. Failure to do so could result in legal consequences and penalties.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?

One possible source for information on US states’ and territories’ minimum wage laws for tipped workers is the National Employment Law Project (NELP), a nonprofit research and advocacy organization that focuses on policies affecting low-wage workers. NELP has a webpage dedicated to “Tipped Minimum Wage Laws by State,” which includes a map of the US showing the different minimum wage rates for tipped employees in each state.

Additionally, the Department of Labor website has resources about minimum wage laws, including specific information on tipped workers. They provide a chart that shows each state’s current minimum wage rate for tipped employees and the percentage of the regular minimum wage rate that they must be paid.

Another potential resource is the not-for-profit organization One Fair Wage, which advocates for eliminating the subminimum wage for tipped workers. They have published reports and analysis on different states’ policies related to tipped minimum wage.

Individual state government websites may also have information on their specific minimum wage laws for tipped workers. This can typically be found on state department of labor or workforce development websites.

It is important to note that there may be ongoing changes and updates to these laws, so it is recommended to check with reliable sources regularly for accurate and up-to-date information.