SENATE AMENDED
PRIOR PRINTER'S NOS. 3991, 3997, 4291 PRINTER'S NO. 4314
No. 2873 Session of 1996
INTRODUCED BY STISH, SEPTEMBER 23, 1996
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 26, 1996
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 the minimum wage OF CERTAIN <--
9 EMPLOYEES DEFINITIONS. <--
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 4 of the act of January 17, 1968 (P.L.11, <--
13 No.5), known as The Minimum Wage Act of 1968, amended December
14 10, 1974 (P.L.916, No.303), July 1, 1978 (P.L.735, No.135),
15 December 15, 1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348,
16 No.79), is amended to read:
17 Section 4. Minimum Wages.--Except as may otherwise be
18 provided under this act:
19 (a) Every employer shall pay to each of his employes wages
20 for all hours worked at a rate of not less than:
21 (1) Two dollars sixty-five cents ($2.65) an hour upon the
1 effective date of this amendment.
2 (2) Two dollars ninety cents ($2.90) an hour during the year
3 beginning January 1, 1979.
4 (3) Three dollars ten cents ($3.10) an hour during the year
5 beginning January 1, 1980.
6 (4) Three dollars thirty-five cents ($3.35) an hour after
7 December 31, 1980.
8 (5) Three dollars seventy cents ($3.70) an hour beginning
9 February 1, 1989, and [thereafter.] ending September 30, 1996.
10 (6) Four dollars seventy-five cents ($4.75) an hour after
11 September 30, 1996, and before January 1, 1997.
12 (7) Five dollars ($5.00) an hour after December 31, 1996,
13 and before September 1, 1997.
14 (8) Five dollars fifty cents ($5.50) an hour after August
15 31, 1997, and before September 1, 1998.
16 (9) Six dollars ($6.00) an hour after August 31, 1998, and
17 before September 1, 1999.
18 (a.1) If the minimum wage set forth in the Fair Labor
19 Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.)
20 is increased above three dollars thirty-five cents ($3.35) an
21 hour, the minimum wage required under this section shall be
22 increased by the same amounts and effective the same date as the
23 increases under the Fair Labor Standards Act, and the provisions
24 of subsection (a) are suspended to the extent they [differ from]
25 are less than those set forth under the Fair Labor Standards
26 Act.
27 (a.2) On September 1, 1999, and every September 1
28 thereafter, the minimum wage shall be increased to a figure
29 obtained by dividing the Poverty Level for a family of three
30 persons, as set forth by the Department of Health and Human
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1 Services, by two thousand eighty and rounding the quotient to
2 the next highest cent. By August 31 of each year, the secretary
3 shall transmit a notice of the new rate to the Legislative
4 Reference Bureau for publication in the Pennsylvania Bulletin.
5 (b) The secretary, to the extent necessary to prevent
6 curtailment of employment opportunities, shall by regulations
7 provide for the employment of learners and students, under
8 special certificates at wages lower than the minimum wage
9 applicable under this section, and subject to such limitations
10 as to number, proportion and length of service as the secretary
11 shall prescribe: Provided, That the minimum wage prescribed
12 under this subsection (b) shall not be less than eighty-five
13 percent of the otherwise applicable wage rate in effect under
14 section 4. A special certificate issued under this subsection
15 shall provide that for six or less students for whom it is
16 issued shall, except during vacation periods, be employed on a
17 part-time basis and not in excess of twenty hours in any
18 workweek at a sub-minimum rate.
19 In the case of an employer who intends to employ seven or
20 more students, at a sub-minimum rate, the secretary may issue a
21 special certificate only if the employer certifies to the
22 secretary that employment of such students will not create a
23 substantial probability of reducing the full-time employment
24 opportunities for other workers.
25 (c) Employes shall be paid for overtime not less than one
26 and one-half times the employe's regular rate as prescribed in
27 regulations promulgated by the secretary: Provided, That
28 students employed in seasonal occupations as defined and
29 delimited by regulations promulgated by the secretary may, by
30 such regulations, be excluded from the overtime provisions of
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1 this act: And provided further, That the secretary shall
2 promulgate regulations with respect to overtime subject to the
3 limitations that no pay for overtime in addition to the regular
4 rate shall be required except for hours in excess of forty hours
5 in a workweek.
6 (d) An employe whose earning capacity is impaired by
7 physical or mental deficiency or injury may be paid less than
8 the applicable minimum wage if either a license specifying a
9 wage rate commensurate with the employe's productive capacity
10 has been obtained by the employer from the secretary or a
11 Federal certificate is obtained under section 14(c) of the Fair
12 Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et
13 seq.). A license obtained from the secretary shall be granted
14 only upon joint application of employer and employe.
15 Section 2. The addition of section 4(a)(6) of the act shall
16 apply retroactively to October 1, 1996.
17 SECTION 1. THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), KNOWN <--
18 AS THE MINIMUM WAGE ACT OF 1968, IS AMENDED BY ADDING A SECTION
19 TO READ:
20 SECTION 3.1. MINIMUM WAGE OF HOURLY TIPPED EMPLOYES.--IN
21 DETERMINING THE HOURLY WAGE AN EMPLOYER IS REQUIRED TO PAY A
22 TIPPED EMPLOYE, THE AMOUNT PAID SUCH EMPLOYE BY THE EMPLOYE'S
23 EMPLOYER SHALL BE IN AN AMOUNT EQUAL TO:
24 (1) THE CASH WAGE PAID THE EMPLOYE WHICH FOR THE PURPOSES OF
25 THE DETERMINATION SHALL BE NOT LESS THAN THE CASH WAGE REQUIRED
26 TO BE PAID THE EMPLOYE ON THE EFFECTIVE DATE OF THIS SECTION.
27 (2) AN ADDITIONAL AMOUNT ON ACCOUNT OF THE TIPS RECEIVED BY
28 THE EMPLOYE WHICH AMOUNT IS EQUAL TO THE DIFFERENCE BETWEEN THE
29 WAGE SPECIFIED IN PARAGRAPH (1) AND THE WAGE IN EFFECT UNDER
30 SECTION 4 OF THIS ACT.
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1 THE ADDITIONAL AMOUNT ON ACCOUNT OF TIPS MAY NOT EXCEED THE
2 VALUE OF THE TIPS ACTUALLY RECEIVED BY AN EMPLOYE.
3 SECTION 1. SECTION 3(D) OF THE ACT OF JANUARY 17, 1968 <--
4 (P.L.11, NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, AMENDED
5 DECEMBER 15, 1988 (P.L.1232, NO.150), IS AMENDED TO READ:
6 SECTION 3. DEFINITIONS.--AS USED IN THIS ACT:
7 * * *
8 (D) "WAGES" MEAN COMPENSATION DUE TO ANY EMPLOYE BY REASON
9 OF HIS EMPLOYMENT, PAYABLE IN LEGAL TENDER OF THE UNITED STATES
10 OR CHECKS ON BANKS CONVERTIBLE INTO CASH ON DEMAND AT FULL FACE
11 VALUE, SUBJECT TO SUCH DEDUCTIONS, CHARGES OR ALLOWANCES AS MAY
12 BE PERMITTED BY REGULATIONS OF THE SECRETARY UNDER SECTION 9.
13 "WAGE" PAID TO ANY EMPLOYE INCLUDES THE REASONABLE COST, AS
14 DETERMINED BY THE SECRETARY, TO THE EMPLOYER FOR FURNISHING SUCH
15 EMPLOYE WITH BOARD, LODGING, OR OTHER FACILITIES, IF SUCH BOARD,
16 LODGING, OR OTHER FACILITIES ARE CUSTOMARILY FURNISHED BY SUCH
17 EMPLOYER TO HIS EMPLOYES: PROVIDED, THAT THE COST OF BOARD,
18 LODGING, OR OTHER FACILITIES SHALL NOT BE INCLUDED AS A PART OF
19 THE WAGE PAID TO ANY EMPLOYE TO THE EXTENT IT IS EXCLUDED
20 THEREFROM UNDER THE TERMS OF A BONA FIDE COLLECTIVE-BARGAINING
21 AGREEMENT APPLICABLE TO THE PARTICULAR EMPLOYE: PROVIDED,
22 FURTHER, THAT THE SECRETARY IS AUTHORIZED TO DETERMINE THE FAIR
23 VALUE OF SUCH BOARD, LODGING, OR OTHER FACILITIES FOR DEFINED
24 CLASSES OF EMPLOYES AND IN DEFINED AREAS, BASED ON AVERAGE COST
25 TO THE EMPLOYER OR TO GROUPS OF EMPLOYERS SIMILARLY SITUATED, OR
26 AVERAGE VALUE TO GROUPS OF EMPLOYES, OR OTHER APPROPRIATE
27 MEASURES OF FAIR VALUE. SUCH EVALUATIONS, WHERE APPLICABLE AND
28 PERTINENT, SHALL BE USED IN LIEU OF ACTUAL MEASURE OF COST IN
29 DETERMINING THE WAGE PAID TO ANY EMPLOYE.
30 IN DETERMINING THE HOURLY WAGE [OF] AN EMPLOYER IS REQUIRED
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1 TO PAY A TIPPED EMPLOYE, THE AMOUNT PAID SUCH EMPLOYE BY HIS
2 EMPLOYER SHALL BE [DEEMED TO BE INCREASED ON ACCOUNT OF TIPS BY]
3 AN AMOUNT [DETERMINED BY THE EMPLOYER, BUT NOT BY AN AMOUNT IN
4 EXCESS OF FORTY-FIVE PERCENT OF THE APPLICABLE MINIMUM WAGE RATE
5 UPON THE EFFECTIVE DATE OF THIS AMENDMENT: PROVIDED, THAT THE
6 AMOUNT OF THE INCREASE] EQUAL TO: (I) THE CASH WAGE PAID THE
7 EMPLOYE WHICH, FOR THE PURPOSES OF THE DETERMINATION, SHALL BE
8 NOT LESS THAN THE CASH WAGE REQUIRED TO BE PAID THE EMPLOYE ON
9 THE DATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS
10 SUBPARAGRAPH; AND (II) AN ADDITIONAL AMOUNT ON ACCOUNT OF THE
11 TIPS RECEIVED BY THE EMPLOYE, WHICH IS EQUAL TO THE DIFFERENCE
12 BETWEEN THE WAGE SPECIFIED IN SUBPARAGRAPH (I) AND THE WAGE IN
13 EFFECT UNDER SECTION 4 OF THIS ACT. THE ADDITIONAL AMOUNT ON
14 ACCOUNT OF TIPS [DETERMINED BY THE EMPLOYER] MAY NOT EXCEED THE
15 VALUE OF TIPS ACTUALLY RECEIVED BY THE EMPLOYE. THE PREVIOUS
16 SENTENCE SHALL NOT APPLY WITH RESPECT TO ANY TIPPED EMPLOYE
17 UNLESS:
18 (1) SUCH EMPLOYE HAS BEEN INFORMED BY THE EMPLOYER OF THE
19 PROVISIONS OF THIS SUBSECTION;
20 (2) ALL TIPS RECEIVED BY SUCH EMPLOYE HAVE BEEN RETAINED BY
21 THE EMPLOYE AND SHALL NOT BE SURRENDERED TO THE EMPLOYER TO BE
22 USED AS WAGES TO SATISFY THE REQUIREMENT TO PAY THE CURRENT
23 HOURLY MINIMUM RATE IN EFFECT; WHERE THE GRATUITY IS ADDED TO
24 THE CHARGE MADE BY THE ESTABLISHMENT, EITHER BY THE MANAGEMENT,
25 OR BY THE CUSTOMER, THE GRATUITY SHALL BECOME THE PROPERTY OF
26 THE EMPLOYE; EXCEPT THAT THIS SUBSECTION SHALL NOT BE CONSTRUED
27 TO PROHIBIT THE POOLING OF TIPS AMONG EMPLOYES WHO CUSTOMARILY
28 AND REGULARLY RECEIVE TIPS.
29 * * *
30 Section 3 2. This act shall take effect immediately. <--
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