1Amending the act of January 17, 1968 (P.L.11, No.5), entitled
2"An act establishing a fixed minimum wage and overtime rates
3for employes, with certain exceptions; providing for minimum
4rates for learners and apprentices; creating a Minimum Wage
5Advisory Board and defining its powers and duties; conferring
6powers and imposing duties upon the Department of Labor and
7Industry; imposing duties on employers; and providing
8penalties," further providing for definitions, for minimum
9wages and for civil actions.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Section 3(d) of the act of January 17, 1968
13(P.L.11, No.5), known as The Minimum Wage Act of 1968, amended
14July 9, 2006 (P.L.1077, No.112), is amended to read:

15Section 3. Definitions.--As used in this act:

16* * *

17(d) "Wages" mean compensation due to any employe by reason
18of his or her employment, payable in legal tender of the United
19States or checks on banks convertible into cash on demand at
20full face value, subject to such deductions, charges or
21allowances as may be permitted by regulations of the secretary

1under section 9.

2"Wage" paid to any employe includes the reasonable cost, as
3determined by the secretary, to the employer for furnishing such
4employe with board, lodging, or other facilities, if such board,
5lodging, or other facilities are customarily furnished by such
6employer to his or her employes: Provided, That the cost of
7board, lodging, or other facilities shall not be included as a
8part of the wage paid to any employe to the extent it is
9excluded therefrom under the terms of a bona fide collective-
10bargaining agreement applicable to the particular employe:
11Provided, further, That the secretary is authorized to determine
12the fair value of such board, lodging, or other facilities for
13defined classes of employes and in defined areas, based on
14average cost to the employer or to groups of employers similarly
15situated, or average value to groups of employes, or other
16appropriate measures of fair value. Such evaluations, where
17applicable and pertinent, shall be used in lieu of actual
18measure of cost in determining the wage paid to any employe.

19[In determining the hourly wage an employer is required to
20pay a tipped employe, the amount paid such employe by his or her
21employer shall be an amount equal to: (i) the cash wage paid the
22employe which for the purposes of the determination shall be not
23less than the cash wage required to be paid the employe on the
24date immediately prior to the effective date of this
25subparagraph; and (ii) an additional amount on account of the
26tips received by the employe which is equal to the difference
27between the wage specified in subparagraph (i) and the wage in
28effect under section 4 of this act. The additional amount on
29account of tips may not exceed the value of tips actually
30received by the employe. The previous sentence shall not apply

1with respect to any tipped employe unless:

2(1) Such employe has been informed by the employer of the
3provisions of this subsection;

4(2) All tips received by such employe have been retained by
5the employe and shall not be surrendered to the employer to be
6used as wages to satisfy the requirement to pay the current
7hourly minimum rate in effect; where the gratuity is added to
8the charge made by the establishment, either by the management,
9or by the customer, the gratuity shall become the property of
10the employe; except that this subsection shall not be construed
11to prohibit the pooling of tips among employes who customarily
12and regularly receive tips.] An employer shall pay a tipped 
13employe the minimum wage under section 4(a).

14* * *

15Section 2. Section 4(a) of the act, amended July 5, 2012
16(P.L.987, No.109), is amended to read:

17Section 4. Minimum Wages.--Except as may otherwise be
18provided under this act:

19(a) Every employer shall pay to each of his or her employes
20wages for all hours worked at a rate of not less than:

21(1) Two dollars sixty-five cents ($2.65) an hour upon the
22effective date of this amendment.

23(2) Two dollars ninety cents ($2.90) an hour during the year
24beginning January 1, 1979.

25(3) Three dollars ten cents ($3.10) an hour during the year
26beginning January 1, 1980.

27(4) Three dollars thirty-five cents ($3.35) an hour after
28December 31, 1980.

29(5) Three dollars seventy cents ($3.70) an hour beginning
30February 1, 1989.

1(6) Five dollars fifteen cents ($5.15) an hour beginning
2September 1, 1997.

3(7) Six dollars twenty-five cents ($6.25) an hour beginning
4January 1, 2007.

5(8) Seven dollars fifteen cents ($7.15) an hour beginning
6July 1, 2007.

7(9) Twelve dollars ($12.00) an hour beginning thirty days
8after effective date of this paragraph.

9(10) One year after the effective date of paragraph (9), and
10each year thereafter, the secretary shall determine the minimum
11wage to be in effect for the subsequent one-year period by
12taking the previous year's minimum wage and increasing it by the
13annual percentage increase in the Consumer Price Index for all
14Urban Consumers (CPI-U), or its successor publication, for the
15Pennsylvania, New Jersey, Delaware and Maryland area, and
16rounding that amount to the next highest multiple of five cents
17($0.05).

18* * *

19Section 3. Section 13 of the act is amended to read:

20Section 13. Civil Actions.--If any employe is paid by his or
21her employer less than the minimum wages provided by section 4
22of this act or by any regulation issued thereunder, such worker
23may recover in a civil action treble the full amount of such
24minimum wage less any amount actually paid to the worker by the
25employer, together with costs and such reasonable attorney's
26fees as may be allowed by the court, and any agreement between
27the employer and the worker to work for less than such minimum
28wage shall be no defense to such action. At the request of any
29employe paid less than the minimum wage to which such employe
30was entitled under this act and regulations issued thereunder,

1the secretary may take an assignment of such wage claim, in
2trust for the assigning worker and may bring any legal action
3necessary to collect such claim, and the employer shall be
4required to pay the cost and such reasonable attorney's fees as
5may be allowed by the court.

6Section 4. This act shall take effect in 60 days.