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 and for rate of
9minimum wages; and providing for reporting by the department.

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.

19In determining the hourly wage an employer is required to pay
20a 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] under section 4 of this act; and (ii) an
26additional amount on account of the tips received by the employe
27which is equal to the difference between the wage specified in
28subparagraph (i) and the wage in effect under section 4 of this
29act. The additional amount on account of tips may not exceed the
30value of tips actually received by the employe. The previous

1sentence shall not apply with respect to any tipped employe
2unless:

3(1) Such employe has been informed by the employer of the
4provisions of this subsection;

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

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) For a tipped employe who customarily and regularly
8receives tips, but who actually receives in tips an amount equal
9to the rate otherwise applicable under this section:

10(i) three dollars eighty-three cents ($3.83) an hour in cash
11wages beginning on the effective date of this paragraph;

12(ii) four dollars eighty-three cents ($4.83) an hour in cash
13wages beginning January 1, 2015; and

14(iii) seventy percent (70%) of the rate otherwise applicable
15under this section or the Fair Labor Standards Act of 1938 (52
16Stat. 1060, 29 U.S.C. § 201 et seq.), whichever is greater, an
17hour in cash wages beginning January 1, 2016.

18* * *

19Section 3. The act is amended by adding a section to read:

20Section 13.1. Reporting by Department.

21The department shall collect information of the number of
22employers who violate the provisions of this act, including the
23amount of fines imposed for violations, and shall publish the
24information on the department's publicly accessible Internet
25website. The department shall update the information every six
26months.

27Section 4. Any and all regulations are hereby abrogated to
28the extent of any inconsistency with this act.

29Section 5. This act shall take effect immediately.