PRINTER'S NO. 4 PRINTER'S NO. 927
No. 2 Session of 1989
INTRODUCED BY COHEN, BELFANTI, DeLUCA, MANDERINO, DeWEESE, FEE,
DOMBROWSKI, KUKOVICH, JOSEPHS, LETTERMAN, RYBAK, KOSINSKI,
STABACK, MRKONIC, HAYDEN, YANDRISEVITS, BLAUM, PETRONE,
COWELL, TIGUE, LaGROTTA, LEVDANSKY, MICHLOVIC, LUCYK,
McNALLY, CAWLEY, KAISER, DALEY, HUGHES, FREEMAN, MILLER,
WILLIAMS, MELIO, COLAFELLA, RITTER, EVANS, GIGLIOTTI,
PISTELLA, PRESTON, KASUNIC, HARPER, BELARDI, LAUGHLIN, ACOSTA
AND PRESSMANN, JANUARY 18, 1989
AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 14, 1989
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 defining "EMPLOYER" AND "wages"; and <--
9 increasing the minimum wage; AND ALLOWING COLLECTIVE <--
10 BARGAINING AGREEMENTS TO PROVIDE FOR OVERTIME.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 3(d) AND (G) of the act of January 17, <--
14 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968,
15 amended December 15, 1988 (P.L.1232, No.150), is ARE amended to <--
16 read:
17 Section 3. Definitions.--As used in this act:
18 * * *
1 (d) "Wages" mean compensation due to any employe by reason
2 of his employment, payable in legal tender of the United States
3 or checks on banks convertible into cash on demand at full face
4 value, subject to such deductions, charges or allowances as may
5 be permitted by regulations of the secretary under section 9.
6 "Wage" paid to any employe includes the reasonable cost, as
7 determined by the secretary, to the employer for furnishing such
8 employe with board, lodging, or other facilities, if such board,
9 lodging, or other facilities are customarily furnished by such
10 employer to his employes: Provided, That the cost of board,
11 lodging, or other facilities shall not be included as a part of
12 the wage paid to any employe to the extent it is excluded
13 therefrom under the terms of a bona fide collective-bargaining
14 agreement applicable to the particular employe: Provided,
15 further, That the secretary is authorized to determine the fair
16 value of such board, lodging, or other facilities for defined
17 classes of employes and in defined areas, based on average cost
18 to the employer or to groups of employers similarly situated, or
19 average value to groups of employes, or other appropriate
20 measures of fair value. Such evaluations, where applicable and
21 pertinent, shall be used in lieu of actual measure of cost in
22 determining the wage paid to any employe.
23 In determining the hourly wage of a tipped employe, the
24 amount paid such employe by his employer shall be deemed to be
25 increased on account of tips by an amount determined by the
26 employer, but not by an amount in excess of forty-five percent
27 of the applicable minimum wage rate upon the effective date of
28 this amendment, until January 1, 1980 and thereafter forty
29 percent of the applicable minimum wage rate: Provided, That the
30 amount of the increase on account of tips determined by the
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1 employer may not exceed the value of tips actually received by
2 the employe. The previous sentence shall not apply with respect
3 to any tipped employe unless:
4 (1) Such employe has been informed by the employer of the
5 provisions of this subsection;
6 (2) All tips received by such employe have been retained by
7 the employe and shall not be surrendered to the employer to be
8 used as wages to satisfy the requirement to pay the current
9 hourly minimum rate in effect; where the gratuity is added to
10 the charge made by the establishment, either by the management,
11 or by the customer, the gratuity shall become the property of
12 the employe; except that this subsection shall not be construed
13 to prohibit the pooling of tips among employes who customarily
14 and regularly receive tips.
15 * * *
16 (G) "EMPLOYER" INCLUDES ANY INDIVIDUAL, PARTNERSHIP, <--
17 ASSOCIATION, CORPORATION, BUSINESS TRUST, OR ANY PERSON OR GROUP
18 OF PERSONS ACTING, DIRECTLY OR INDIRECTLY, IN THE INTEREST OF AN
19 EMPLOYER IN RELATION TO ANY EMPLOYE. EMPLOYER SHALL ALSO INCLUDE
20 THE COMMONWEALTH, ITS POLITICAL SUBDIVISIONS AND
21 INSTRUMENTALITIES OF EITHER.
22 * * *
23 Section 2. Section 4(a) and (a.1), (A.1) AND (C) of the act, <--
24 amended OR ADDED DECEMBER 10, 1974 (P.L.916, NO.303) AND <--
25 December 15, 1988 (P.L.1232, No.150), are amended to read: <--
26 Section 4. Minimum Wages.--Except as may otherwise be
27 provided under this act:
28 (a) Every employer shall pay to each of his employes wages
29 for all hours worked at a rate of not less than:
30 (1) Two dollars sixty-five cents ($2.65) an hour upon the
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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] until January 1, 1990.
10 [(a.1) If the minimum wage set forth in the Fair Labor
11 Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.)
12 is increased above three dollars thirty five cents ($3.35) an
13 hour, the minimum wage required under this section shall be
14 increased by the same amounts and effective the same date as the
15 increases under the Fair Labor Standards Act and the provisions
16 of subsection (a) are suspended to the extent they differ from
17 those set forth under the Fair Labor Standards Act.]
18 (6) Four dollars twenty-five cents ($4.25) an hour beginning
19 January 1, 1990 until January 1, 1991.
20 (7) Four sixty-five cents ($4.65) an hour beginning January
21 1, 1991.
22 (8) Beginning January 1, 1992 and thereafter the minimum
23 wage allowable in this Commonwealth shall be adjusted annually
24 and raised by the same percentage as the increase in the maximum
25 weekly benefit rate, as established by the department pursuant
26 to section 404(e) of the act of December 5, 1936 (2nd Sp.Sess.,
27 1937 P.L.2897, No.1), known as the "Unemployment Compensation
28 Law."
29 * * *
30 (C) EMPLOYES SHALL BE PAID FOR OVERTIME NOT LESS THAN ONE <--
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1 AND ONE-HALF TIMES THE EMPLOYE'S REGULAR RATE AS PRESCRIBED IN
2 REGULATIONS PROMULGATED BY THE SECRETARY: PROVIDED, THAT
3 STUDENTS EMPLOYED IN SEASONAL OCCUPATIONS AS DEFINED AND
4 DELIMITED BY REGULATIONS PROMULGATED BY THE SECRETARY MAY, BY
5 SUCH REGULATIONS, BE EXCLUDED FROM THE OVERTIME PROVISIONS OF
6 THIS ACT: AND PROVIDED FURTHER, THAT THE SECRETARY SHALL
7 PROMULGATE REGULATIONS WITH RESPECT TO OVERTIME SUBJECT TO THE
8 LIMITATIONS THAT NO PAY FOR OVERTIME IN ADDITION TO THE REGULAR
9 RATE SHALL BE REQUIRED EXCEPT FOR HOURS IN EXCESS OF FORTY HOURS
10 IN A WORKWEEK[.]: AND PROVIDED FURTHER, THAT IF AN EMPLOYER IS
11 THE COMMONWEALTH, ITS POLITICAL SUBDIVISIONS AND
12 INSTRUMENTALITIES OF EITHER, EMPLOYE'S COMPENSATORY TIME AS
13 PROVIDED FOR IN A COLLECTIVE BARGAINING AGREEMENT SHALL BE AN
14 ALTERNATIVE TO THE OVERTIME REQUIRED BY THIS SUBSECTION.
15 * * *
16 SECTION 3. SECTION 4(D) OF THE ACT IS AMENDED TO READ:
17 SECTION 4. MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE
18 PROVIDED UNDER THIS ACT:
19 * * *
20 (D) AN EMPLOYE WHOSE EARNING CAPACITY IS IMPAIRED BY
21 PHYSICAL OR MENTAL DEFICIENCY OR INJURY MAY BE PAID LESS THAN
22 THE APPLICABLE MINIMUM WAGE IF EITHER A LICENSE SPECIFYING A
23 WAGE RATE COMMENSURATE WITH THE EMPLOYE'S PRODUCTIVE CAPACITY
24 HAS BEEN OBTAINED BY THE EMPLOYER FROM THE SECRETARY OR A
25 FEDERAL CERTIFICATE IS OBTAINED UNDER SECTION 14(C) OF THE FAIR
26 LABOR STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET
27 SEQ.). SUCH LICENSE SHALL BE GRANTED ONLY UPON JOINT APPLICATION
28 OF EMPLOYER AND EMPLOYE.
29 SECTION 4. SECTION 5(B) OF THE ACT, AMENDED DECEMBER 10,
30 1974 (P.L.916, NO.303), IS AMENDED TO READ:
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1 SECTION 5. EXEMPTIONS.--* * *
2 (B) EMPLOYMENT IN THE FOLLOWING CLASSIFICATIONS SHALL BE
3 EXEMPT FROM THE OVERTIME PROVISIONS OF THIS ACT:
4 (1) SEAMAN;
5 (2) ANY SALESMAN, PARTSMAN, OR MECHANIC PRIMARILY ENGAGED IN
6 SELLING AND SERVICING AUTOMOBILES, TRAILERS, TRUCKS, FARM
7 IMPLEMENTS, OR AIRCRAFT IF EMPLOYED BY A NONMANUFACTURING
8 ESTABLISHMENT PRIMARILY ENGAGED IN THE BUSINESS OF SELLING SUCH
9 VEHICLES TO ULTIMATE PURCHASERS;
10 (3) ANY DRIVER EMPLOYED BY AN EMPLOYER ENGAGED IN THE
11 BUSINESS OF OPERATING TAXICABS;
12 (4) ANY EMPLOYE EMPLOYED AS AN ANNOUNCER, NEWS EDITOR, OR
13 CHIEF ENGINEER BY A RADIO OR TELEVISION STATION, THE MAJOR
14 STUDIO OF WHICH IS LOCATED (I) IN A CITY OR TOWN OF ONE HUNDRED
15 THOUSAND POPULATION OR LESS, ACCORDING TO THE LATEST AVAILABLE
16 DECENNIAL CENSUS FIGURES AS COMPILED BY THE BUREAU OF THE
17 CENSUS, EXCEPT WHERE SUCH CITY OR TOWN IS PART OF A STANDARD
18 METROPOLITAN STATISTICAL AREA, AS DEFINED AND DESIGNATED BY THE
19 BUREAU OF THE BUDGET, WHICH HAS A TOTAL POPULATION IN EXCESS OF
20 ONE HUNDRED THOUSAND, OR (II) IN A CITY OR TOWN OF TWENTY-FIVE
21 THOUSAND POPULATION OR LESS, WHICH IS PART OF SUCH AN AREA BUT
22 IS AT LEAST FORTY AIRLINE MILES FROM THE PRINCIPAL CITY IN SUCH
23 AREA;
24 (5) ANY EMPLOYE ENGAGED IN THE PROCESSING OF MAPLE SAP INTO
25 SUGAR (OTHER THAN REFINED SUGAR) OR SYRUP;
26 (6) EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A MOTION PICTURE
27 THEATRE[.];
28 (7) ANY EMPLOYE OF A MOTOR CARRIER WITH RESPECT TO WHOM THE
29 FEDERAL SECRETARY OF TRANSPORTATION HAS POWER TO ESTABLISH
30 QUALIFICATIONS AND MAXIMUM HOURS OF SERVICE UNDER 49 U.S.C. §
19890H0002B0927 - 6 -
1 3102(B)(1) (RELATING TO REQUIREMENTS FOR QUALIFICATIONS, HOURS
2 OF SERVICE, SAFETY AND EQUIPMENT STANDARDS).
3 * * *
4 Section 3 5. This act shall take effect immediately. <--
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