HOUSE AMENDED
PRIOR PRINTER'S NOS. 1492, 1885, 1887, PRINTER'S NO. 1957
1913
No. 1090 Session of 2006
INTRODUCED BY TARTAGLIONE, HUGHES, COSTA, FERLO, FONTANA, FUMO,
KASUNIC, KITCHEN, LAVALLE, LOGAN, MELLOW, MUSTO, O'PAKE,
STACK, STOUT, WASHINGTON, A. WILLIAMS, C. WILLIAMS, WOZNIAK,
BOSCOLA, BROWNE, CONTI, PILEGGI, RAFFERTY AND TOMLINSON,
JANUARY 31, 2006
AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 27, 2006
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," giving effect to Federal changes in wage rates;
9 providing for preemption; and making editorial changes.
10 AMENDING THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), ENTITLED <--
11 "AN ACT ESTABLISHING A FIXED MINIMUM WAGE AND OVERTIME RATES
12 FOR EMPLOYES, WITH CERTAIN EXCEPTIONS; PROVIDING FOR MINIMUM
13 RATES FOR LEARNERS AND APPRENTICES; CREATING A MINIMUM WAGE
14 ADVISORY BOARD AND DEFINING ITS POWERS AND DUTIES; CONFERRING
15 POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF LABOR AND
16 INDUSTRY; IMPOSING DUTIES ON EMPLOYERS; AND PROVIDING
17 PENALTIES," GIVING EFFECT TO FEDERAL CHANGES IN WAGE RATES;
18 PROVIDING FOR PREEMPTION; AND MAKING EDITORIAL CHANGES.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 3 of the act of January 17, 1968 (P.L.11, <--
22 No.5), known as The Minimum Wage Act of 1968, amended December
23 15, 1988 (P.L.1232, No.150), and December 21, 1998 (P.L.1290,
1 No.168), is amended to read:
2 Section 3. Definitions.--As used in this act:
3 (a) "Secretary" means the Secretary of Labor and Industry.
4 (b) "Department" means the Department of Labor and Industry.
5 (c) "Board" means the Minimum Wage Advisory Board created by
6 this act.
7 (d) "Wages" mean compensation due to any employe by reason
8 of his or her employment, payable in legal tender of the United
9 States or checks on banks convertible into cash on demand at
10 full face value, subject to such deductions, charges or
11 allowances as may be permitted by regulations of the secretary
12 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 or her employes: Provided, That the cost of
18 board, lodging, or other facilities shall not be included as a
19 part of the wage paid to any employe to the extent it is
20 excluded therefrom under the terms of a bona fide collective-
21 bargaining agreement applicable to the particular employe:
22 Provided, further, That the secretary is authorized to determine
23 the fair value of such board, lodging, or other facilities for
24 defined classes of employes and in defined areas, based on
25 average cost to the employer or to groups of employers similarly
26 situated, or average value to groups of employes, or other
27 appropriate measures of fair value. Such evaluations, where
28 applicable and pertinent, shall be used in lieu of actual
29 measure of cost in determining the wage paid to any employe.
30 In determining the hourly wage an employer is required to pay
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1 a tipped employe, the amount paid such employe by his or her
2 employer shall be an amount equal to: (i) the cash wage paid the
3 employe which for the purposes of the determination shall be not
4 less than the cash wage required to be paid the employe on the
5 date immediately prior to the effective date of this
6 subparagraph; and (ii) an additional amount on account of the
7 tips received by the employe which is equal to the difference
8 between the wage specified in subparagraph (i) and the wage in
9 effect under section 4 of this act. The additional amount on
10 account of tips may not exceed the value of tips actually
11 received by the employe. The previous sentence shall not apply
12 with respect to any tipped employe unless:
13 (1) Such employe has been informed by the employer of the
14 provisions of this subsection;
15 (2) All tips received by such employe have been retained by
16 the employe and shall not be surrendered to the employer to be
17 used as wages to satisfy the requirement to pay the current
18 hourly minimum rate in effect; where the gratuity is added to
19 the charge made by the establishment, either by the management,
20 or by the customer, the gratuity shall become the property of
21 the employe; except that this subsection shall not be construed
22 to prohibit the pooling of tips among employes who customarily
23 and regularly receive tips.
24 (e) "Occupation" means any industry, trade, business,
25 service, or employment or class or group thereof in which
26 individuals are gainfully employed.
27 (f) "Employe" includes to suffer or to permit to work.
28 (g) "Employer" includes any individual, partnership,
29 association, corporation, business trust, or any person or group
30 of persons acting, directly or indirectly, in the interest of an
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1 employer in relation to any employe.
2 (h) "Employe" includes any individual employed by an
3 employer.
4 (i) "Gratuities" means voluntary, monetary contributions
5 received by an employe from a guest, patron or customer for
6 services rendered.
7 Section 2. Section 4 of the act, amended December 10, 1974
8 (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15,
9 1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is
10 amended to read:
11 Section 4. Minimum Wages.--Except as may otherwise be
12 provided under this act:
13 (a) Every employer shall pay to each of his or her employes
14 wages for all hours worked at a rate of not less than:
15 (1) Two dollars sixty-five cents ($2.65) an hour upon the
16 effective date of this amendment.
17 (2) Two dollars ninety cents ($2.90) an hour during the year
18 beginning January 1, 1979.
19 (3) Three dollars ten cents ($3.10) an hour during the year
20 beginning January 1, 1980.
21 (4) Three dollars thirty-five cents ($3.35) an hour after
22 December 31, 1980.
23 (5) Three dollars seventy cents ($3.70) an hour beginning
24 February 1, 1989[, and thereafter].
25 (6) Five dollars fifteen cents ($5.15) an hour beginning
26 September 1, 1997.
27 (7) Six dollars twenty-five cents ($6.25) an hour beginning
28 January 1, 2007.
29 (8) Seven dollars fifteen cents ($7.15) an hour beginning
30 July 1, 2007.
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1 (a.1) If the minimum wage set forth in the Fair Labor
2 Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.)
3 is increased above [three dollars thirty-five cents ($3.35) an
4 hour] the minimum wage required under this section, the minimum
5 wage required under this section shall be increased by the same
6 amounts and effective the same date as the increases under the
7 Fair Labor Standards Act, and the provisions of subsection (a)
8 are suspended to the extent they differ from those set forth
9 under the Fair Labor Standards Act.
10 (b) The secretary, to the extent necessary to prevent
11 curtailment of employment opportunities, shall by regulations
12 provide for the employment of learners and students, under
13 special certificates at wages lower than the minimum wage
14 applicable under this section, and subject to such limitations
15 as to number, proportion and length of service as the secretary
16 shall prescribe: Provided, That the minimum wage prescribed
17 under this subsection (b) shall not be less than eighty-five
18 percent of the otherwise applicable wage rate in effect under
19 section 4. A special certificate issued under this subsection
20 shall provide that for six or less students for whom it is
21 issued shall, except during vacation periods, be employed on a
22 part-time basis and not in excess of twenty hours in any
23 workweek at a sub-minimum rate.
24 In the case of an employer who intends to employ seven or
25 more students, at a sub-minimum rate, the secretary may issue a
26 special certificate only if the employer certifies to the
27 secretary that employment of such students will not create a
28 substantial probability of reducing the full-time employment
29 opportunities for other workers.
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.
11 (d) An employe whose earning capacity is impaired by
12 physical or mental deficiency or injury may be paid less than
13 the applicable minimum wage if either a license specifying a
14 wage rate commensurate with the employe's productive capacity
15 has been obtained by the employer from the secretary or a
16 Federal certificate is obtained under section 14(c) of the Fair
17 Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et
18 seq.). A license obtained from the secretary shall be granted
19 only upon joint application of employer and employe.
20 (e) In lieu of the minimum wage prescribed in subsection (a)
21 and notwithstanding subsections (b) and (d), an employer may,
22 during the first sixty calendar days when an employe under the
23 age of twenty years is initially employed, pay the employe
24 training wages at a rate of not less than the minimum wage set
25 forth in section 6(a) of the Fair Labor Standards Act (29 U.S.C.
26 § 206(a)). A person employed at the training wage under this
27 subsection shall be informed of the amount of the training wage
28 and the right to receive the full minimum wage, or a higher
29 wage, upon completion of the training period. No employer may
30 take any action to displace existing employes, including partial
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1 displacements such as reduction in the hours, wages or
2 employment benefits of existing employes, for purposes of hiring
3 individuals at the training wage authorized by this subsection.
4 Section 3. Section 5 of the act, amended December 10, 1974
5 (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15,
6 1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is
7 amended to read:
8 Section 5. Exemptions.--(a) Employment in the following
9 classifications shall be exempt from both the minimum wage and
10 overtime provisions of this act:
11 (1) Labor on a farm;
12 (2) Domestic services in or about the private home of the
13 employer;
14 (3) Delivery of newspapers to the consumer;
15 (4) In connection with the publication of any weekly,
16 semiweekly, or daily newspaper with a circulation of less than
17 four thousand, the major part of which circulation is within the
18 county where published or counties contiguous thereto;
19 (5) In a bona fide executive, administrative, or
20 professional capacity (including any employe employed in the
21 capacity of academic administrative personnel or teacher in
22 elementary or secondary schools) or in the capacity of outside
23 salesman (as such terms are defined and delimited from time to
24 time by regulations of the secretary, except that an employe of
25 a retail or service establishment shall not be excluded from the
26 definition of employe employed in a bona fide executive or
27 administrative capacity because of the number of hours in his or
28 her workweek which he or she devotes to activities not directly
29 or closely related to the performance of executive
30 administrative activities, if less than forty percent of his or
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1 her hours worked in the workweek are devoted to such
2 activities);
3 (6) In the activities of an educational, charitable,
4 religious or nonprofit organization where the employer-employe
5 relationship does not in fact exist or where the services are
6 rendered to such organization gratuitously;
7 (7) In seasonal employment, if the employe is under eighteen
8 years of age, or if a student under twenty-four years of age, by
9 a nonprofit health or welfare agency engaged in activities
10 dealing with handicapped or exceptional children or by a
11 nonprofit day or resident seasonal recreational camp for campers
12 under the age of eighteen years, which operates for a period of
13 less than three months in any one year;
14 (9) In employment by an establishment which is a public
15 amusement or recreational establishment, organized camp, or
16 religious or nonprofit educational conference center, if (i) it
17 does not operate for more than seven months in any calendar
18 year, or (ii) during the preceding calendar year, its average
19 receipts for any six months of such year were not more than
20 thirty-three and one-third percent of its average receipts for
21 the other six months of such year;
22 (10) Golf caddy;
23 (11) In employment as a switchboard operator employed by an
24 independently owned public telephone company which has not more
25 than seven hundred and fifty stations;
26 (12) Employes not subject to civil service laws who hold
27 elective office or are on the personal staff of such an
28 officeholder, are immediate advisers to him or her, or are
29 appointed by him or her to serve on a policy-making level.
30 (b) Employment in the following classifications shall be
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1 exempt from the overtime provisions of this act:
2 (1) Seaman;
3 (2) Any salesman, partsman, or mechanic primarily engaged in
4 selling and servicing automobiles, trailers, trucks, farm
5 implements, or aircraft if employed by a nonmanufacturing
6 establishment primarily engaged in the business of selling such
7 vehicles to ultimate purchasers;
8 (3) Any driver employed by an employer engaged in the
9 business of operating taxicabs;
10 (4) Any employe employed as an announcer, news editor, or
11 chief engineer by a radio or television station, the major
12 studio of which is located (i) in a city or town of one hundred
13 thousand population or less, according to the latest available
14 decennial census figures as compiled by the Bureau of the
15 Census, except where such city or town is part of a standard
16 metropolitan statistical area, as defined and designated by the
17 Bureau of the Budget, which has a total population in excess of
18 one hundred thousand, or (ii) in a city or town of twenty-five
19 thousand population or less, which is part of such an area but
20 is at least forty airline miles from the principal city in such
21 area;
22 (5) Any employe engaged in the processing of maple sap into
23 sugar (other than refined sugar) or syrup;
24 (6) Employment by an establishment which is a motion picture
25 theatre;
26 (7) Any employe of a motor carrier with respect to whom the
27 Federal Secretary of Transportation has power to establish
28 qualifications and maximum hours of service under 49 U.S.C. §
29 3102(b)(1) and (2) (relating to requirements for qualifications,
30 hours of service, safety and equipment standards).
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1 (c) (1) Notwithstanding the provisions of subsection (a)(7)
2 and (8), an employer unless otherwise exempt from the minimum
3 wage provisions of section 4(a)(6) whose employe complement is
4 composed of the equivalent of ten full-time employes to be
5 calculated on a forty-hour workweek shall pay:
6 (i) Five dollars sixty-five cents ($5.65) an hour beginning
7 January 1, 2007.
8 (ii) Six dollars sixty-five cents ($6.65) an hour beginning
9 July 1, 2007.
10 (2) Such employer shall pay the full amount of the minimum
11 wage under section 4(a)(8) beginning July 1, 2008.
12 Section 4. Sections 6, 7, 8 and 9 of the act are amended to
13 read:
14 Section 6. Minimum Wage Advisory Board.--(a) There is
15 hereby created in the Department of Labor and Industry a Minimum
16 Wage Advisory Board consisting of nine members to be appointed
17 by the secretary to assist him or her in carrying out his or her
18 duties under this act, and for the purpose of conducting public
19 hearings at the request of the secretary in order to recommend
20 rules and regulations for the occupations covered within this
21 act.
22 (b) Of the nine members, three shall be representatives of
23 an established recognized association of labor organizations,
24 three shall be representatives of an established recognized
25 association of employers and three shall be members from the
26 general public. The Secretary of Labor and Industry or his or
27 her designated representative shall be chairman of the board.
28 (c) Each member of the board shall receive compensation of
29 thirty dollars ($30) per day plus necessary expenses, for each
30 day actually spent in the performance of his or her duties. No
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1 employe of the Commonwealth shall receive any additional
2 compensation or expenses on account of his or her services under
3 this act.
4 (d) At least ten days' public notice shall be given in the
5 manner prescribed by the board prior to any public hearing of
6 the board. Five members of the board shall constitute a quorum.
7 (e) The board shall have the power and duty to:
8 (1) consult with the secretary concerning any matter arising
9 under the administration of this act and advise and assist him
10 or her in carrying out the duties prescribed for him or her by
11 section 8 of this act;
12 (2) conduct public hearings at the request of the secretary
13 in order to develop rules and regulations in accordance with
14 section 9 of this act, in which hearings due process of law
15 shall be observed and any person may appear and be heard or file
16 statements in support of his or her position;
17 (3) the board shall submit its report including
18 recommendations for the promulgation of rules and regulations to
19 the secretary, who shall within thirty days thereafter accept
20 such report or refer it to the board for further consideration
21 and consultation. If the report is referred to the board for
22 further consideration, the secretary shall, in consultation with
23 the board, modify, amend, or otherwise act upon such report
24 within sixty days thereafter. Rules and regulations developed
25 and promulgated hereunder shall be published and any person
26 aggrieved thereby, shall have a right of review as set forth in
27 section 10 of this act.
28 Section 7. Investigations.--(a) The secretary or his or her
29 representative shall have authority to investigate and ascertain
30 the wages of persons employed in any occupation in the
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1 Commonwealth; enter and inspect the place of business or
2 employment of any employer of employes in any occupation in the
3 Commonwealth at any reasonable time, for the purpose of
4 examining and inspecting any records of any such employer that
5 in any way relate to wages, hours, or other conditions of
6 employment of any such employes; copy any or all of such records
7 as [he] the secretary or [his] an authorized representative may
8 deem necessary or appropriate; require from such employer full
9 and accurate statements in writing, at such times as the
10 secretary may deem necessary, of the wages paid to all employes
11 in his or her employment; and interrogate such persons for the
12 purpose of ascertaining whether the provisions of this act and
13 the regulations issued thereunder have been and are being
14 complied with.
15 Section 8. Duty of Employer.--Every employer of employes
16 shall keep a true and accurate record of the hours worked by
17 each employe and the wages paid to each, and shall furnish to
18 the secretary or his or her duly authorized representative, upon
19 demand, a sworn statement of the same. Such records shall be
20 open to inspection by any duly authorized representative of the
21 secretary at any reasonable time and shall be preserved for a
22 period of three years. Every employer subject to this act shall
23 keep a summary of this act and any regulations issued thereunder
24 applicable to him or her, posted in a conspicuous place where
25 employes normally pass and can read it. Employers shall, upon
26 request, be furnished copies of such summaries without charge.
27 Employers shall permit any duly authorized representative of the
28 secretary to interrogate any employe in the place of employment
29 and during work hours with respect to the wages paid to and the
30 hours worked by such employe or other employes.
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1 Section 9. Enforcement; Rules and Regulations.--The
2 secretary shall enforce this act. [He] The secretary shall make
3 and, from time to time, revise regulations, with the assistance
4 of the board, when requested by [him] the secretary, which shall
5 be deemed appropriate to carry out the purposes of this act and
6 to safeguard the minimum wage rates thereby established. Such
7 regulations may include, but are not limited to, regulations
8 defining and governing bona fide executive, administrative, or
9 professional employes and outside [salesmen] sales persons,
10 learners and apprentices, their number, proportion, length of
11 learning period, and other working conditions; handicapped
12 workers; part-time pay; overtime standards; bonuses; allowances
13 for board, lodging, apparel, or other facilities or services
14 customarily furnished by employers to employes; allowances for
15 gratuities; or allowances for such other special conditions or
16 circumstances which may be incidental to a particular employer-
17 employe relationship.
18 Section 5. Section 12 of the act, amended December 10, 1974
19 (P.L.916, No.303), is amended to read:
20 Section 12. Penalties.--(a) Any employer and his or her
21 agent, or the officer or agent of any corporation, who
22 discharges or in any other manner discriminates against any
23 employe because such employe has testified or is about to
24 testify before the secretary or his or her representative in any
25 investigation or proceeding under or related to this act, or
26 because such employer believes that said employe may so testify
27 shall, upon conviction thereof in a summary proceeding, be
28 sentenced to pay a fine of not less than five hundred dollars
29 ($500) nor more than one thousand dollars ($1,000), and in
30 default of the payment of such fine and costs, shall be
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1 sentenced to imprisonment for not less than ten days nor more
2 than ninety days.
3 (b) Any employer or the officer or agent of any corporation
4 who pays or agrees to pay any employe less than the rates
5 applicable to such employe under this act shall, upon conviction
6 thereof in a summary proceeding, be sentenced to pay a fine of
7 not less than seventy-five dollars ($75) nor more than three
8 hundred dollars ($300) or to undergo imprisonment of not less
9 than ten nor more than sixty days, or both. Each week in which
10 such employe is paid less than the rate applicable to him or her
11 under this act and for each employe who is paid less than the
12 prescribed rate, a separate offense shall be deemed to occur.
13 Any agreement between the employer and the employe to work for
14 less than the applicable wage rate shall be no defense to action
15 by the Commonwealth under this section.
16 (c) Any employer or the officer or agent of any corporation
17 who violates any other provision of this act or of any
18 regulation issued thereunder shall, upon conviction thereof in a
19 summary proceeding, be sentenced to pay a fine of not less than
20 one hundred dollars ($100) nor more than five hundred dollars
21 ($500), and each day of such failure to comply with this act or
22 regulation, shall constitute a separate offense.
23 Section 6. The act is amended by adding a section to read:
24 Section 14.1. Preemption.--(a) Except as set forth in
25 subsection (b), this act shall preempt and supersede any local
26 ordinance or rule concerning the subject matter of this act.
27 (b) This section does not prohibit local regulation pursuant
28 to an ordinance which was adopted by a municipality prior to
29 January 1, 2006, and which remained in effect on January 1,
30 2006.
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1 Section 7. All acts and parts of acts are repealed insofar
2 as they are inconsistent with the addition of section 14.1 of
3 the act.
4 Section 8. This act shall apply as follows:
5 (1) The addition of section 14.1 of the act shall not
6 invalidate any ordinance, charter provision, resolution, rule
7 or regulation in effect on the effective date of this
8 section.
9 (2) The following provisions shall apply to contracts
10 entered into or renewed on or after the effective date of
11 this section:
12 (i) The addition of section 14.1 of the act.
13 (ii) Section 7 of this act.
14 Section 9. This act shall take effect immediately.
15 SECTION 1. SECTION 3 OF THE ACT OF JANUARY 17, 1968 (P.L.11, <--
16 NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, AMENDED DECEMBER
17 15, 1988 (P.L.1232, NO.150), AND DECEMBER 21, 1998 (P.L.1290,
18 NO.168), IS AMENDED TO READ:
19 SECTION 3. DEFINITIONS.--AS USED IN THIS ACT:
20 (A) "SECRETARY" MEANS THE SECRETARY OF LABOR AND INDUSTRY.
21 (B) "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR AND INDUSTRY.
22 (C) "BOARD" MEANS THE MINIMUM WAGE ADVISORY BOARD CREATED BY
23 THIS ACT.
24 (D) "WAGES" MEAN COMPENSATION DUE TO ANY EMPLOYE BY REASON
25 OF HIS OR HER EMPLOYMENT, PAYABLE IN LEGAL TENDER OF THE UNITED
26 STATES OR CHECKS ON BANKS CONVERTIBLE INTO CASH ON DEMAND AT
27 FULL FACE VALUE, SUBJECT TO SUCH DEDUCTIONS, CHARGES OR
28 ALLOWANCES AS MAY BE PERMITTED BY REGULATIONS OF THE SECRETARY
29 UNDER SECTION 9.
30 "WAGE" PAID TO ANY EMPLOYE INCLUDES THE REASONABLE COST, AS
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1 DETERMINED BY THE SECRETARY, TO THE EMPLOYER FOR FURNISHING SUCH
2 EMPLOYE WITH BOARD, LODGING, OR OTHER FACILITIES, IF SUCH BOARD,
3 LODGING, OR OTHER FACILITIES ARE CUSTOMARILY FURNISHED BY SUCH
4 EMPLOYER TO HIS OR HER EMPLOYES: PROVIDED, THAT THE COST OF
5 BOARD, LODGING, OR OTHER FACILITIES SHALL NOT BE INCLUDED AS A
6 PART OF THE WAGE PAID TO ANY EMPLOYE TO THE EXTENT IT IS
7 EXCLUDED THEREFROM UNDER THE TERMS OF A BONA FIDE COLLECTIVE-
8 BARGAINING AGREEMENT APPLICABLE TO THE PARTICULAR EMPLOYE:
9 PROVIDED, FURTHER, THAT THE SECRETARY IS AUTHORIZED TO DETERMINE
10 THE FAIR VALUE OF SUCH BOARD, LODGING, OR OTHER FACILITIES FOR
11 DEFINED CLASSES OF EMPLOYES AND IN DEFINED AREAS, BASED ON
12 AVERAGE COST TO THE EMPLOYER OR TO GROUPS OF EMPLOYERS SIMILARLY
13 SITUATED, OR AVERAGE VALUE TO GROUPS OF EMPLOYES, OR OTHER
14 APPROPRIATE MEASURES OF FAIR VALUE. SUCH EVALUATIONS, WHERE
15 APPLICABLE AND PERTINENT, SHALL BE USED IN LIEU OF ACTUAL
16 MEASURE OF COST IN DETERMINING THE WAGE PAID TO ANY EMPLOYE.
17 IN DETERMINING THE HOURLY WAGE AN EMPLOYER IS REQUIRED TO PAY
18 A TIPPED EMPLOYE, THE AMOUNT PAID SUCH EMPLOYE BY HIS OR HER
19 EMPLOYER SHALL BE AN AMOUNT EQUAL TO: (I) THE CASH WAGE PAID THE
20 EMPLOYE WHICH FOR THE PURPOSES OF THE DETERMINATION SHALL BE NOT
21 LESS THAN THE CASH WAGE REQUIRED TO BE PAID THE EMPLOYE ON THE
22 DATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS
23 SUBPARAGRAPH; AND (II) AN ADDITIONAL AMOUNT ON ACCOUNT OF THE
24 TIPS RECEIVED BY THE EMPLOYE WHICH IS EQUAL TO THE DIFFERENCE
25 BETWEEN THE WAGE SPECIFIED IN SUBPARAGRAPH (I) AND THE WAGE IN
26 EFFECT UNDER SECTION 4 OF THIS ACT. THE ADDITIONAL AMOUNT ON
27 ACCOUNT OF TIPS MAY NOT EXCEED THE VALUE OF TIPS ACTUALLY
28 RECEIVED BY THE EMPLOYE. THE PREVIOUS SENTENCE SHALL NOT APPLY
29 WITH RESPECT TO ANY TIPPED EMPLOYE UNLESS:
30 (1) SUCH EMPLOYE HAS BEEN INFORMED BY THE EMPLOYER OF THE
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1 PROVISIONS OF THIS SUBSECTION;
2 (2) ALL TIPS RECEIVED BY SUCH EMPLOYE HAVE BEEN RETAINED BY
3 THE EMPLOYE AND SHALL NOT BE SURRENDERED TO THE EMPLOYER TO BE
4 USED AS WAGES TO SATISFY THE REQUIREMENT TO PAY THE CURRENT
5 HOURLY MINIMUM RATE IN EFFECT; WHERE THE GRATUITY IS ADDED TO
6 THE CHARGE MADE BY THE ESTABLISHMENT, EITHER BY THE MANAGEMENT,
7 OR BY THE CUSTOMER, THE GRATUITY SHALL BECOME THE PROPERTY OF
8 THE EMPLOYE; EXCEPT THAT THIS SUBSECTION SHALL NOT BE CONSTRUED
9 TO PROHIBIT THE POOLING OF TIPS AMONG EMPLOYES WHO CUSTOMARILY
10 AND REGULARLY RECEIVE TIPS.
11 (E) "OCCUPATION" MEANS ANY INDUSTRY, TRADE, BUSINESS,
12 SERVICE, OR EMPLOYMENT OR CLASS OR GROUP THEREOF IN WHICH
13 INDIVIDUALS ARE GAINFULLY EMPLOYED.
14 (F) "EMPLOYE" INCLUDES TO SUFFER OR TO PERMIT TO WORK.
15 (G) "EMPLOYER" INCLUDES ANY INDIVIDUAL, PARTNERSHIP,
16 ASSOCIATION, CORPORATION, BUSINESS TRUST, OR ANY PERSON OR GROUP
17 OF PERSONS ACTING, DIRECTLY OR INDIRECTLY, IN THE INTEREST OF AN
18 EMPLOYER IN RELATION TO ANY EMPLOYE.
19 (H) "EMPLOYE" INCLUDES ANY INDIVIDUAL EMPLOYED BY AN
20 EMPLOYER.
21 (I) "GRATUITIES" MEANS VOLUNTARY, MONETARY CONTRIBUTIONS
22 RECEIVED BY AN EMPLOYE FROM A GUEST, PATRON OR CUSTOMER FOR
23 SERVICES RENDERED.
24 SECTION 2. SECTION 4 OF THE ACT, AMENDED DECEMBER 10, 1974
25 (P.L.916, NO.303), JULY 1, 1978 (P.L.735, NO.135), DECEMBER 15,
26 1988 (P.L.1232, NO.150), AND JULY 9, 1990 (P.L.348, NO.79), IS
27 AMENDED TO READ:
28 SECTION 4. MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE
29 PROVIDED UNDER THIS ACT:
30 (A) EVERY EMPLOYER SHALL PAY TO EACH OF HIS OR HER EMPLOYES
20060S1090B1957 - 17 -
1 WAGES FOR ALL HOURS WORKED AT A RATE OF NOT LESS THAN:
2 (1) TWO DOLLARS SIXTY-FIVE CENTS ($2.65) AN HOUR UPON THE
3 EFFECTIVE DATE OF THIS AMENDMENT.
4 (2) TWO DOLLARS NINETY CENTS ($2.90) AN HOUR DURING THE YEAR
5 BEGINNING JANUARY 1, 1979.
6 (3) THREE DOLLARS TEN CENTS ($3.10) AN HOUR DURING THE YEAR
7 BEGINNING JANUARY 1, 1980.
8 (4) THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN HOUR AFTER
9 DECEMBER 31, 1980.
10 (5) THREE DOLLARS SEVENTY CENTS ($3.70) AN HOUR BEGINNING
11 FEBRUARY 1, 1989[, AND THEREAFTER].
12 (6) FIVE DOLLARS FIFTEEN CENTS ($5.15) AN HOUR BEGINNING
13 SEPTEMBER 1, 1997.
14 (7) SIX DOLLARS TWENTY-FIVE CENTS ($6.25) AN HOUR BEGINNING
15 JANUARY 1, 2007.
16 (8) SEVEN DOLLARS FIFTEEN CENTS ($7.15) AN HOUR BEGINNING
17 JULY 1, 2007.
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, THE MINIMUM
22 WAGE REQUIRED UNDER THIS SECTION SHALL BE INCREASED BY THE SAME
23 AMOUNTS AND EFFECTIVE THE SAME DATE AS THE INCREASES UNDER THE
24 FAIR LABOR STANDARDS ACT, AND THE PROVISIONS OF SUBSECTION (A)
25 ARE SUSPENDED TO THE EXTENT THEY DIFFER FROM THOSE SET FORTH
26 UNDER THE FAIR LABOR STANDARDS ACT.
27 (B) THE SECRETARY, TO THE EXTENT NECESSARY TO PREVENT
28 CURTAILMENT OF EMPLOYMENT OPPORTUNITIES, SHALL BY REGULATIONS
29 PROVIDE FOR THE EMPLOYMENT OF LEARNERS AND STUDENTS, UNDER
30 SPECIAL CERTIFICATES AT WAGES LOWER THAN THE MINIMUM WAGE
20060S1090B1957 - 18 -
1 APPLICABLE UNDER THIS SECTION, AND SUBJECT TO SUCH LIMITATIONS
2 AS TO NUMBER, PROPORTION AND LENGTH OF SERVICE AS THE SECRETARY
3 SHALL PRESCRIBE: PROVIDED, THAT THE MINIMUM WAGE PRESCRIBED
4 UNDER THIS SUBSECTION (B) SHALL NOT BE LESS THAN EIGHTY-FIVE
5 PERCENT OF THE OTHERWISE APPLICABLE WAGE RATE IN EFFECT UNDER
6 SECTION 4. A SPECIAL CERTIFICATE ISSUED UNDER THIS SUBSECTION
7 SHALL PROVIDE THAT FOR SIX OR LESS STUDENTS FOR WHOM IT IS
8 ISSUED SHALL, EXCEPT DURING VACATION PERIODS, BE EMPLOYED ON A
9 PART-TIME BASIS AND NOT IN EXCESS OF TWENTY HOURS IN ANY
10 WORKWEEK AT A SUB-MINIMUM RATE.
11 IN THE CASE OF AN EMPLOYER WHO INTENDS TO EMPLOY SEVEN OR
12 MORE STUDENTS, AT A SUB-MINIMUM RATE, THE SECRETARY MAY ISSUE A
13 SPECIAL CERTIFICATE ONLY IF THE EMPLOYER CERTIFIES TO THE
14 SECRETARY THAT EMPLOYMENT OF SUCH STUDENTS WILL NOT CREATE A
15 SUBSTANTIAL PROBABILITY OF REDUCING THE FULL-TIME EMPLOYMENT
16 OPPORTUNITIES FOR OTHER WORKERS.
17 (C) EMPLOYES SHALL BE PAID FOR OVERTIME NOT LESS THAN ONE
18 AND ONE-HALF TIMES THE EMPLOYE'S REGULAR RATE AS PRESCRIBED IN
19 REGULATIONS PROMULGATED BY THE SECRETARY: PROVIDED, THAT
20 STUDENTS EMPLOYED IN SEASONAL OCCUPATIONS AS DEFINED AND
21 DELIMITED BY REGULATIONS PROMULGATED BY THE SECRETARY MAY, BY
22 SUCH REGULATIONS, BE EXCLUDED FROM THE OVERTIME PROVISIONS OF
23 THIS ACT: AND PROVIDED FURTHER, THAT THE SECRETARY SHALL
24 PROMULGATE REGULATIONS WITH RESPECT TO OVERTIME SUBJECT TO THE
25 LIMITATIONS THAT NO PAY FOR OVERTIME IN ADDITION TO THE REGULAR
26 RATE SHALL BE REQUIRED EXCEPT FOR HOURS IN EXCESS OF FORTY HOURS
27 IN A WORKWEEK.
28 (D) AN EMPLOYE WHOSE EARNING CAPACITY IS IMPAIRED BY
29 PHYSICAL OR MENTAL DEFICIENCY OR INJURY MAY BE PAID LESS THAN
30 THE APPLICABLE MINIMUM WAGE IF EITHER A LICENSE SPECIFYING A
20060S1090B1957 - 19 -
1 WAGE RATE COMMENSURATE WITH THE EMPLOYE'S PRODUCTIVE CAPACITY
2 HAS BEEN OBTAINED BY THE EMPLOYER FROM THE SECRETARY OR A
3 FEDERAL CERTIFICATE IS OBTAINED UNDER SECTION 14(C) OF THE FAIR
4 LABOR STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET
5 SEQ.). A LICENSE OBTAINED FROM THE SECRETARY SHALL BE GRANTED
6 ONLY UPON JOINT APPLICATION OF EMPLOYER AND EMPLOYE.
7 (E) IN LIEU OF THE MINIMUM WAGE PRESCRIBED IN SUBSECTION (A)
8 AND NOTWITHSTANDING SUBSECTIONS (B) AND (D), AN EMPLOYER MAY,
9 DURING THE FIRST SIXTY CALENDAR DAYS WHEN AN EMPLOYE UNDER THE
10 AGE OF TWENTY YEARS IS INITIALLY EMPLOYED, PAY THE EMPLOYE
11 TRAINING WAGES AT A RATE OF NOT LESS THAN THE MINIMUM WAGE SET
12 FORTH IN SECTION 6(A) OF THE FAIR LABOR STANDARDS ACT (29 U.S.C.
13 § 206(A)). A PERSON EMPLOYED AT THE TRAINING WAGE UNDER THIS
14 SUBSECTION SHALL BE INFORMED OF THE AMOUNT OF THE TRAINING WAGE
15 AND THE RIGHT TO RECEIVE THE FULL MINIMUM WAGE, OR A HIGHER
16 WAGE, UPON COMPLETION OF THE TRAINING PERIOD. NO EMPLOYER MAY
17 TAKE ANY ACTION TO DISPLACE EXISTING EMPLOYES, INCLUDING PARTIAL
18 DISPLACEMENTS SUCH AS REDUCTION IN THE HOURS, WAGES OR
19 EMPLOYMENT BENEFITS OF EXISTING EMPLOYES, FOR PURPOSES OF HIRING
20 INDIVIDUALS AT THE TRAINING WAGE AUTHORIZED BY THIS SUBSECTION.
21 SECTION 3. SECTION 5 OF THE ACT, AMENDED DECEMBER 10, 1974
22 (P.L.916, NO.303), JULY 1, 1978 (P.L.735, NO.135), DECEMBER 15,
23 1988 (P.L.1232, NO.150), AND JULY 9, 1990 (P.L.348, NO.79), IS
24 AMENDED TO READ:
25 SECTION 5. EXEMPTIONS.--(A) EMPLOYMENT IN THE FOLLOWING
26 CLASSIFICATIONS SHALL BE EXEMPT FROM BOTH THE MINIMUM WAGE AND
27 OVERTIME PROVISIONS OF THIS ACT:
28 (1) LABOR ON A FARM;
29 (2) DOMESTIC SERVICES IN OR ABOUT THE PRIVATE HOME OF THE
30 EMPLOYER;
20060S1090B1957 - 20 -
1 (3) DELIVERY OF NEWSPAPERS TO THE CONSUMER;
2 (4) IN CONNECTION WITH THE PUBLICATION OF ANY WEEKLY,
3 SEMIWEEKLY, OR DAILY NEWSPAPER WITH A CIRCULATION OF LESS THAN
4 FOUR THOUSAND, THE MAJOR PART OF WHICH CIRCULATION IS WITHIN THE
5 COUNTY WHERE PUBLISHED OR COUNTIES CONTIGUOUS THERETO;
6 (5) IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR
7 PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYE EMPLOYED IN THE
8 CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN
9 ELEMENTARY OR SECONDARY SCHOOLS) OR IN THE CAPACITY OF OUTSIDE
10 SALESMAN (AS SUCH TERMS ARE DEFINED AND DELIMITED FROM TIME TO
11 TIME BY REGULATIONS OF THE SECRETARY, EXCEPT THAT AN EMPLOYE OF
12 A RETAIL OR SERVICE ESTABLISHMENT SHALL NOT BE EXCLUDED FROM THE
13 DEFINITION OF EMPLOYE EMPLOYED IN A BONA FIDE EXECUTIVE OR
14 ADMINISTRATIVE CAPACITY BECAUSE OF THE NUMBER OF HOURS IN HIS OR
15 HER WORKWEEK WHICH HE OR SHE DEVOTES TO ACTIVITIES NOT DIRECTLY
16 OR CLOSELY RELATED TO THE PERFORMANCE OF EXECUTIVE
17 ADMINISTRATIVE ACTIVITIES, IF LESS THAN FORTY PERCENT OF HIS OR
18 HER HOURS WORKED IN THE WORKWEEK ARE DEVOTED TO SUCH
19 ACTIVITIES);
20 (6) IN THE ACTIVITIES OF AN EDUCATIONAL, CHARITABLE,
21 RELIGIOUS OR NONPROFIT ORGANIZATION WHERE THE EMPLOYER-EMPLOYE
22 RELATIONSHIP DOES NOT IN FACT EXIST OR WHERE THE SERVICES ARE
23 RENDERED TO SUCH ORGANIZATION GRATUITOUSLY;
24 (7) IN SEASONAL EMPLOYMENT, IF THE EMPLOYE IS UNDER EIGHTEEN
25 YEARS OF AGE, OR IF A STUDENT UNDER TWENTY-FOUR YEARS OF AGE, BY
26 A NONPROFIT HEALTH OR WELFARE AGENCY ENGAGED IN ACTIVITIES
27 DEALING WITH HANDICAPPED OR EXCEPTIONAL CHILDREN OR BY A
28 NONPROFIT DAY OR RESIDENT SEASONAL RECREATIONAL CAMP FOR CAMPERS
29 UNDER THE AGE OF EIGHTEEN YEARS, WHICH OPERATES FOR A PERIOD OF
30 LESS THAN THREE MONTHS IN ANY ONE YEAR;
20060S1090B1957 - 21 -
1 (9) IN EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A PUBLIC
2 AMUSEMENT OR RECREATIONAL ESTABLISHMENT, ORGANIZED CAMP, OR
3 RELIGIOUS OR NONPROFIT EDUCATIONAL CONFERENCE CENTER, IF (I) IT
4 DOES NOT OPERATE FOR MORE THAN SEVEN MONTHS IN ANY CALENDAR
5 YEAR, OR (II) DURING THE PRECEDING CALENDAR YEAR, ITS AVERAGE
6 RECEIPTS FOR ANY SIX MONTHS OF SUCH YEAR WERE NOT MORE THAN
7 THIRTY-THREE AND ONE-THIRD PERCENT OF ITS AVERAGE RECEIPTS FOR
8 THE OTHER SIX MONTHS OF SUCH YEAR;
9 (10) GOLF CADDY;
10 (11) IN EMPLOYMENT AS A SWITCHBOARD OPERATOR EMPLOYED BY AN
11 INDEPENDENTLY OWNED PUBLIC TELEPHONE COMPANY WHICH HAS NOT MORE
12 THAN SEVEN HUNDRED AND FIFTY STATIONS;
13 (12) EMPLOYES NOT SUBJECT TO CIVIL SERVICE LAWS WHO HOLD
14 ELECTIVE OFFICE OR ARE ON THE PERSONAL STAFF OF SUCH AN
15 OFFICEHOLDER, ARE IMMEDIATE ADVISERS TO HIM OR HER, OR ARE
16 APPOINTED BY HIM OR HER TO SERVE ON A POLICY-MAKING LEVEL.
17 (B) EMPLOYMENT IN THE FOLLOWING CLASSIFICATIONS SHALL BE
18 EXEMPT FROM THE OVERTIME PROVISIONS OF THIS ACT:
19 (1) SEAMAN;
20 (2) ANY SALESMAN, PARTSMAN, OR MECHANIC PRIMARILY ENGAGED IN
21 SELLING AND SERVICING AUTOMOBILES, TRAILERS, TRUCKS, FARM
22 IMPLEMENTS, OR AIRCRAFT IF EMPLOYED BY A NONMANUFACTURING
23 ESTABLISHMENT PRIMARILY ENGAGED IN THE BUSINESS OF SELLING SUCH
24 VEHICLES TO ULTIMATE PURCHASERS;
25 (3) ANY DRIVER EMPLOYED BY AN EMPLOYER ENGAGED IN THE
26 BUSINESS OF OPERATING TAXICABS;
27 (4) ANY EMPLOYE EMPLOYED AS AN ANNOUNCER, NEWS EDITOR, OR
28 CHIEF ENGINEER BY A RADIO OR TELEVISION STATION, THE MAJOR
29 STUDIO OF WHICH IS LOCATED (I) IN A CITY OR TOWN OF ONE HUNDRED
30 THOUSAND POPULATION OR LESS, ACCORDING TO THE LATEST AVAILABLE
20060S1090B1957 - 22 -
1 DECENNIAL CENSUS FIGURES AS COMPILED BY THE BUREAU OF THE
2 CENSUS, EXCEPT WHERE SUCH CITY OR TOWN IS PART OF A STANDARD
3 METROPOLITAN STATISTICAL AREA, AS DEFINED AND DESIGNATED BY THE
4 BUREAU OF THE BUDGET, WHICH HAS A TOTAL POPULATION IN EXCESS OF
5 ONE HUNDRED THOUSAND, OR (II) IN A CITY OR TOWN OF TWENTY-FIVE
6 THOUSAND POPULATION OR LESS, WHICH IS PART OF SUCH AN AREA BUT
7 IS AT LEAST FORTY AIRLINE MILES FROM THE PRINCIPAL CITY IN SUCH
8 AREA;
9 (5) ANY EMPLOYE ENGAGED IN THE PROCESSING OF MAPLE SAP INTO
10 SUGAR (OTHER THAN REFINED SUGAR) OR SYRUP;
11 (6) EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A MOTION PICTURE
12 THEATRE;
13 (7) ANY EMPLOYE OF A MOTOR CARRIER WITH RESPECT TO WHOM THE
14 FEDERAL SECRETARY OF TRANSPORTATION HAS POWER TO ESTABLISH
15 QUALIFICATIONS AND MAXIMUM HOURS OF SERVICE UNDER 49 U.S.C. §
16 3102(B)(1) AND (2) (RELATING TO REQUIREMENTS FOR QUALIFICATIONS,
17 HOURS OF SERVICE, SAFETY AND EQUIPMENT STANDARDS).
18 (C) (1) NOTWITHSTANDING THE PROVISIONS OF SECTION 4(A)(7)
19 AND (8), AN EMPLOYER UNLESS OTHERWISE EXEMPT FROM THE MINIMUM
20 WAGE PROVISIONS OF SECTION 4(A)(6) WHOSE EMPLOYE COMPLEMENT IS
21 COMPOSED OF THE EQUIVALENT OF TEN OR LESS FULL-TIME EMPLOYES TO
22 BE CALCULATED ON A FORTY-HOUR WORKWEEK SHALL PAY:
23 (I) FIVE DOLLARS SIXTY-FIVE CENTS ($5.65) AN HOUR BEGINNING
24 JANUARY 1, 2007.
25 (II) SIX DOLLARS SIXTY-FIVE CENTS ($6.65) AN HOUR BEGINNING
26 JULY 1, 2007.
27 (2) SUCH EMPLOYER SHALL PAY THE FULL AMOUNT OF THE MINIMUM
28 WAGE UNDER SECTION 4(A)(8) BEGINNING JULY 1, 2008.
29 SECTION 4. SECTIONS 6, 7, 8 AND 9 OF THE ACT ARE AMENDED TO
30 READ:
20060S1090B1957 - 23 -
1 SECTION 6. MINIMUM WAGE ADVISORY BOARD.--(A) THERE IS
2 HEREBY CREATED IN THE DEPARTMENT OF LABOR AND INDUSTRY A MINIMUM
3 WAGE ADVISORY BOARD CONSISTING OF NINE MEMBERS TO BE APPOINTED
4 BY THE SECRETARY TO ASSIST HIM OR HER IN CARRYING OUT HIS OR HER
5 DUTIES UNDER THIS ACT, AND FOR THE PURPOSE OF CONDUCTING PUBLIC
6 HEARINGS AT THE REQUEST OF THE SECRETARY IN ORDER TO RECOMMEND
7 RULES AND REGULATIONS FOR THE OCCUPATIONS COVERED WITHIN THIS
8 ACT.
9 (B) OF THE NINE MEMBERS, THREE SHALL BE REPRESENTATIVES OF
10 AN ESTABLISHED RECOGNIZED ASSOCIATION OF LABOR ORGANIZATIONS,
11 THREE SHALL BE REPRESENTATIVES OF AN ESTABLISHED RECOGNIZED
12 ASSOCIATION OF EMPLOYERS AND THREE SHALL BE MEMBERS FROM THE
13 GENERAL PUBLIC. THE SECRETARY OF LABOR AND INDUSTRY OR HIS OR
14 HER DESIGNATED REPRESENTATIVE SHALL BE CHAIRMAN OF THE BOARD.
15 (C) EACH MEMBER OF THE BOARD SHALL RECEIVE COMPENSATION OF
16 THIRTY DOLLARS ($30) PER DAY PLUS NECESSARY EXPENSES, FOR EACH
17 DAY ACTUALLY SPENT IN THE PERFORMANCE OF HIS OR HER DUTIES. NO
18 EMPLOYE OF THE COMMONWEALTH SHALL RECEIVE ANY ADDITIONAL
19 COMPENSATION OR EXPENSES ON ACCOUNT OF HIS OR HER SERVICES UNDER
20 THIS ACT.
21 (D) AT LEAST TEN DAYS' PUBLIC NOTICE SHALL BE GIVEN IN THE
22 MANNER PRESCRIBED BY THE BOARD PRIOR TO ANY PUBLIC HEARING OF
23 THE BOARD. FIVE MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM.
24 (E) THE BOARD SHALL HAVE THE POWER AND DUTY TO:
25 (1) CONSULT WITH THE SECRETARY CONCERNING ANY MATTER ARISING
26 UNDER THE ADMINISTRATION OF THIS ACT AND ADVISE AND ASSIST HIM
27 OR HER IN CARRYING OUT THE DUTIES PRESCRIBED FOR HIM OR HER BY
28 SECTION 8 OF THIS ACT;
29 (2) CONDUCT PUBLIC HEARINGS AT THE REQUEST OF THE SECRETARY
30 IN ORDER TO DEVELOP RULES AND REGULATIONS IN ACCORDANCE WITH
20060S1090B1957 - 24 -
1 SECTION 9 OF THIS ACT, IN WHICH HEARINGS DUE PROCESS OF LAW
2 SHALL BE OBSERVED AND ANY PERSON MAY APPEAR AND BE HEARD OR FILE
3 STATEMENTS IN SUPPORT OF HIS OR HER POSITION;
4 (3) THE BOARD SHALL SUBMIT ITS REPORT INCLUDING
5 RECOMMENDATIONS FOR THE PROMULGATION OF RULES AND REGULATIONS TO
6 THE SECRETARY, WHO SHALL WITHIN THIRTY DAYS THEREAFTER ACCEPT
7 SUCH REPORT OR REFER IT TO THE BOARD FOR FURTHER CONSIDERATION
8 AND CONSULTATION. IF THE REPORT IS REFERRED TO THE BOARD FOR
9 FURTHER CONSIDERATION, THE SECRETARY SHALL, IN CONSULTATION WITH
10 THE BOARD, MODIFY, AMEND, OR OTHERWISE ACT UPON SUCH REPORT
11 WITHIN SIXTY DAYS THEREAFTER. RULES AND REGULATIONS DEVELOPED
12 AND PROMULGATED HEREUNDER SHALL BE PUBLISHED AND ANY PERSON
13 AGGRIEVED THEREBY, SHALL HAVE A RIGHT OF REVIEW AS SET FORTH IN
14 SECTION 10 OF THIS ACT[.] ;
15 (4) SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY BY MARCH
16 1 OF EACH YEAR DETAILING, TO THE MAXIMUM EXTENT POSSIBLE, DATA
17 ON THE PREVIOUS CALENDAR YEAR'S DEMOGRAPHICS OF THOSE WORKERS
18 WHO ARE PAID THE MINIMUM WAGE OR BELOW. THE BOARD MAY INCLUDE
19 ANY OTHER RELEVANT FACTS THAT IT BELIEVES NECESSARY INTO THE
20 CONTENT OF SUCH REPORT; AND
21 (5) MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY
22 SEPTEMBER 1, 2007, AS TO CHANGES THAT IT RECOMMENDS BE MADE TO
23 THIS ACT.
24 SECTION 7. INVESTIGATIONS.--(A) THE SECRETARY OR HIS OR HER
25 REPRESENTATIVE SHALL HAVE AUTHORITY TO INVESTIGATE AND ASCERTAIN
26 THE WAGES OF PERSONS EMPLOYED IN ANY OCCUPATION IN THE
27 COMMONWEALTH; ENTER AND INSPECT THE PLACE OF BUSINESS OR
28 EMPLOYMENT OF ANY EMPLOYER OF EMPLOYES IN ANY OCCUPATION IN THE
29 COMMONWEALTH AT ANY REASONABLE TIME, FOR THE PURPOSE OF
30 EXAMINING AND INSPECTING ANY RECORDS OF ANY SUCH EMPLOYER THAT
20060S1090B1957 - 25 -
1 IN ANY WAY RELATE TO WAGES, HOURS, OR OTHER CONDITIONS OF
2 EMPLOYMENT OF ANY SUCH EMPLOYES; COPY ANY OR ALL OF SUCH RECORDS
3 AS [HE] THE SECRETARY OR [HIS] AN AUTHORIZED REPRESENTATIVE MAY
4 DEEM NECESSARY OR APPROPRIATE; REQUIRE FROM SUCH EMPLOYER FULL
5 AND ACCURATE STATEMENTS IN WRITING, AT SUCH TIMES AS THE
6 SECRETARY MAY DEEM NECESSARY, OF THE WAGES PAID TO ALL EMPLOYES
7 IN HIS OR HER EMPLOYMENT; AND INTERROGATE SUCH PERSONS FOR THE
8 PURPOSE OF ASCERTAINING WHETHER THE PROVISIONS OF THIS ACT AND
9 THE REGULATIONS ISSUED THEREUNDER HAVE BEEN AND ARE BEING
10 COMPLIED WITH.
11 SECTION 8. DUTY OF EMPLOYER.--EVERY EMPLOYER OF EMPLOYES
12 SHALL KEEP A TRUE AND ACCURATE RECORD OF THE HOURS WORKED BY
13 EACH EMPLOYE AND THE WAGES PAID TO EACH, AND SHALL FURNISH TO
14 THE SECRETARY OR HIS OR HER DULY AUTHORIZED REPRESENTATIVE, UPON
15 DEMAND, A SWORN STATEMENT OF THE SAME. SUCH RECORDS SHALL BE
16 OPEN TO INSPECTION BY ANY DULY AUTHORIZED REPRESENTATIVE OF THE
17 SECRETARY AT ANY REASONABLE TIME AND SHALL BE PRESERVED FOR A
18 PERIOD OF THREE YEARS. EVERY EMPLOYER SUBJECT TO THIS ACT SHALL
19 KEEP A SUMMARY OF THIS ACT AND ANY REGULATIONS ISSUED THEREUNDER
20 APPLICABLE TO HIM OR HER, POSTED IN A CONSPICUOUS PLACE WHERE
21 EMPLOYES NORMALLY PASS AND CAN READ IT. EMPLOYERS SHALL, UPON
22 REQUEST, BE FURNISHED COPIES OF SUCH SUMMARIES WITHOUT CHARGE.
23 EMPLOYERS SHALL PERMIT ANY DULY AUTHORIZED REPRESENTATIVE OF THE
24 SECRETARY TO INTERROGATE ANY EMPLOYE IN THE PLACE OF EMPLOYMENT
25 AND DURING WORK HOURS WITH RESPECT TO THE WAGES PAID TO AND THE
26 HOURS WORKED BY SUCH EMPLOYE OR OTHER EMPLOYES.
27 SECTION 9. ENFORCEMENT; RULES AND REGULATIONS.--THE
28 SECRETARY SHALL ENFORCE THIS ACT. [HE] THE SECRETARY SHALL MAKE
29 AND, FROM TIME TO TIME, REVISE REGULATIONS, WITH THE ASSISTANCE
30 OF THE BOARD, WHEN REQUESTED BY [HIM] THE SECRETARY, WHICH SHALL
20060S1090B1957 - 26 -
1 BE DEEMED APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS ACT AND
2 TO SAFEGUARD THE MINIMUM WAGE RATES THEREBY ESTABLISHED. SUCH
3 REGULATIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, REGULATIONS
4 DEFINING AND GOVERNING BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR
5 PROFESSIONAL EMPLOYES AND OUTSIDE [SALESMEN] SALES PERSONS,
6 LEARNERS AND APPRENTICES, THEIR NUMBER, PROPORTION, LENGTH OF
7 LEARNING PERIOD, AND OTHER WORKING CONDITIONS; HANDICAPPED
8 WORKERS; PART-TIME PAY; OVERTIME STANDARDS; BONUSES; ALLOWANCES
9 FOR BOARD, LODGING, APPAREL, OR OTHER FACILITIES OR SERVICES
10 CUSTOMARILY FURNISHED BY EMPLOYERS TO EMPLOYES; ALLOWANCES FOR
11 GRATUITIES; OR ALLOWANCES FOR SUCH OTHER SPECIAL CONDITIONS OR
12 CIRCUMSTANCES WHICH MAY BE INCIDENTAL TO A PARTICULAR EMPLOYER-
13 EMPLOYE RELATIONSHIP.
14 SECTION 5. SECTION 12 OF THE ACT, AMENDED DECEMBER 10, 1974
15 (P.L.916, NO.303), IS AMENDED TO READ:
16 SECTION 12. PENALTIES.--(A) ANY EMPLOYER AND HIS OR HER
17 AGENT, OR THE OFFICER OR AGENT OF ANY CORPORATION, WHO
18 DISCHARGES OR IN ANY OTHER MANNER DISCRIMINATES AGAINST ANY
19 EMPLOYE BECAUSE SUCH EMPLOYE HAS TESTIFIED OR IS ABOUT TO
20 TESTIFY BEFORE THE SECRETARY OR HIS OR HER REPRESENTATIVE IN ANY
21 INVESTIGATION OR PROCEEDING UNDER OR RELATED TO THIS ACT, OR
22 BECAUSE SUCH EMPLOYER BELIEVES THAT SAID EMPLOYE MAY SO TESTIFY
23 SHALL, UPON CONVICTION THEREOF IN A SUMMARY PROCEEDING, BE
24 SENTENCED TO PAY A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS
25 ($500) NOR MORE THAN ONE THOUSAND DOLLARS ($1,000), AND IN
26 DEFAULT OF THE PAYMENT OF SUCH FINE AND COSTS, SHALL BE
27 SENTENCED TO IMPRISONMENT FOR NOT LESS THAN TEN DAYS NOR MORE
28 THAN NINETY DAYS.
29 (B) ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION
30 WHO PAYS OR AGREES TO PAY ANY EMPLOYE LESS THAN THE RATES
20060S1090B1957 - 27 -
1 APPLICABLE TO SUCH EMPLOYE UNDER THIS ACT SHALL, UPON CONVICTION
2 THEREOF IN A SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF
3 NOT LESS THAN SEVENTY-FIVE DOLLARS ($75) NOR MORE THAN THREE
4 HUNDRED DOLLARS ($300) OR TO UNDERGO IMPRISONMENT OF NOT LESS
5 THAN TEN NOR MORE THAN SIXTY DAYS, OR BOTH. EACH WEEK IN WHICH
6 SUCH EMPLOYE IS PAID LESS THAN THE RATE APPLICABLE TO HIM OR HER
7 UNDER THIS ACT AND FOR EACH EMPLOYE WHO IS PAID LESS THAN THE
8 PRESCRIBED RATE, A SEPARATE OFFENSE SHALL BE DEEMED TO OCCUR.
9 ANY AGREEMENT BETWEEN THE EMPLOYER AND THE EMPLOYE TO WORK FOR
10 LESS THAN THE APPLICABLE WAGE RATE SHALL BE NO DEFENSE TO ACTION
11 BY THE COMMONWEALTH UNDER THIS SECTION.
12 (C) ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION
13 WHO VIOLATES ANY OTHER PROVISION OF THIS ACT OR OF ANY
14 REGULATION ISSUED THEREUNDER SHALL, UPON CONVICTION THEREOF IN A
15 SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF NOT LESS THAN
16 ONE HUNDRED DOLLARS ($100) NOR MORE THAN FIVE HUNDRED DOLLARS
17 ($500), AND EACH DAY OF SUCH FAILURE TO COMPLY WITH THIS ACT OR
18 REGULATION, SHALL CONSTITUTE A SEPARATE OFFENSE.
19 SECTION 6. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
20 SECTION 14.1. PREEMPTION.--(A) EXCEPT AS SET FORTH IN
21 SUBSECTION (B), THIS ACT SHALL PREEMPT AND SUPERSEDE ANY LOCAL
22 ORDINANCE OR RULE CONCERNING THE SUBJECT MATTER OF THIS ACT.
23 (B) THIS SECTION DOES NOT PROHIBIT LOCAL REGULATION PURSUANT
24 TO AN ORDINANCE WHICH WAS ADOPTED BY A MUNICIPALITY PRIOR TO
25 JANUARY 1, 2006, AND WHICH REMAINED IN EFFECT ON JANUARY 1,
26 2006.
27 SECTION 7. ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR
28 AS THEY ARE INCONSISTENT WITH THE ADDITION OF SECTION 14.1 OF
29 THE ACT.
30 SECTION 8. THIS ACT SHALL APPLY AS FOLLOWS:
20060S1090B1957 - 28 -
1 (1) THE ADDITION OF SECTION 14.1 OF THE ACT SHALL NOT
2 INVALIDATE ANY ORDINANCE, CHARTER PROVISION, RESOLUTION, RULE
3 OR REGULATION IN EFFECT ON THE EFFECTIVE DATE OF THIS
4 SECTION.
5 (2) THE FOLLOWING PROVISIONS SHALL APPLY TO CONTRACTS
6 ENTERED INTO OR RENEWED ON OR AFTER THE EFFECTIVE DATE OF
7 THIS SECTION:
8 (I) THE ADDITION OF SECTION 14.1 OF THE ACT.
9 (II) SECTION 7 OF THIS ACT.
10 SECTION 9. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
A31L43VDL/20060S1090B1957 - 29 -