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 the rate of the minimum
9wage.

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

12Section 1. Section 3 of the act of January 17, 1968 (P.L.11,
13No.5), known as The Minimum Wage Act of 1968, amended July 9,
142006 (P.L.1077, No.112), is amended to read:

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

16(a) "Secretary" means the Secretary of Labor and Industry.

1(b) "Department" means the Department of Labor and Industry.

2(c) "Board" means the Minimum Wage Advisory Board created by
3this act.

4(d) "Wages" mean compensation due to any employe by reason
5of his or her employment, payable in legal tender of the United
6States or checks on banks convertible into cash on demand at
7full face value, subject to such deductions, charges or
8allowances as may be permitted by regulations of the secretary
9under section 9.

10"Wage" paid to any employe includes the reasonable cost, as
11determined by the secretary, to the employer for furnishing such
12employe with board, lodging, or other facilities, if such board,
13lodging, or other facilities are customarily furnished by such
14employer to his or her employes: Provided, That the cost of
15board, lodging, or other facilities shall not be included as a
16part of the wage paid to any employe to the extent it is
17excluded therefrom under the terms of a bona fide collective-
18bargaining agreement applicable to the particular employe:
19Provided, further, That the secretary is authorized to determine
20the fair value of such board, lodging, or other facilities for
21defined classes of employes and in defined areas, based on
22average cost to the employer or to groups of employers similarly
23situated, or average value to groups of employes, or other
24appropriate measures of fair value. Such evaluations, where
25applicable and pertinent, shall be used in lieu of actual
26measure of cost in determining the wage paid to any employe.

27In determining the hourly wage an employer is required to pay
28a tipped employe, the amount paid such employe by his or her
29employer shall be an amount equal to: (i) the cash wage paid the
30employe which for the purposes of the determination shall be not

1less than [the cash wage required to be paid the employe on the
2date immediately prior to the effective date of this
3subparagraph] fifty percent of the wage in effect under section 
44(a)(9) of this act or fifty percent of the wage in effect under 
5section 4(a)(10) of this act; and (ii) an additional amount on
6account of the tips received by the employe which is equal to
7the difference between the wage specified in subparagraph (i)
8and the wage in effect under section 4 of this act. The
9additional amount on account of tips may not exceed the value of
10tips actually received by the employe. The previous sentence
11shall not apply with respect to any tipped employe unless:

12(1) Such employe has been informed by the employer of the
13provisions of this subsection;

14(2) All tips received by such employe have been retained by
15the employe and shall not be surrendered to the employer to be
16used as wages to satisfy the requirement to pay the current
17hourly minimum rate in effect; where the gratuity is added to
18the charge made by the establishment, either by the management,
19or by the customer, the gratuity shall become the property of
20the employe; except that this subsection shall not be construed
21to prohibit the pooling of tips among employes who customarily
22and regularly receive tips.

23(e) "Occupation" means any industry, trade, business,
24service, or employment or class or group thereof in which
25individuals are gainfully employed.

26(f) "Employe" includes to suffer or to permit to work.

27(g) "Employer" includes any individual, partnership,
28association, corporation, business trust, or any person or group
29of persons acting, directly or indirectly, in the interest of an
30employer in relation to any employe.

1(h) "Employe" includes any individual employed by an
2employer.

3(i) "Gratuities" means voluntary, monetary contributions
4received by an employe from a guest, patron or customer for
5services rendered.

6Section 2. Section 4(a) of the act is amended by adding
7paragraphs to read:

8Section 4. Minimum Wages.--Except as may otherwise be
9provided under this act:

10(a) Every employer shall pay to each of his or her employes
11wages for all hours worked at a rate of not less than:

12* * *

13(9) Nine dollars ($9.00) an hour beginning on the effective
14date of this paragraph.

15(10) Ten dollars ten cents ($10.10) an hour beginning one
16year after the effective date of this paragraph.

17* * *

18Section 3. This act shall take effect in 60 days.