PRINTER'S NO. 4161

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2693

Session of

2018

INTRODUCED BY RABB, McCLINTON, SCHLOSSBERG, J. HARRIS, KINSEY,

ROEBUCK, A. DAVIS, DeLUCA, SOLOMON, YOUNGBLOOD, DONATUCCI,

WARREN, TAI, SIMS, SCHWEYER, DALEY, NEILSON, J. McNEILL AND

rates for learners and apprentices; creating a Minimum Wage

Advisory Board and defining its powers and duties; conferring

powers and imposing duties upon the Department of Labor and

Industry; imposing duties on employers; and providing

penalties," further providing for definitions; providing for

tipped employees; and further providing for preemption.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 3(d) and (i) of the act of January 17,

1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, are

States or checks on banks convertible into cash on demand at

full face value, subject to such deductions, charges or

allowances as may be permitted by regulations of the secretary

under section 9.

"Wage" paid to any employe includes the reasonable cost, as

determined by the secretary, to the employer for furnishing such

employe with board, lodging, or other facilities, if such board,

lodging, or other facilities are customarily furnished by such

employer to his or her employes: Provided, That the cost of

board, lodging, or other facilities shall not be included as a

average cost to the employer or to groups of employers similarly

situated, or average value to groups of employes, or other

appropriate measures of fair value. Such evaluations, where

applicable and pertinent, shall be used in lieu of actual

measure of cost in determining the wage paid to any employe.

[In determining the hourly wage an employer is required to

pay a tipped employe, the amount paid such employe by his or her

employer shall be an amount equal to: (i) the cash wage paid the

employe which for the purposes of the determination shall be not

less than the cash wage required to be paid the employe on the

account of tips may not exceed the value of tips actually

received by the employe. The previous sentence shall not apply

with respect to any tipped employe unless:

(1) Such employe has been informed by the employer of the

provisions of this subsection;

(2) All tips received by such employe have been retained by

the employe and shall not be surrendered to the employer to be

used as wages to satisfy the requirement to pay the current

hourly minimum rate in effect; where the gratuity is added to

(i) ["Gratuities"] "Gratuity" or "tip" means a voluntary,

monetary [contributions] contribution received by an employe

from a guest, patron or customer for services rendered.

(j) "Tipped employe" means an employe who customarily and

regularly receives a gratuity during the course of the employe's

employment.

Section 2. The act is amended by adding a section to read:

Section 4.1. Tipped Employes.--(a) An employer shall pay a

tipped employe wages for all hours worked at a rate of not less

than:

2026.

(4) Beginning January 1, 2027, the minimum wage under

section 4 or fifteen dollars ($15.00), whichever is greater.

(5) Beginning January 1, 2028, and for each succeeding

January 1 thereafter, the minimum wage shall be increased by an

annual cost-of-living adjustment calculated by the secretary

using the percentage change in the Consumer Price Index for All

Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,

Delaware and Maryland area. In calculating the adjustment, the

secretary. The secretary shall, within ten days following the

determination, forward a notice of the determination to the

Legislative Reference Bureau for publication in the next

Pennsylvania Bulletin.

(a.1) A municipality may enact an ordinance which requires

an employer to pay each of his or her employes wages for all

hours worked at a rate higher than the rate imposed under

subsection (a). A copy of an ordinance adopted by a municipality

under this subsection shall be submitted to the department.

(b) The following shall apply:

by the employe and shall not be surrendered or paid to the

employer. This paragraph shall not be deemed to prohibit the

pooling of gratuities among tipped employes.

(3) If a gratuity is added, either by the employer or

manager of the establishment or by the guest, patron or

customer, to the charge to the guest, patron or customer, the

gratuity shall become the property of the tipped employe and

shall not be used by the employer to satisfy the requirement to

pay the wage then in effect.

to an ordinance which was adopted by a municipality prior to

January 1, 2006, and which remained in effect on January 1,

2006.

Section 4. The addition of section 4.1(a.1) of the act shall

apply to contracts entered into or renewed on or after the

effective date of this section.

Section 5. This act shall take effect as follows:

section 3(d) of the act and the addition of section 4.1 of

the act shall take effect in six months.

immediately.