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
22under section 9.

1"Wage" paid to any employe includes the reasonable cost, as
2determined by the secretary, to the employer for furnishing such
3employe with board, lodging, or other facilities, if such board,
4lodging, or other facilities are customarily furnished by such
5employer to his or her employes: Provided, That the cost of
6board, lodging, or other facilities shall not be included as a
7part of the wage paid to any employe to the extent it is
8excluded therefrom under the terms of a bona fide collective-
9bargaining agreement applicable to the particular employe:
10Provided, further, That the secretary is authorized to determine
11the fair value of such board, lodging, or other facilities for
12defined classes of employes and in defined areas, based on
13average cost to the employer or to groups of employers similarly
14situated, or average value to groups of employes, or other
15appropriate measures of fair value. Such evaluations, where
16applicable and pertinent, shall be used in lieu of actual
17measure of cost in determining the wage paid to any employe.

18In determining the hourly wage an employer is required to pay
19a tipped employe, the amount paid such employe by his or her
20employer shall be an amount equal to: (i) the cash wage paid the
21employe which for the purposes of the determination shall be not
22less than the cash wage required to be paid the employe [on the
23date immediately prior to the effective date of this
24subparagraph] under section 4 of this act; and (ii) an
25additional amount on account of the tips received by the employe
26which is equal to the difference between the wage specified in
27subparagraph (i) and the wage in effect under section 4 of this
28act. The additional amount on account of tips may not exceed the
29value of tips actually received by the employe. The previous
30sentence shall not apply with respect to any tipped employe


2(1) Such employe has been informed by the employer of the
3provisions of this subsection;

4(2) All tips received by such employe have been retained by
5the employe and shall not be surrendered to the employer to be
6used as wages to satisfy the requirement to pay the current
7hourly minimum rate in effect; where the gratuity is added to
8the charge made by the establishment, either by the management,
9or by the customer, the gratuity shall become the property of
10the employe; except that this subsection shall not be construed
11to prohibit the pooling of tips among employes who customarily
12and regularly receive tips.

13* * *

14Section 2. Section 4(a) of the act, amended July 5, 2012
15(P.L.987, No.109), is amended to read:

16Section 4. Minimum Wages.--Except as may otherwise be
17provided under this act:

18(a) Every employer shall pay to each of his or her employes
19wages for all hours worked at a rate of not less than:

20(1) Two dollars sixty-five cents ($2.65) an hour upon the
21effective date of this amendment.

22(2) Two dollars ninety cents ($2.90) an hour during the year
23beginning January 1, 1979.

24(3) Three dollars ten cents ($3.10) an hour during the year
25beginning January 1, 1980.

26(4) Three dollars thirty-five cents ($3.35) an hour after
27December 31, 1980.

28(5) Three dollars seventy cents ($3.70) an hour beginning
29February 1, 1989.

30(6) Five dollars fifteen cents ($5.15) an hour beginning

1September 1, 1997.

2(7) Six dollars twenty-five cents ($6.25) an hour beginning
3January 1, 2007.

4(8) Seven dollars fifteen cents ($7.15) an hour beginning
5July 1, 2007.

6(9) For a tipped employe who customarily and regularly
7receives tips, but who actually receives in tips an amount equal
8to the rate otherwise applicable under this section:

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

11(ii) four dollars eighty-three cents ($4.83) an hour in cash
12wages beginning January 1, 2014; and

13(iii) seventy percent (70%) of the rate otherwise applicable
14under this section or the Fair Labor Standards Act of 1938 (52
15Stat. 1060, 29 U.S.C. § 201 et seq.), whichever is greater, an
16hour in cash wages beginning January 1, 2015.

17* * *

18Section 3. The act is amended by adding a section to read:

19Section 13.1. Reporting by Department.

20The department shall collect information of the number of
21employers who violate the provisions of this act, including the
22amount of fines imposed for violations, and shall publish the
23information on the department's publicly accessible Internet
24website. The department shall update the information every six

26Section 4. Any and all regulations are hereby abrogated to
27the extent of any inconsistency with this act.

28Section 5. This act shall take effect immediately.