the employer that is party to the agreement.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employer." As defined in section 3(g) of the act of January
17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968.
The term does not include governmental or quasi-governmental
bodies.
"Low-wage employee." An employee who earns:
(1) an hourly rate equal to the minimum wage required by
the applicable Federal, State or local minimum wage law; or
(2) a wage 30% or more below the Pennsylvania median
wage for all workers as calculated by the United States
Department of Labor or $20 or less per hour, whichever is
greater.
Section 3. Prohibiting covenants not to compete for low-wage
employees.
(a) General rule.--No employer may enter into a covenant not
to compete with a low-wage employee of the employer.
(b) Void agreements.--A covenant not to compete entered into
between an employer and a low-wage employee is void.
Section 4. Enforcement.
The department shall enforce this act and may conduct
investigations as it deems necessary for enforcement.
Section 5. Penalty.
An employer found to be in violation of any provision of this
act shall be subject to the following penalties:
(1) A fine of not more than $5,000 upon the first
violation.
(2) A fine of not more than $10,000 for each subsequent
violation.
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