PRINTER'S NO. 284
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
12
Session of
2017
INTRODUCED BY TARTAGLIONE, LEACH, BREWSTER, FONTANA, COSTA,
YUDICHAK, HAYWOOD, SCHWANK, HUGHES, STREET AND BROWNE,
FEBRUARY 6, 2017
REFERRED TO LABOR AND INDUSTRY, FEBRUARY 6, 2017
AN ACT
Amending the act of January 17, 1968 (P.L.11, No.5), entitled
"An act establishing a fixed minimum wage and overtime rates
for employes, with certain exceptions; providing for minimum
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, for rate of
minimum wages, for Minimum Wage Advisory Board, for
investigations, for duty of employer, for penalties and for
civil actions; establishing the Wage Enforcement Fund; and
further providing for preemption.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3 of the act of January 17, 1968 (P.L.11,
No.5), known as The Minimum Wage Act of 1968, is amended by
adding a subsection to read:
Section 3. Definitions.--As used in this act:
* * *
(j) "High violation industry" means an industry that incurs
at least 25 violations over a two-year period.
Section 2. Sections 4(a), 6(e)(4) and (5), 7, 8, 12 and 13
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of the act are amended to read:
Section 4. Minimum Wages.--Except as may otherwise be
provided under this act:
(a) Every employer shall pay to each of his or her employes
wages for all hours worked at a rate of not less than:
(1) Two dollars sixty-five cents ($2.65) an hour upon the
effective date of this amendment.
(2) Two dollars ninety cents ($2.90) an hour during the year
beginning January 1, 1979.
(3) Three dollars ten cents ($3.10) an hour during the year
beginning January 1, 1980.
(4) Three dollars thirty-five cents ($3.35) an hour after
December 31, 1980.
(5) Three dollars seventy cents ($3.70) an hour beginning
February 1, 1989.
(6) Five dollars fifteen cents ($5.15) an hour beginning
September 1, 1997.
(7) Six dollars twenty-five cents ($6.25) an hour beginning
January 1, 2007.
(8) Seven dollars fifteen cents ($7.15) an hour beginning
July 1, 2007.
(9) Twelve dollars ($12.00) an hour beginning July 1, 2017.
(10) Thirteen dollars ($13.00) an hour beginning July 1,
2018.
(11) Fourteen dollars ($14.00) an hour beginning July 1,
2019.
(12) Fifteen Dollars ($15.00) an hour beginning July 1,
2020.
(13) Beginning January 1, 2022, and each succeeding January
1 thereafter, the minimum wage shall be increased by an annual
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cost-of-living adjustment calculated by applying the percentage
change in the Consumer Price Index for All Urban Consumers (CPI-
U) for the Pennsylvania, New Jersey, Delaware and Maryland area,
for the most recent twelve-month period for which figures have
been officially reported by the United States Department of
Labor, Bureau of Labor Statistics sixty days prior to the date
the adjustment is due to take effect, to the then current salary
amounts. The percentage increase and the minimum wage amounts
shall be determined by the secretary as prescribed in this
section and public notice given in the Pennsylvania Bulletin
within ten days of the date such determination is made.
* * *
Section 6. Minimum Wage Advisory Board.--* * *
(e) The board shall have the power and duty to:
* * *
(4) submit an annual report to the General Assembly by
[March] April 1 of each year detailing, to the maximum extent
possible, data on the previous calendar year's demographics of
those workers who are paid the minimum wage or below. The board
may include any other relevant facts that it believes necessary
into the content of such report; and
(5) make recommendations to the General Assembly by
September 1[, 2007,] of each year as to changes that it
recommends be made to this act.
Section 7. Investigations.--(a) The secretary or his or her
representative shall have authority to investigate and ascertain
the wages of persons employed in any occupation in the
Commonwealth; enter and inspect the place of business or
employment of any employer of employes in any occupation in the
Commonwealth at any reasonable time, for the purpose of
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examining and inspecting any records of any such employer that
in any way relate to wages, hours, or other conditions of
employment of any such employes; copy any or all of such records
as the secretary or an authorized representative may deem
necessary or appropriate; require from such employer full and
accurate statements in writing, at such times as the secretary
may deem necessary, of the wages paid to all employes in his or
her employment; and interrogate such persons for the purpose of
ascertaining whether the provisions of this act and the
regulations issued thereunder have been and are being complied
with.
(b) The department shall collect on a quarterly basis the
following data categorized by industry: the number of
violations; amount of fines collected; nature of violations;
number of individual complaints filed; number of complaints
resolved; amount of unpaid wages owed; amount of unpaid wages
recovered; number of pending individual complaints; number of
workplaces investigated from complaints and number of workplaces
investigated proactively; number of workplaces reinvestigated
following violations; number of subsequent violations. On a
semi-annual basis, the department shall prepare and submit a
report of this data to the chairperson of the Labor and Industry
Committee of the Senate and the chairperson of the Labor and
Industry Committee of the House of Representatives and post the
report on the department's publicly accessible Internet website.
(c) The secretary shall investigate high-violation
industries no less than quarterly; train investigators to
recognize basic labor, health and safety violations; and engage
in cross-agency referrals to protect workers' rights.
Section 8. Duty of Employer.--(a) Every employer of
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employes shall keep a true and accurate record of the hours
worked by each employe, the hourly rate, piece rate or weekly
rate of pay for each employe and the wages paid to each, and
shall furnish to the secretary or his or her duly authorized
representative, upon demand, a sworn statement of the same.
(b) Failure of an employer to comply with the recordkeeping
requirements of this section shall raise a rebuttable
presumption that the employer failed to pay the required minimum
wage rate.
(c) Such records shall be open to inspection by any duly
authorized representative of the secretary at any reasonable
time and shall be preserved for a period of three years.
(d) Every employer subject to this act shall keep a summary
of this act and any regulations issued thereunder applicable to
him or her, posted in a conspicuous place where employes
normally pass and can read it. Employers shall, upon request, be
furnished copies of such summaries without charge.
(e) [Employers] Every employer shall permit any duly
authorized representative of the secretary to interrogate any
employe in the place of employment and during work hours with
respect to the wages paid to and the hours worked by such
employe or other employes.
(f) Every employer shall, upon hiring an employe, provide
its name, address, telephone number and other contact
information and the pay rate and expected weekly hours to the
employe and provide a timely update of this information when
appropriate to the employe.
Section 12. Penalties.--(a) Any employer and his or her
agent, or the officer or agent of any corporation, who
discharges or in any other manner discriminates against any
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employe [because such employe has] who has filed or submitted a
complaint under this act, cooperated with the secretary or the
secretary's representative, submitted evidence, testified or is
about to testify before the secretary or [his or her] the
secretary's representative in any investigation or proceeding
under or related to this act, or because such employer believes
that said employe may [so testify] take these actions, or has
exercised any right under this act or any regulation
implementing its provisions, or because such employe provides
assistance or information to another employe about this act
shall, upon conviction thereof [in a summary proceeding], be
sentenced to pay a fine of not less than five hundred dollars
($500) nor more than one thousand dollars ($1,000), and in
default of the payment of such fine and costs, shall be
sentenced to imprisonment for not less than ten days nor more
than ninety days. A first offense under this subsection shall be
graded as a summary offense. A second or subsequent offense
under this subsection, committed within a five-year period of
the prior offense, shall be graded as a misdemeanor of the third
degree and shall be punishable by a fine of not less than one
thousand dollars ($1,000) nor more than three thousand dollars
($3,000) or to imprisonment of not less than ten nor more than
one hundred days. Each day of such failure to comply with this
subsection or its regulations and each employe who is discharged
or in any other manner discriminated against shall constitute a
separate offense subject to a separate penalty. Any employer and
his or her agent, or the officer or agent of any corporation,
can also be required to pay the employe an amount set by the
court sufficient to compensate the employe and deter future
violations.
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(b) Any employer or the officer or agent of any corporation
who pays or agrees to pay any employe less than the rates
applicable to such employe under this act shall, upon conviction
thereof [in a summary proceeding], be sentenced to pay to such
employe an amount equal to the balance of wages owed and twice
the amount of such underpaid wages and to pay a fine of not less
than [seventy-five dollars ($75)] two hundred dollars ($200) nor
more than [three hundred dollars ($300)] one thousand dollars
($1,000) or to undergo imprisonment of not less than ten nor
more than sixty days, or both. Each week in which such employe
is paid less than the rate applicable to him or her under this
act and for each employe who is paid less than the prescribed
rate, a separate offense shall be deemed to occur[.] which shall
be subject to a separate penalty. A first offense under this
subsection shall be graded as a summary offense. A second or
subsequent offense under this subsection, committed within a
five-year period of the prior offense, shall be graded as a
misdemeanor of the third degree and shall be punishable by a
fine of not less than five hundred dollars ($500) nor more than
one thousand dollars ($1,000) or to imprisonment of not less
than ten nor more than seventy days, or both. Any agreement
between the employer and the employe to work for less than the
applicable wage rate shall be no defense to action by the
Commonwealth under this section.
(b.1) Any employer who fails to provide updated information
to an employe as required by section 8(f) shall, upon conviction
thereof, be sentenced to pay a fine of not less than one hundred
fifty dollars ($150) nor more than three hundred fifty dollars
($350). Each day in which an employe is not provided with this
information, and each employe to whom this information is not
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provided, shall constitute a separate offense which shall be
subject to a separate penalty. A first offense under this
subsection shall be graded as a summary offense. A second or
subsequent offense under this subsection, committed within a
five-year period of the prior offense, shall be graded as a
misdemeanor of the third degree and shall be punishable by a
fine of not less than five hundred dollars ($500) nor more than
one thousand dollars ($1,000).
(c) Any employer or the officer or agent of any corporation
who violates any other provision of this act or of any
regulation issued thereunder shall, upon conviction thereof [in
a summary proceeding], be sentenced to pay a fine of not less
than [one hundred dollars ($100)] two hundred dollars ($200) nor
more than [five hundred dollars ($500), and each] one thousand
dollars ($1,000). Each day of such failure to comply with this
act or regulation, and each employe against whom the employer or
officer or agent of any corporation violated any other provision
of this act or regulation, shall constitute a separate
offense[.] which shall be subject to a separate penalty. A first
offense under this subsection shall be graded as a summary
offense. A second or subsequent offense under this subsection,
committed within a five-year period of the prior offense, shall
be graded as a misdemeanor of the third degree and shall be
punishable by a fine of not less than five hundred dollars
($500) nor more than one thousand dollars ($1,000).
(d) In addition to any other civil remedy or criminal
penalty provided for in this act, the secretary may order an
employer to pay wages owed to an employe under this act and
impose a civil penalty of up to one thousand dollars ($1,000)
per violation of this act or the regulations, or twice the
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underpaid wages in damages to the employe, whichever is greater.
The secretary may issue orders and levy the civil penalty only
after affording the accused party the opportunity for a hearing
as provided in 2 Pa.C.S. (relating to administrative law and
procedure). Each week in which an employe is paid less than the
rate applicable to the employe under this act and for each
employe who is paid less than the prescribed rate shall
constitute a separate violation which shall be subject to a
separate penalty. For other violations of this act or the
regulations, each day of such failure to comply with this act or
regulation shall constitute a separate violation. The secretary
may seek enforcement of the payment of civil penalties and
orders in Commonwealth Court. At the request of an employe, the
department shall assign that portion of the money due that
constitutes wages, wage supplements, interest on wages or wage
supplements or liquidated damages due that employe, to that
employe and file an order in that amount in the name of that
employe with the county clerk of the county where the employer
resides or has a place of business. The filing of such order
shall be the full force and effect of a judgment duly docketed
in the office of such clerk.
(e) An employer similar in operation and ownership to
another employer found in violation of subsection (a), (b),
(b.1), (c) or (d) shall be deemed the same employer for the
purposes of this section if the employes of the similar employer
are engaged in substantially the same work in substantially the
same working conditions under substantially the same supervisors
or if the similar employer has substantially the same production
process, produces substantially the same products and has the
same body of customers as the other employer found in violation
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of subsection (a), (b), (b.1), (c) or (d). Such similar employer
shall continue to be subject to this section and shall be liable
for the acts of such other employer under this section, as
applicable.
(f) All fines and penalties collected under this section and
sections 9.1 and 11.1 of the act of July 14, 1961 (P.L.637,
No.329), known as the "Wage Payment and Collection Law," shall
be deposited into the Wage Enforcement Fund established under
section 13.1 of this act. This subsection does not apply to
penalties and wages paid to employes for violations of this act
or the "Wage Payment and Collection Law".
Section 13. Civil Actions.--If any employe is paid by his or
her employer less than the minimum wages provided by section 4
of this act or by any regulation issued thereunder, such worker
may recover in a civil action the full amount of such minimum
wage less any amount actually paid to the worker by the
employer, together with liquidated damages equal to twice the
amount of underpaid wages, costs and such reasonable attorney's
fees as may be allowed by the court, and any agreement between
the employer and the worker to work for less than such minimum
wage shall be no defense to such action. At the request of any
employe paid less than the minimum wage to which such employe
was entitled under this act and regulations issued thereunder,
the secretary may take an assignment of such wage claim, in
trust for the assigning worker and may bring any legal action
necessary to collect such claim, and the employer shall be
required to pay [the cost] liquidated damages equal to twice the
amount of underpaid wages, the costs and such reasonable
attorney's fees as may be allowed by the court.
Section 3. The act is amended by adding a section to read:
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Section 13.1. Wage Enforcement Fund.--(a) The Wage
Enforcement Fund is established in the State Treasury. The money
in the Wage Enforcement Fund shall consist of the fines and
penalties collected under section 12 of this act and sections
9.1 and 11.1 of the act of July 14, 1961 (P.L.637, No.329),
known as the "Wage Payment and Collection Law," and deposited
into the fund pursuant to section 12(e) of this act.
(b) Money in the Wage Enforcement Fund are hereby
appropriated on a continuing basis, upon approval of the
Governor, to the department for periodic inspections, for
investigations of violations and for the enforcement of this act
and the "Wage Payment and Collection Law," including, but not
limited to, staffing for inspection, investigation and
enforcement under this act and the "Wage Payment and Collection
Law."
(c) No money may be expended or obligated from the Wage
Enforcement Fund to a third party for any other purpose than
investigation, training investigators and enforcement under this
act and the "Wage Payment and Collection Law."
(d) Money in the Wage Enforcement Fund shall not lapse at
any time or be transferred to any other fund, except as provided
in section 12(e) of this act.
(e) No later than June 30 of each calendar year the
department shall provide a report to the Governor and the
General Assembly, through the Secretary-Parliamentarian of the
Senate and the Chief Clerk of the House of Representatives,
regarding the Wage Enforcement Fund. The report shall include an
accounting for the fines collected and deposited into the fund,
the expenditures and transfers from the fund during the prior
year, a description of the purposes for which expenditures from
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the fund were made in the prior year and a full account of the
data collections required of the department under section 7 of
this act. This report shall be posted on the department's
publicly accessible Internet website no later than July 1 of
each calendar year.
Section 4. Section 14.1 of the act is repealed:
[Section 14.1. Preemption.--(a) Except as set forth in
subsection (b), this act shall preempt and supersede any local
ordinance or rule concerning the subject matter of this act.
(b) This section does not prohibit local regulation pursuant
to an ordinance which was adopted by a municipality prior to
January 1, 2006, and which remained in effect on January 1,
2006.]
Section 5. Any and all regulations are hereby abrogated to
the extent that they are inconsistent with this act.
Section 6. This act shall take effect immediately.
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