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PRIOR PRINTER'S NO. 54
PRINTER'S NO. 1389
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
79
Session of
2019
INTRODUCED BY TARTAGLIONE, FONTANA, SCHWANK, STREET, HUGHES,
COSTA, BREWSTER, BROWNE, HAYWOOD, YUDICHAK, LEACH, IOVINO AND
L. WILLIAMS, JANUARY 23, 2019
SENATOR BARTOLOTTA, LABOR AND INDUSTRY, AS AMENDED,
NOVEMBER 18, 2019
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.; PROVIDING FOR
FEDERAL COMPLIANCE; AND FURTHER PROVIDING FOR MINIMUM WAGES
AND FOR EXEMPTIONS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3(d) of the act of January 17, 1968
(P.L.11, No.5), known as The Minimum Wage Act of 1968, is
amended to read:
Section 3. Definitions.--As used in this act:
* * *
(d) "Wages" mean compensation due to any employe by reason
of his or her employment, payable in legal tender of the United
States or checks on banks convertible into cash on demand at
full face value, subject to such deductions, charges or
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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
part of the wage paid to any employe to the extent it is
excluded therefrom under the terms of a bona fide collective-
bargaining agreement applicable to the particular employe:
Provided, further, That the secretary is authorized to determine
the fair value of such board, lodging, or other facilities for
defined classes of employes and in defined areas, based on
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
date immediately prior to the effective date of this
subparagraph; and (ii) an additional amount on account of the
tips received by the employe which is equal to the difference
between the wage specified in subparagraph (i) and the wage in
effect under section 4 of this act. The additional amount on
account of tips may not exceed the value of tips actually
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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
the charge made by the establishment, either by the management,
or by the customer, the gratuity shall become the property of
the employe; except that this subsection shall not be construed
to prohibit the pooling of tips among employes who customarily
and regularly receive tips. An employer that permits a customer
to pay a gratuity by credit card shall pay the employes the full
amount of the gratuity that the customer indicated on the credit
card slip without deduction for any credit card payment
processing fee or cost that may be charged to the employer by
the credit card company. Payment of a gratuity made by a
customer using a credit card shall be made to the employe not
later than the next regular payday following the date the
customer authorized the credit card payment.
* * *
Section 2. This act shall take effect in 60 days.
SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 3.1. FEDERAL COMPLIANCE.--THE MINIMUM WAGE AND
OVERTIME REQUIREMENTS UNDER THIS ACT SHALL BE APPLIED IN
ACCORDANCE WITH THE MINIMUM WAGE AND OVERTIME PROVISIONS OF THE
FAIR LABOR STANDARDS ACT OF 1938 (29 U.S.C. §§ 201-219) AND THE
REGULATIONS PROMULGATED UNDER THE FAIR LABOR STANDARDS ACT OF
1938, EXCEPT WHEN A HIGHER STANDARD IS SPECIFIED UNDER THIS ACT
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OR REGULATIONS PROMULGATED UNDER THIS ACT.
SECTION 2.1. SECTION 4(A) OF THE ACT IS AMENDED BY ADDING
PARAGRAPHS 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:
* * *
(9) EIGHT DOLLARS ($8.00) AN HOUR BEGINNING JULY 1, 2020.
(10) EIGHT DOLLARS FIFTY CENTS ($8.50) AN HOUR BEGINNING
JANUARY 1, 2021.
(11) NINE DOLLARS ($9.00) AN HOUR BEGINNING JULY 1, 2021.
(12) NINE DOLLARS AND FIFTY CENTS ($9.50) AN HOUR BEGINNING
JANUARY 1, 2022.
* * *
SECTION 3. SECTION 5(A)(3), (4), (5) AND (11) OF THE ACT ARE
AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
READ:
SECTION 5. EXEMPTIONS.--(A) EMPLOYMENT IN THE FOLLOWING
CLASSIFICATIONS SHALL BE EXEMPT FROM BOTH THE MINIMUM WAGE AND
OVERTIME PROVISIONS OF THIS ACT:
* * *
[(3) DELIVERY OF NEWSPAPERS TO THE CONSUMER;
(4) IN CONNECTION WITH THE PUBLICATION OF ANY WEEKLY,
SEMIWEEKLY, OR DAILY NEWSPAPER WITH A CIRCULATION OF LESS THAN
FOUR THOUSAND, THE MAJOR PART OF WHICH CIRCULATION IS WITHIN THE
COUNTY WHERE PUBLISHED OR COUNTIES CONTIGUOUS THERETO;]
(5) IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR
PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYE EMPLOYED IN THE
CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN
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ELEMENTARY OR SECONDARY SCHOOLS) [OR IN THE CAPACITY OF OUTSIDE
SALESMAN (AS SUCH TERMS ARE DEFINED AND DELIMITED FROM TIME TO
TIME BY REGULATIONS OF THE SECRETARY, EXCEPT THAT AN EMPLOYE OF
A RETAIL OR SERVICE ESTABLISHMENT SHALL NOT BE EXCLUDED FROM THE
DEFINITION OF EMPLOYE EMPLOYED IN A BONA FIDE EXECUTIVE OR
ADMINISTRATIVE CAPACITY BECAUSE OF THE NUMBER OF HOURS IN HIS OR
HER WORKWEEK WHICH HE OR SHE DEVOTES TO ACTIVITIES NOT DIRECTLY
OR CLOSELY RELATED TO THE PERFORMANCE OF EXECUTIVE
ADMINISTRATIVE ACTIVITIES, IF LESS THAN FORTY PERCENT OF HIS OR
HER HOURS WORKED IN THE WORKWEEK ARE DEVOTED TO SUCH
ACTIVITIES);] OR IN THE CAPACITY OF OUTSIDE SALESMAN, A HIGHLY
COMPENSATED EMPLOYE, COMPUTER SYSTEMS ANALYST, COMPUTER
PROGRAMMER, SOFTWARE ENGINEER OR OTHER SIMILARLY SKILLED WORKER;
* * *
[(11) IN EMPLOYMENT AS A SWITCHBOARD OPERATOR EMPLOYED BY AN
INDEPENDENTLY OWNED PUBLIC TELEPHONE COMPANY WHICH HAS NOT MORE
THAN SEVEN HUNDRED AND FIFTY STATIONS;]
* * *
(D) THE FOLLOWING SHALL APPLY TO SUBSECTION (A)(5):
(1) WHEN THE CLASSIFICATIONS UNDER SUBSECTION (A)(5) ARE
REQUIRED TO BE COMPENSATED ON A SALARY OR FEE BASIS IN
ACCORDANCE WITH THE FAIR LABOR STANDARDS ACT OF 1938 (29 U.S.C.
§§ 201-219) AND 29 CFR PT. 541 (RELATING TO DEFINING AND
DELIMITING THE EXEMPTIONS FOR EXECUTIVE, ADMINISTRATIVE,
PROFESSIONAL, COMPUTER AND OUTSIDE SALES EMPLOYEES), AS AMENDED,
EMPLOYERS MAY USE THE PAYMENT OF NONDISCRETIONARY BONUSES,
INCENTIVES AND COMMISSIONS, PAID ANNUALLY OR MORE FREQUENTLY, TO
DETERMINE UP TO TEN PERCENT OF THE SALARY OR FEE AMOUNT. AN
EMPLOYER MAY DESIGNATE ANY FIFTY-TWO-WEEK PERIOD IN DETERMINING
ANNUAL PAYMENTS. IF AN EMPLOYER FAILS TO DESIGNATE IN WRITING
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THE ANNUAL PAYMENT TIME PERIOD IN ADVANCE, A CALENDAR YEAR WILL
APPLY.
(2) EFFECTIVE JANUARY 1, 2023, THE SALARY OR FEE BASIS UNDER
PARAGRAPH (1) MAY BE UPDATED AND DELIMITED FROM TIME TO TIME BY
REGULATIONS OF THE SECRETARY.
(3) THE TERMS UNDER SUBSECTION (A)(5) SHALL BE DEFINED IN
ACCORDANCE WITH THE FAIR LABOR STANDARDS ACT OF 1938 AND 29 CFR
PT. 541, AS AMENDED, EXCEPT AS OTHERWISE PROVIDED UNDER THIS ACT
OR UPDATED AND DELIMITED FROM TIME TO TIME BY REGULATIONS OF THE
SECRETARY AFTER THE EFFECTIVE DATE OF THIS SECTION.
SECTION 4. THIS ACT SHALL TAKE EFFECT IN 90 DAYS.
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