PRINTER'S NO. 868

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

12

Session of

2023

INTRODUCED BY TARTAGLIONE, KANE, KEARNEY, FONTANA, COLLETT,

DILLON, HUGHES, CAPPELLETTI AND HAYWOOD, JUNE 14, 2023

REFERRED TO LABOR AND INDUSTRY, JUNE 14, 2023

powers and imposing duties upon the Department of Labor and

Industry; imposing duties on employers; and providing

penalties," further providing for definitions and for minimum

wages; providing for gratuities; further providing for

enforcement and rules and regulations, for penalties and for

civil actions; repealing provisions relating to preemption;

and providing for local option and for taxpayer savings and

reinvestment.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

part of the wage paid to any employe to the extent it is

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

under section 4 of this act. The additional amount on 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

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

* * *

Section 2. Section 4(a) of the act is amended by adding a

paragraph 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) Fifteen dollars ($15) an hour beginning January 1, 2024.

Each succeeding January 1 thereafter, the minimum wage shall be

increased by an annual cost-of-living adjustment calculated by

period for which figures have been officially reported by the

United States Department of Labor, Bureau of Labor Statistics.

At least sixty days prior to the date the adjustment is due to

take effect, the percentage increase and the minimum wage

amount, rounded to the nearest multiple of five cents (5¢),

shall be determined by the secretary. The secretary shall,

within ten days following the determination, forward a notice of

the determination to the Legislative Reference Bureau for

Bulletin. If in a year the increase to the minimum wage does not

property of the employe who received the voluntary monetary

contribution from a guest, patron or customer for services

rendered. An employer shall not take a gratuity or a part of a

gratuity received by an employe from a guest, customer or

patron.

(b) An employer that accepts payment of a gratuity by credit

card shall pay the employe the full amount of the gratuity that

the guest, customer or patron indicated on the credit card slip

without a deduction for any credit card processing fees or costs

that may be charged to the employer by the credit card company.

Section 4. Sections 9, 12 and 13 of the act are amended to

read:

Section 9. Enforcement; Rules and Regulations.--[The

secretary shall enforce this act.] (a) The secretary shall make

and, from time to time, revise regulations, with the assistance

of the board, when requested by the secretary, which shall be

deemed appropriate to carry out the purposes of this act and to

safeguard the minimum wage rates thereby established. Such

defining and governing bona fide executive, administrative, or

services customarily furnished by employers to employes;

allowances for gratuities; or allowances for such other special

conditions or circumstances which may be incidental to a

particular employer-employe relationship.

(b) The secretary shall have the authority to investigate

possible violations of this act and to assess administrative

penalties under section 12.

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

sentenced to pay a fine of not less than [five hundred dollars

($500)] one thousand five hundred dollars ($1,500) nor more than

[one thousand dollars ($1,000)] three thousand dollars ($3,000),

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.

(b) Any employer or the officer or agent of any corporation

who pays or agrees to pay any employe less than the rates

thereof in a summary proceeding, be sentenced to pay a fine of

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. 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.

(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)] three hundred dollars ($300) nor

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 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

was entitled under this act and regulations issued thereunder,

employer less than the minimum wages provided by section 4 or by

any regulation issued thereunder and the employer shall be

required to pay the cost and such reasonable attorney's fees as

may be allowed by the court.

(c) In an action brought under this section, whether brought

by the employe or by the secretary, where there is a finding of

a violation by the employer under this act, the employer shall

be liable for any fees and costs associated with enforcement of

this act and liquidated damages in an amount equal to the wages

or overtime compensation owed to the employe unless the employer

[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 6. The act is amended by adding sections to read:

provision of law, a municipality may not adopt a local ordinance

or regulation providing for a minimum wage greater than the wage

provided under section 4 unless:

(1) the municipality submits a declaration of its intent to

set a greater minimum wage policy to the secretary; and

(2) a period of ninety days has lapsed since the submission

of intent to the secretary.

(b) If a municipality fulfills the conditions of subsection

(a), a municipality that adopts an ordinance or regulation

providing for a greater minimum wage than the wage provided

under section 4 may also adopt provisions for the local

municipality will adopt to effectuate the withdrawal. The

following shall apply:

(1) All prior ordinances or regulations or parts of

ordinances or regulations or any prior acts taken by the

municipality to set a greater minimum wage than provided under

section 4 shall be repealed by the adoption of the ordinance to

withdraw.

(2) After withdrawal, nothing shall prohibit a municipality

from subsequently submitting a declaration of intent to set a

greater minimum wage policy under subsection (a).

(3) After withdrawal, the municipality shall comply with all

provisions under this act.

(1) Authorize a municipality to adopt a wage lower than the

township, home rule municipality, optional plan municipality or

optional charter municipality.

Section 14.3. Taxpayer Savings and Reinvestment.-- (a) One

year after the effective date of section 4(a)(9) and after each

subsequent yearly increase to the minimum wage thereafter, the

that will be saved from the increase of wages to individuals

thereby making the individuals ineligible for programs under the

Department of Human Services. The Secretary of Human Services

shall:

(1) Publish the amount of savings on the publicly accessible