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PRINTER'S NO. 786
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
743
Session of
2023
INTRODUCED BY LAUGHLIN AND HAYWOOD, MAY 31, 2023
REFERRED TO LABOR AND INDUSTRY, MAY 31, 2023
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 and for minimum
wages.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 3(d) and 4(a) of the act of January 17,
1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, are
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
allowances as may be permitted by regulations of the secretary
under section 9.
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"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 forty percent of the cash wage required to be paid the
employe [on the date immediately prior to the effective date of
this subparagraph] under section 4; 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 received by the employe. The previous
sentence shall not apply with respect to any tipped employe
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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.
* * *
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
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January 1, 2007.
(8) Seven dollars fifteen cents ($7.15) an hour beginning
July 1, 2007.
(9) Eleven dollars ($11) an hour beginning January 1, 2024.
(10) Thirteen dollars ($13) an hour beginning January 1,
2025.
(11) Fifteen dollars ($15) an hour beginning January 1,
2026, adjusted for inflation in subsequent fiscal years by an
amount not to exceed an annual cost-of-living adjustment
calculated by the secretary by applying any upward percentage
change in the Consumer Price Index , or an upward percentage
increase of three percent, whichever is less, i mmediately prior
to the date the adjustment is due to take effect. The secretary
shall, within ten days following any determination for
adjustment under this paragraph, transmit notice to the
Legislative Reference Bureau for publication in the next
available issue of the Pennsylvania Bulletin.
* * *
Section 2. All regulations and parts of regulations are
abrogated to the extent of any inconsistency with the provisions
of this act.
Section 3. This act shall take effect in 60 days.
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