HB 1150 — An Act amending the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, further providing for definitions, for minimum wages and for preemption.

PRINTER'S NO.   1241

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1150
                                               Session of
                                                 2025

     INTRODUCED BY GREEN, KHAN, MADDEN, PIELLI, HOHENSTEIN, MADSEN,
        OTTEN, McNEILL, WAXMAN, PROBST, GIRAL, BOYD, RABB, MAYES,
        KAZEEM, HILL-EVANS, SANCHEZ, HADDOCK, MALAGARI, FIEDLER,
        CEPEDA-FREYTIZ, RIVERA, DONAHUE, KENYATTA, FREEMAN, CIRESI,
        WARREN, SHUSTERMAN, PROKOPIAK, WEBSTER, CERRATO, SCOTT,
        CURRY, DALEY, POWELL, KINKEAD, T. DAVIS, ISAACSON, O'MARA,
        K.HARRIS, DOUGHERTY, SCHLOSSBERG, HANBIDGE, N. NELSON,
        NEILSON AND BELLMON, APRIL 3, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 3, 2025


                                     AN ACT
 1   Amending the act of January 17, 1968 (P.L.11, No.5), entitled
 2      "An act establishing a fixed minimum wage and overtime rates
 3      for employes, with certain exceptions; providing for minimum
 4      rates for learners and apprentices; creating a Minimum Wage
 5      Advisory Board and defining its powers and duties; conferring
 6      powers and imposing duties upon the Department of Labor and
 7      Industry; imposing duties on employers; and providing
 8      penalties," further providing for definitions, for minimum
 9      wages and for preemption.
10      The General Assembly of the Commonwealth of Pennsylvania
11   hereby enacts as follows:
12      Section 1.    Sections 3(d), 4(a) and 14.1 of the act of
13   January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act
14   of 1968, are amended to read:
15      Section 3.    Definitions.--As used in this act:
16      * * *
17      (d)   "Wages" mean compensation due to any employe by reason
18   of his or her employment, payable in legal tender of the United
 1   States or checks on banks convertible into cash on demand at
 2   full face value, subject to such deductions, charges or
 3   allowances as may be permitted by regulations of the secretary
 4   under section 9.
 5      "Wage" paid to any employe includes the reasonable cost, as
 6   determined by the secretary, to the employer for furnishing such
 7   employe with board, lodging, or other facilities, if such board,
 8   lodging, or other facilities are customarily furnished by such
 9   employer to his or her employes: Provided, That the cost of
10   board, lodging, or other facilities shall not be included as a
11   part of the wage paid to any employe to the extent it is
12   excluded therefrom under the terms of a bona fide collective-
13   bargaining agreement applicable to the particular employe:
14   Provided, further, That the secretary is authorized to determine
15   the fair value of such board, lodging, or other facilities for
16   defined classes of employes and in defined areas, based on
17   average cost to the employer or to groups of employers similarly
18   situated, or average value to groups of employes, or other
19   appropriate measures of fair value. Such evaluations, where
20   applicable and pertinent, shall be used in lieu of actual
21   measure of cost in determining the wage paid to any employe.
22      In determining the hourly wage an employer is required to pay
23   a tipped employe, the amount paid such employe by his or her
24   employer shall be an amount equal to: (i) the cash wage paid the
25   employe which for the purposes of the determination shall be not
26   less than the cash wage [required to be paid the employe on the
27   date immediately prior to the effective date of this
28   subparagraph;] of five dollars ($5.00) an hour after June 30,
29   2025, six dollars and twenty-five cents ($6.25) an hour after
30   December 31, 2025, seven dollars and fifty cents ($7.50) an hour

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 1   after June 30, 2026, eight dollars and seventy-five cents
 2   ($8.75) an hour after December 31, 2026, ten dollars ($10.00) an
 3   hour after June 30, 2027, eleven dollars and twenty-five cents
 4   ($11.25) an hour after December 31, 2027, twelve dollars and
 5   fifty cents ($12.50) an hour after June 30, 2028, and thirteen
 6   dollars and seventy-five cents ($13.75) an hour after December
 7   31, 2029, through June 30, 2029; and (ii) an additional amount
 8   on account of the tips received by the employe which is equal to
 9   the difference between the wage specified in subparagraph (i)
10   and the wage in effect under section 4 of this act. The
11   additional amount on account of tips may not exceed the value of
12   tips actually received by the employe. The previous sentence
13   shall not apply with respect to any tipped employe unless:
14      (1)   Such employe has been informed by the employer of the
15   provisions of this subsection;
16      (2)   All tips received by such employe have been retained by
17   the employe and shall not be surrendered to the employer to be
18   used as wages to satisfy the requirement to pay the current
19   hourly minimum rate in effect; where the gratuity is added to
20   the charge made by the establishment, either by the management,
21   or by the customer, the gratuity shall become the property of
22   the employe; except that this subsection shall not be construed
23   to prohibit the pooling of tips among employes who customarily
24   and regularly receive tips. Effective July 1, 2029, an employer
25   is required to pay a tipped employe the full minimum wage in
26   effect under section 4 of this act. In addition, all gratuities
27   received by such employe or added to the charge made by the
28   establishment, either by the management or by the customer,
29   shall become the property of the employe and shall not be used
30   by the employer as wages to satisfy the requirement to pay the

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 1   current hourly minimum rate in effect. Nothing in this
 2   definition shall be construed to prohibit the pooling of tips
 3   among employes who customarily and regularly receive tips,
 4   however an employer may not keep any gratuities received by an
 5   employe for any purpose, including allowing managers or
 6   supervisors to keep any portion of an employe's gratuities.
 7      * * *
 8      Section 4.    Minimum Wages.--Except as may otherwise be
 9   provided under this act:
10      (a)    Every employer shall pay to each of his or her employes
11   wages for all hours worked at a rate of not less than:
12      (1)    Two dollars sixty-five cents ($2.65) an hour upon the
13   effective date of this amendment.
14      (2)    Two dollars ninety cents ($2.90) an hour during the year
15   beginning January 1, 1979.
16      (3)    Three dollars ten cents ($3.10) an hour during the year
17   beginning January 1, 1980.
18      (4)    Three dollars thirty-five cents ($3.35) an hour after
19   December 31, 1980.
20      (5)    Three dollars seventy cents ($3.70) an hour beginning
21   February 1, 1989.
22      (6)    Five dollars fifteen cents ($5.15) an hour beginning
23   September 1, 1997.
24      (7)    Six dollars twenty-five cents ($6.25) an hour beginning
25   January 1, 2007.
26      (8)    Seven dollars fifteen cents ($7.15) an hour beginning
27   July 1, 2007.
28      (9)    Fifteen dollars ($15) an hour beginning January 1, 2026.
29      (10)    Beginning January 1, 2027, and each January 1
30   thereafter, the minimum wage shall be increased by an annual

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 1   cost-of-living adjustment calculated by the secretary using the
 2   percentage change in the Consumer Price Index for All Urban
 3   Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and
 4   Maryland area. In calculating the adjustment, the secretary
 5   shall use the most recent twelve-month period for which figures
 6   have been officially reported by the United States Department of
 7   Labor, Bureau of Labor Statistics. At least sixty days prior to
 8   the date the adjustment is due to take effect, the percentage
 9   increase and the minimum wage amount, rounded to the nearest
10   multiple of five cents (5¢), shall be determined by the
11   secretary. The secretary shall, within ten days following the
12   determination, transmit a notice of the determination to the
13   Legislative Reference Bureau for publication in the next
14   available issue of the Pennsylvania Bulletin.
15      * * *
16      Section 14.1.   Preemption.--(a)   [Except as set forth in
17   subsection (b), this act shall preempt and supersede any local
18   ordinance or rule concerning the subject matter of this act.
19      (b)   This section does not prohibit local regulation pursuant
20   to an ordinance which was adopted by a municipality prior to
21   January 1, 2006, and which remained in effect on January 1,
22   2006.] Notwithstanding any other provision of law, a
23   municipality shall be permitted to pass local ordinances or
24   rules regulating the minimum wage for that municipality. Nothing
25   in this act shall permit a municipality to pass a wage lower
26   than the minimum wage as required by the Commonwealth of
27   Pennsylvania, or that are required under section 4 of this act
28   and 29 U.S.C. Ch. 8 (relating to fair labor standards).
29      (b)   A municipality that adopts a minimum wage ordinance or
30   other measure may adopt provisions for the local enforcement of

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 1   the ordinance or measure, including enforcement by private
 2   parties. Nothing in this section shall preclude the secretary
 3   from enforcing the provisions of this act.
 4      (c)   As used in this section, the following words and phrases
 5   shall have the meanings given to them in this subsection unless
 6   the context clearly indicates otherwise:
 7      "Municipality" means a county, city, borough, incorporated
 8   town, township, home rule municipality, optional plan
 9   municipality or optional charter municipality.
10      Section 2.    This act shall take effect as follows:
11            (1)   The amendment of section 3(d) of the act shall take
12      effect January 1, 2026.
13            (2)   This section shall take effect immediately.
14            (3)   The remainder of this act shall take effect in 60
15      days.




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