PHILADELPHIA - Pennsylvania's new minimum wage and tip regulations take effect on Friday (AUG 5th, 2022). If you're working for a restaurant, bar, or nightclub, you may be wondering whether this is a good time to update your pay scale. These regulations will help protect tipped workers, who are often paid less than minimum wage. Previously, employers could pay tipped workers as little as $2.83 an hour, but new regulations will raise the tip threshold from $30 a month to $135 a month.
Pennsylvania's Minimum-Wage and Tip Regulations
Unlike other states, Pennsylvania will no longer deduct processing fees from employees' tips. These fees range from 1.5% to 3.5%. Under the new rules, employers must pay the fee if they want to keep the tips. The employer must reimburse the employee in full if the tip amount exceeds the state minimum wage.
The new rule will make it difficult for employers to pay workers less than the minimum wage in Pennsylvania. The law will also limit tip pooling and prevent employers from deducting credit card transaction fees from workers' tips. Pennsylvania's minimum-wage and tip regulations will become more consistent with federal regulations. However, some workers are concerned that $7.25 per hour is not a livable wage for most people.
According to the new rules, employers must not lower employees' hourly rates who receive tips below the $7.25 state minimum wage. Employers cannot reduce an employee's hourly rate below the state minimum wage, which is $7.25 per hour. It's also important to note that tip tips are calculated based on a 40-hour work week, so the maximum tip amount is $135 per month. For more information on the new rules, visit the PA Department of Labor website.