HOUSE AMENDED PRIOR PRINTER'S NOS. 1492, 1885, 1887, PRINTER'S NO. 1973 1913, 1957
No. 1090 Session of 2006
INTRODUCED BY TARTAGLIONE, HUGHES, COSTA, FERLO, FONTANA, FUMO, KASUNIC, KITCHEN, LAVALLE, LOGAN, MELLOW, MUSTO, O'PAKE, STACK, STOUT, WASHINGTON, A. WILLIAMS, C. WILLIAMS, WOZNIAK, BOSCOLA, BROWNE, CONTI, PILEGGI, RAFFERTY AND TOMLINSON, JANUARY 31, 2006
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 30, 2006
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," giving effect to Federal changes in wage rates; 9 providing for preemption; and making editorial changes. 10 AMENDING THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), ENTITLED <-- 11 "AN ACT ESTABLISHING A FIXED MINIMUM WAGE AND OVERTIME RATES 12 FOR EMPLOYES, WITH CERTAIN EXCEPTIONS; PROVIDING FOR MINIMUM 13 RATES FOR LEARNERS AND APPRENTICES; CREATING A MINIMUM WAGE 14 ADVISORY BOARD AND DEFINING ITS POWERS AND DUTIES; CONFERRING 15 POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF LABOR AND 16 INDUSTRY; IMPOSING DUTIES ON EMPLOYERS; AND PROVIDING 17 PENALTIES," GIVING EFFECT TO FEDERAL CHANGES IN WAGE RATES; 18 PROVIDING FOR PREEMPTION; AND MAKING EDITORIAL CHANGES. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 Section 1. Section 3 of the act of January 17, 1968 (P.L.11, <-- 22 No.5), known as The Minimum Wage Act of 1968, amended December 23 15, 1988 (P.L.1232, No.150), and December 21, 1998 (P.L.1290,
1 No.168), is amended to read: 2 Section 3. Definitions.--As used in this act: 3 (a) "Secretary" means the Secretary of Labor and Industry. 4 (b) "Department" means the Department of Labor and Industry. 5 (c) "Board" means the Minimum Wage Advisory Board created by 6 this act. 7 (d) "Wages" mean compensation due to any employe by reason 8 of his or her employment, payable in legal tender of the United 9 States or checks on banks convertible into cash on demand at 10 full face value, subject to such deductions, charges or 11 allowances as may be permitted by regulations of the secretary 12 under section 9. 13 "Wage" paid to any employe includes the reasonable cost, as 14 determined by the secretary, to the employer for furnishing such 15 employe with board, lodging, or other facilities, if such board, 16 lodging, or other facilities are customarily furnished by such 17 employer to his or her employes: Provided, That the cost of 18 board, lodging, or other facilities shall not be included as a 19 part of the wage paid to any employe to the extent it is 20 excluded therefrom under the terms of a bona fide collective- 21 bargaining agreement applicable to the particular employe: 22 Provided, further, That the secretary is authorized to determine 23 the fair value of such board, lodging, or other facilities for 24 defined classes of employes and in defined areas, based on 25 average cost to the employer or to groups of employers similarly 26 situated, or average value to groups of employes, or other 27 appropriate measures of fair value. Such evaluations, where 28 applicable and pertinent, shall be used in lieu of actual 29 measure of cost in determining the wage paid to any employe. 30 In determining the hourly wage an employer is required to pay 20060S1090B1973 - 2 -
1 a tipped employe, the amount paid such employe by his or her 2 employer shall be an amount equal to: (i) the cash wage paid the 3 employe which for the purposes of the determination shall be not 4 less than the cash wage required to be paid the employe on the 5 date immediately prior to the effective date of this 6 subparagraph; and (ii) an additional amount on account of the 7 tips received by the employe which is equal to the difference 8 between the wage specified in subparagraph (i) and the wage in 9 effect under section 4 of this act. The additional amount on 10 account of tips may not exceed the value of tips actually 11 received by the employe. The previous sentence shall not apply 12 with respect to any tipped employe unless: 13 (1) Such employe has been informed by the employer of the 14 provisions of this subsection; 15 (2) All tips received by such employe have been retained by 16 the employe and shall not be surrendered to the employer to be 17 used as wages to satisfy the requirement to pay the current 18 hourly minimum rate in effect; where the gratuity is added to 19 the charge made by the establishment, either by the management, 20 or by the customer, the gratuity shall become the property of 21 the employe; except that this subsection shall not be construed 22 to prohibit the pooling of tips among employes who customarily 23 and regularly receive tips. 24 (e) "Occupation" means any industry, trade, business, 25 service, or employment or class or group thereof in which 26 individuals are gainfully employed. 27 (f) "Employe" includes to suffer or to permit to work. 28 (g) "Employer" includes any individual, partnership, 29 association, corporation, business trust, or any person or group 30 of persons acting, directly or indirectly, in the interest of an 20060S1090B1973 - 3 -
1 employer in relation to any employe. 2 (h) "Employe" includes any individual employed by an 3 employer. 4 (i) "Gratuities" means voluntary, monetary contributions 5 received by an employe from a guest, patron or customer for 6 services rendered. 7 Section 2. Section 4 of the act, amended December 10, 1974 8 (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15, 9 1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is 10 amended to read: 11 Section 4. Minimum Wages.--Except as may otherwise be 12 provided under this act: 13 (a) Every employer shall pay to each of his or her employes 14 wages for all hours worked at a rate of not less than: 15 (1) Two dollars sixty-five cents ($2.65) an hour upon the 16 effective date of this amendment. 17 (2) Two dollars ninety cents ($2.90) an hour during the year 18 beginning January 1, 1979. 19 (3) Three dollars ten cents ($3.10) an hour during the year 20 beginning January 1, 1980. 21 (4) Three dollars thirty-five cents ($3.35) an hour after 22 December 31, 1980. 23 (5) Three dollars seventy cents ($3.70) an hour beginning 24 February 1, 1989[, and thereafter]. 25 (6) Five dollars fifteen cents ($5.15) an hour beginning 26 September 1, 1997. 27 (7) Six dollars twenty-five cents ($6.25) an hour beginning 28 January 1, 2007. 29 (8) Seven dollars fifteen cents ($7.15) an hour beginning 30 July 1, 2007. 20060S1090B1973 - 4 -
1 (a.1) If the minimum wage set forth in the Fair Labor 2 Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.) 3 is increased above [three dollars thirty-five cents ($3.35) an 4 hour] the minimum wage required under this section, the minimum 5 wage required under this section shall be increased by the same 6 amounts and effective the same date as the increases under the 7 Fair Labor Standards Act, and the provisions of subsection (a) 8 are suspended to the extent they differ from those set forth 9 under the Fair Labor Standards Act. 10 (b) The secretary, to the extent necessary to prevent 11 curtailment of employment opportunities, shall by regulations 12 provide for the employment of learners and students, under 13 special certificates at wages lower than the minimum wage 14 applicable under this section, and subject to such limitations 15 as to number, proportion and length of service as the secretary 16 shall prescribe: Provided, That the minimum wage prescribed 17 under this subsection (b) shall not be less than eighty-five 18 percent of the otherwise applicable wage rate in effect under 19 section 4. A special certificate issued under this subsection 20 shall provide that for six or less students for whom it is 21 issued shall, except during vacation periods, be employed on a 22 part-time basis and not in excess of twenty hours in any 23 workweek at a sub-minimum rate. 24 In the case of an employer who intends to employ seven or 25 more students, at a sub-minimum rate, the secretary may issue a 26 special certificate only if the employer certifies to the 27 secretary that employment of such students will not create a 28 substantial probability of reducing the full-time employment 29 opportunities for other workers. 30 (c) Employes shall be paid for overtime not less than one 20060S1090B1973 - 5 -
1 and one-half times the employe's regular rate as prescribed in 2 regulations promulgated by the secretary: Provided, That 3 students employed in seasonal occupations as defined and 4 delimited by regulations promulgated by the secretary may, by 5 such regulations, be excluded from the overtime provisions of 6 this act: And provided further, That the secretary shall 7 promulgate regulations with respect to overtime subject to the 8 limitations that no pay for overtime in addition to the regular 9 rate shall be required except for hours in excess of forty hours 10 in a workweek. 11 (d) An employe whose earning capacity is impaired by 12 physical or mental deficiency or injury may be paid less than 13 the applicable minimum wage if either a license specifying a 14 wage rate commensurate with the employe's productive capacity 15 has been obtained by the employer from the secretary or a 16 Federal certificate is obtained under section 14(c) of the Fair 17 Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et 18 seq.). A license obtained from the secretary shall be granted 19 only upon joint application of employer and employe. 20 (e) In lieu of the minimum wage prescribed in subsection (a) 21 and section 5(c) and notwithstanding subsections (b) and (d), an <-- 22 employer may, during the first sixty calendar days when an 23 employe under the age of twenty years is initially employed, pay 24 the employe training wages at a rate of not less than the 25 minimum wage set forth in section 6(a) of the Fair Labor 26 Standards Act (29 U.S.C. § 206(a)). A person employed at the 27 training wage under this subsection shall be informed of the 28 amount of the training wage and the right to receive the full 29 minimum wage, or a higher wage, upon completion of the training 30 period. No employer may take any action to displace existing 20060S1090B1973 - 6 -
1 employes, including partial displacements such as reduction in 2 the hours, wages or employment benefits of existing employes, 3 for purposes of hiring individuals at the training wage 4 authorized by this subsection. 5 Section 3. Section 5 of the act, amended December 10, 1974 6 (P.L.916, No.303), July 1, 1978 (P.L.735, No.135), December 15, 7 1988 (P.L.1232, No.150), and July 9, 1990 (P.L.348, No.79), is 8 amended to read: 9 Section 5. Exemptions.--(a) Employment in the following 10 classifications shall be exempt from both the minimum wage and 11 overtime provisions of this act: 12 (1) Labor on a farm; 13 (2) Domestic services in or about the private home of the 14 employer; 15 (3) Delivery of newspapers to the consumer; 16 (4) In connection with the publication of any weekly, 17 semiweekly, or daily newspaper with a circulation of less than 18 four thousand, the major part of which circulation is within the 19 county where published or counties contiguous thereto; 20 (5) In a bona fide executive, administrative, or 21 professional capacity (including any employe employed in the 22 capacity of academic administrative personnel or teacher in 23 elementary or secondary schools) or in the capacity of outside 24 salesman (as such terms are defined and delimited from time to 25 time by regulations of the secretary, except that an employe of 26 a retail or service establishment shall not be excluded from the 27 definition of employe employed in a bona fide executive or 28 administrative capacity because of the number of hours in his or 29 her workweek which he or she devotes to activities not directly 30 or closely related to the performance of executive 20060S1090B1973 - 7 -
1 administrative activities, if less than forty percent of his or 2 her hours worked in the workweek are devoted to such 3 activities); 4 (6) In the activities of an educational, charitable, 5 religious or nonprofit organization where the employer-employe 6 relationship does not in fact exist or where the services are 7 rendered to such organization gratuitously; 8 (7) In seasonal employment, if the employe is under eighteen 9 years of age, or if a student under twenty-four years of age, by 10 a nonprofit health or welfare agency engaged in activities 11 dealing with handicapped or exceptional children or by a 12 nonprofit day or resident seasonal recreational camp for campers 13 under the age of eighteen years, which operates for a period of 14 less than three months in any one year; 15 (9) In employment by an establishment which is a public 16 amusement or recreational establishment, organized camp, or 17 religious or nonprofit educational conference center, if (i) it 18 does not operate for more than seven months in any calendar 19 year, or (ii) during the preceding calendar year, its average 20 receipts for any six months of such year were not more than 21 thirty-three and one-third percent of its average receipts for 22 the other six months of such year; 23 (10) Golf caddy; 24 (11) In employment as a switchboard operator employed by an 25 independently owned public telephone company which has not more 26 than seven hundred and fifty stations; 27 (12) Employes not subject to civil service laws who hold 28 elective office or are on the personal staff of such an 29 officeholder, are immediate advisers to him or her, or are 30 appointed by him or her to serve on a policy-making level. 20060S1090B1973 - 8 -
1 (b) Employment in the following classifications shall be 2 exempt from the overtime provisions of this act: 3 (1) Seaman; 4 (2) Any salesman, partsman, or mechanic primarily engaged in 5 selling and servicing automobiles, trailers, trucks, farm 6 implements, or aircraft if employed by a nonmanufacturing 7 establishment primarily engaged in the business of selling such 8 vehicles to ultimate purchasers; 9 (3) Any driver employed by an employer engaged in the 10 business of operating taxicabs; 11 (4) Any employe employed as an announcer, news editor, or 12 chief engineer by a radio or television station, the major 13 studio of which is located (i) in a city or town of one hundred 14 thousand population or less, according to the latest available 15 decennial census figures as compiled by the Bureau of the 16 Census, except where such city or town is part of a standard 17 metropolitan statistical area, as defined and designated by the 18 Bureau of the Budget, which has a total population in excess of 19 one hundred thousand, or (ii) in a city or town of twenty-five 20 thousand population or less, which is part of such an area but 21 is at least forty airline miles from the principal city in such 22 area; 23 (5) Any employe engaged in the processing of maple sap into 24 sugar (other than refined sugar) or syrup; 25 (6) Employment by an establishment which is a motion picture 26 theatre; 27 (7) Any employe of a motor carrier with respect to whom the 28 Federal Secretary of Transportation has power to establish 29 qualifications and maximum hours of service under 49 U.S.C. § 30 3102(b)(1) and (2) (relating to requirements for qualifications, 20060S1090B1973 - 9 -
1 hours of service, safety and equipment standards). 2 (c) (1) Notwithstanding the provisions of subsection (a)(7) 3 and (8), an employer unless otherwise exempt from the minimum 4 wage provisions of section 4(a)(6) whose employe complement is 5 composed of the equivalent of ten full-time employes to be 6 calculated on a forty-hour workweek shall pay: 7 (i) Five dollars sixty-five cents ($5.65) an hour beginning 8 January 1, 2007. 9 (ii) Six dollars sixty-five cents ($6.65) an hour beginning 10 July 1, 2007. 11 (2) Such employer shall pay the full amount of the minimum 12 wage under section 4(a)(8) beginning July 1, 2008. 13 Section 4. Sections 6, 7, 8 and 9 of the act are amended to 14 read: 15 Section 6. Minimum Wage Advisory Board.--(a) There is 16 hereby created in the Department of Labor and Industry a Minimum 17 Wage Advisory Board consisting of nine members to be appointed 18 by the secretary to assist him or her in carrying out his or her 19 duties under this act, and for the purpose of conducting public 20 hearings at the request of the secretary in order to recommend 21 rules and regulations for the occupations covered within this 22 act. 23 (b) Of the nine members, three shall be representatives of 24 an established recognized association of labor organizations, 25 three shall be representatives of an established recognized 26 association of employers and three shall be members from the 27 general public. The Secretary of Labor and Industry or his or 28 her designated representative shall be chairman of the board. 29 (c) Each member of the board shall receive compensation of 30 thirty dollars ($30) per day plus necessary expenses, for each 20060S1090B1973 - 10 -
1 day actually spent in the performance of his or her duties. No 2 employe of the Commonwealth shall receive any additional 3 compensation or expenses on account of his or her services under 4 this act. 5 (d) At least ten days' public notice shall be given in the 6 manner prescribed by the board prior to any public hearing of 7 the board. Five members of the board shall constitute a quorum. 8 (e) The board shall have the power and duty to: 9 (1) consult with the secretary concerning any matter arising 10 under the administration of this act and advise and assist him 11 or her in carrying out the duties prescribed for him or her by 12 section 8 of this act; 13 (2) conduct public hearings at the request of the secretary 14 in order to develop rules and regulations in accordance with 15 section 9 of this act, in which hearings due process of law 16 shall be observed and any person may appear and be heard or file 17 statements in support of his or her position; 18 (3) the board shall submit its report including 19 recommendations for the promulgation of rules and regulations to 20 the secretary, who shall within thirty days thereafter accept 21 such report or refer it to the board for further consideration 22 and consultation. If the report is referred to the board for 23 further consideration, the secretary shall, in consultation with 24 the board, modify, amend, or otherwise act upon such report 25 within sixty days thereafter. Rules and regulations developed 26 and promulgated hereunder shall be published and any person 27 aggrieved thereby, shall have a right of review as set forth in 28 section 10 of this act. 29 Section 7. Investigations.--(a) The secretary or his or her 30 representative shall have authority to investigate and ascertain 20060S1090B1973 - 11 -
1 the wages of persons employed in any occupation in the 2 Commonwealth; enter and inspect the place of business or 3 employment of any employer of employes in any occupation in the 4 Commonwealth at any reasonable time, for the purpose of 5 examining and inspecting any records of any such employer that 6 in any way relate to wages, hours, or other conditions of 7 employment of any such employes; copy any or all of such records 8 as [he] the secretary or [his] an authorized representative may 9 deem necessary or appropriate; require from such employer full 10 and accurate statements in writing, at such times as the 11 secretary may deem necessary, of the wages paid to all employes 12 in his or her employment; and interrogate such persons for the 13 purpose of ascertaining whether the provisions of this act and 14 the regulations issued thereunder have been and are being 15 complied with. 16 Section 8. Duty of Employer.--Every employer of employes 17 shall keep a true and accurate record of the hours worked by 18 each employe and the wages paid to each, and shall furnish to 19 the secretary or his or her duly authorized representative, upon 20 demand, a sworn statement of the same. Such records shall be 21 open to inspection by any duly authorized representative of the 22 secretary at any reasonable time and shall be preserved for a 23 period of three years. Every employer subject to this act shall 24 keep a summary of this act and any regulations issued thereunder 25 applicable to him or her, posted in a conspicuous place where 26 employes normally pass and can read it. Employers shall, upon 27 request, be furnished copies of such summaries without charge. 28 Employers shall permit any duly authorized representative of the 29 secretary to interrogate any employe in the place of employment 30 and during work hours with respect to the wages paid to and the 20060S1090B1973 - 12 -
1 hours worked by such employe or other employes. 2 Section 9. Enforcement; Rules and Regulations.--The 3 secretary shall enforce this act. [He] The secretary shall make 4 and, from time to time, revise regulations, with the assistance 5 of the board, when requested by [him] the secretary, which shall 6 be deemed appropriate to carry out the purposes of this act and 7 to safeguard the minimum wage rates thereby established. Such 8 regulations may include, but are not limited to, regulations 9 defining and governing bona fide executive, administrative, or 10 professional employes and outside [salesmen] sales persons, 11 learners and apprentices, their number, proportion, length of 12 learning period, and other working conditions; handicapped 13 workers; part-time pay; overtime standards; bonuses; allowances 14 for board, lodging, apparel, or other facilities or services 15 customarily furnished by employers to employes; allowances for 16 gratuities; or allowances for such other special conditions or 17 circumstances which may be incidental to a particular employer- 18 employe relationship. 19 Section 5. Section 12 of the act, amended December 10, 1974 20 (P.L.916, No.303), is amended to read: 21 Section 12. Penalties.--(a) Any employer and his or her 22 agent, or the officer or agent of any corporation, who 23 discharges or in any other manner discriminates against any 24 employe because such employe has testified or is about to 25 testify before the secretary or his or her representative in any 26 investigation or proceeding under or related to this act, or 27 because such employer believes that said employe may so testify 28 shall, upon conviction thereof in a summary proceeding, be 29 sentenced to pay a fine of not less than five hundred dollars 30 ($500) nor more than one thousand dollars ($1,000), and in 20060S1090B1973 - 13 -
1 default of the payment of such fine and costs, shall be 2 sentenced to imprisonment for not less than ten days nor more 3 than ninety days. 4 (b) Any employer or the officer or agent of any corporation 5 who pays or agrees to pay any employe less than the rates 6 applicable to such employe under this act shall, upon conviction 7 thereof in a summary proceeding, be sentenced to pay a fine of 8 not less than seventy-five dollars ($75) nor more than three 9 hundred dollars ($300) or to undergo imprisonment of not less 10 than ten nor more than sixty days, or both. Each week in which 11 such employe is paid less than the rate applicable to him or her 12 under this act and for each employe who is paid less than the 13 prescribed rate, a separate offense shall be deemed to occur. 14 Any agreement between the employer and the employe to work for 15 less than the applicable wage rate shall be no defense to action 16 by the Commonwealth under this section. 17 (c) Any employer or the officer or agent of any corporation 18 who violates any other provision of this act or of any 19 regulation issued thereunder shall, upon conviction thereof in a 20 summary proceeding, be sentenced to pay a fine of not less than 21 one hundred dollars ($100) nor more than five hundred dollars 22 ($500), and each day of such failure to comply with this act or 23 regulation, shall constitute a separate offense. 24 Section 6. The act is amended by adding a section to read: 25 Section 14.1. Preemption.--(a) Except as set forth in 26 subsection (b), this act shall preempt and supersede any local 27 ordinance or rule concerning the subject matter of this act. 28 (b) This section does not prohibit local regulation pursuant 29 to an ordinance which was adopted by a municipality prior to 30 January 1, 2006, and which remained in effect on January 1, 20060S1090B1973 - 14 -
1 2006. 2 Section 7. All acts and parts of acts are repealed insofar 3 as they are inconsistent with the addition of section 14.1 of 4 the act. 5 Section 8. This act shall apply as follows: 6 (1) The addition of section 14.1 of the act shall not 7 invalidate any ordinance, charter provision, resolution, rule 8 or regulation in effect on the effective date of this 9 section. 10 (2) The following provisions shall apply to contracts 11 entered into or renewed on or after the effective date of 12 this section: 13 (i) The addition of section 14.1 of the act. 14 (ii) Section 7 of this act. 15 Section 9. This act shall take effect immediately. 16 SECTION 1. SECTION 3 OF THE ACT OF JANUARY 17, 1968 (P.L.11, <-- 17 NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, AMENDED DECEMBER 18 15, 1988 (P.L.1232, NO.150), AND DECEMBER 21, 1998 (P.L.1290, 19 NO.168), IS AMENDED TO READ: 20 SECTION 3. DEFINITIONS.--AS USED IN THIS ACT: 21 (A) "SECRETARY" MEANS THE SECRETARY OF LABOR AND INDUSTRY. 22 (B) "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR AND INDUSTRY. 23 (C) "BOARD" MEANS THE MINIMUM WAGE ADVISORY BOARD CREATED BY 24 THIS ACT. 25 (D) "WAGES" MEAN COMPENSATION DUE TO ANY EMPLOYE BY REASON 26 OF HIS OR HER EMPLOYMENT, PAYABLE IN LEGAL TENDER OF THE UNITED 27 STATES OR CHECKS ON BANKS CONVERTIBLE INTO CASH ON DEMAND AT 28 FULL FACE VALUE, SUBJECT TO SUCH DEDUCTIONS, CHARGES OR 29 ALLOWANCES AS MAY BE PERMITTED BY REGULATIONS OF THE SECRETARY 30 UNDER SECTION 9. 20060S1090B1973 - 15 -
1 "WAGE" PAID TO ANY EMPLOYE INCLUDES THE REASONABLE COST, AS 2 DETERMINED BY THE SECRETARY, TO THE EMPLOYER FOR FURNISHING SUCH 3 EMPLOYE WITH BOARD, LODGING, OR OTHER FACILITIES, IF SUCH BOARD, 4 LODGING, OR OTHER FACILITIES ARE CUSTOMARILY FURNISHED BY SUCH 5 EMPLOYER TO HIS OR HER EMPLOYES: PROVIDED, THAT THE COST OF 6 BOARD, LODGING, OR OTHER FACILITIES SHALL NOT BE INCLUDED AS A 7 PART OF THE WAGE PAID TO ANY EMPLOYE TO THE EXTENT IT IS 8 EXCLUDED THEREFROM UNDER THE TERMS OF A BONA FIDE COLLECTIVE- 9 BARGAINING AGREEMENT APPLICABLE TO THE PARTICULAR EMPLOYE: 10 PROVIDED, FURTHER, THAT THE SECRETARY IS AUTHORIZED TO DETERMINE 11 THE FAIR VALUE OF SUCH BOARD, LODGING, OR OTHER FACILITIES FOR 12 DEFINED CLASSES OF EMPLOYES AND IN DEFINED AREAS, BASED ON 13 AVERAGE COST TO THE EMPLOYER OR TO GROUPS OF EMPLOYERS SIMILARLY 14 SITUATED, OR AVERAGE VALUE TO GROUPS OF EMPLOYES, OR OTHER 15 APPROPRIATE MEASURES OF FAIR VALUE. SUCH EVALUATIONS, WHERE 16 APPLICABLE AND PERTINENT, SHALL BE USED IN LIEU OF ACTUAL 17 MEASURE OF COST IN DETERMINING THE WAGE PAID TO ANY EMPLOYE. 18 IN DETERMINING THE HOURLY WAGE AN EMPLOYER IS REQUIRED TO PAY 19 A TIPPED EMPLOYE, THE AMOUNT PAID SUCH EMPLOYE BY HIS OR HER 20 EMPLOYER SHALL BE AN AMOUNT EQUAL TO: (I) THE CASH WAGE PAID THE 21 EMPLOYE WHICH FOR THE PURPOSES OF THE DETERMINATION SHALL BE NOT 22 LESS THAN THE CASH WAGE REQUIRED TO BE PAID THE EMPLOYE ON THE 23 DATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS 24 SUBPARAGRAPH; AND (II) AN ADDITIONAL AMOUNT ON ACCOUNT OF THE 25 TIPS RECEIVED BY THE EMPLOYE WHICH IS EQUAL TO THE DIFFERENCE 26 BETWEEN THE WAGE SPECIFIED IN SUBPARAGRAPH (I) AND THE WAGE IN 27 EFFECT UNDER SECTION 4 OF THIS ACT. THE ADDITIONAL AMOUNT ON 28 ACCOUNT OF TIPS MAY NOT EXCEED THE VALUE OF TIPS ACTUALLY 29 RECEIVED BY THE EMPLOYE. THE PREVIOUS SENTENCE SHALL NOT APPLY 30 WITH RESPECT TO ANY TIPPED EMPLOYE UNLESS: 20060S1090B1973 - 16 -
1 (1) SUCH EMPLOYE HAS BEEN INFORMED BY THE EMPLOYER OF THE 2 PROVISIONS OF THIS SUBSECTION; 3 (2) ALL TIPS RECEIVED BY SUCH EMPLOYE HAVE BEEN RETAINED BY 4 THE EMPLOYE AND SHALL NOT BE SURRENDERED TO THE EMPLOYER TO BE 5 USED AS WAGES TO SATISFY THE REQUIREMENT TO PAY THE CURRENT 6 HOURLY MINIMUM RATE IN EFFECT; WHERE THE GRATUITY IS ADDED TO 7 THE CHARGE MADE BY THE ESTABLISHMENT, EITHER BY THE MANAGEMENT, 8 OR BY THE CUSTOMER, THE GRATUITY SHALL BECOME THE PROPERTY OF 9 THE EMPLOYE; EXCEPT THAT THIS SUBSECTION SHALL NOT BE CONSTRUED 10 TO PROHIBIT THE POOLING OF TIPS AMONG EMPLOYES WHO CUSTOMARILY 11 AND REGULARLY RECEIVE TIPS. 12 (E) "OCCUPATION" MEANS ANY INDUSTRY, TRADE, BUSINESS, 13 SERVICE, OR EMPLOYMENT OR CLASS OR GROUP THEREOF IN WHICH 14 INDIVIDUALS ARE GAINFULLY EMPLOYED. 15 (F) "EMPLOYE" INCLUDES TO SUFFER OR TO PERMIT TO WORK. 16 (G) "EMPLOYER" INCLUDES ANY INDIVIDUAL, PARTNERSHIP, 17 ASSOCIATION, CORPORATION, BUSINESS TRUST, OR ANY PERSON OR GROUP 18 OF PERSONS ACTING, DIRECTLY OR INDIRECTLY, IN THE INTEREST OF AN 19 EMPLOYER IN RELATION TO ANY EMPLOYE. 20 (H) "EMPLOYE" INCLUDES ANY INDIVIDUAL EMPLOYED BY AN 21 EMPLOYER. 22 (I) "GRATUITIES" MEANS VOLUNTARY, MONETARY CONTRIBUTIONS 23 RECEIVED BY AN EMPLOYE FROM A GUEST, PATRON OR CUSTOMER FOR 24 SERVICES RENDERED. 25 SECTION 2. SECTIONS 4 AND 5 OF THE ACT, AMENDED DECEMBER 10, 26 1974 (P.L.916, NO.303), JULY 1, 1978 (P.L.735, NO.135), DECEMBER 27 15, 1988 (P.L.1232, NO.150), AND JULY 9, 1990 (P.L.348, NO.79), 28 ARE AMENDED TO READ: 29 SECTION 4. MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE 30 PROVIDED UNDER THIS ACT: 20060S1090B1973 - 17 -
1 (A) EVERY EMPLOYER SHALL PAY TO EACH OF HIS OR HER EMPLOYES 2 WAGES FOR ALL HOURS WORKED AT A RATE OF NOT LESS THAN: 3 (1) TWO DOLLARS SIXTY-FIVE CENTS ($2.65) AN HOUR UPON THE 4 EFFECTIVE DATE OF THIS AMENDMENT. 5 (2) TWO DOLLARS NINETY CENTS ($2.90) AN HOUR DURING THE YEAR 6 BEGINNING JANUARY 1, 1979. 7 (3) THREE DOLLARS TEN CENTS ($3.10) AN HOUR DURING THE YEAR 8 BEGINNING JANUARY 1, 1980. 9 (4) THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN HOUR AFTER 10 DECEMBER 31, 1980. 11 (5) THREE DOLLARS SEVENTY CENTS ($3.70) AN HOUR BEGINNING 12 FEBRUARY 1, 1989[, AND THEREAFTER]. 13 (6) FIVE DOLLARS FIFTEEN CENTS ($5.15) AN HOUR BEGINNING 14 SEPTEMBER 1, 1997. 15 (7) SIX DOLLARS TWENTY-FIVE CENTS ($6.25) AN HOUR BEGINNING 16 JANUARY 1, 2007. 17 (8) SEVEN DOLLARS FIFTEEN CENTS ($7.15) AN HOUR BEGINNING 18 JULY 1, 2007. 19 (A.1) IF THE MINIMUM WAGE SET FORTH IN THE FAIR LABOR 20 STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET SEQ.) 21 IS INCREASED ABOVE [THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN 22 HOUR] THE MINIMUM WAGE REQUIRED UNDER THIS SECTION, THE MINIMUM 23 WAGE REQUIRED UNDER THIS SECTION SHALL BE INCREASED BY THE SAME 24 AMOUNTS AND EFFECTIVE THE SAME DATE AS THE INCREASES UNDER THE 25 FAIR LABOR STANDARDS ACT, AND THE PROVISIONS OF SUBSECTION (A) 26 ARE SUSPENDED TO THE EXTENT THEY DIFFER FROM THOSE SET FORTH 27 UNDER THE FAIR LABOR STANDARDS ACT. 28 (B) THE SECRETARY, TO THE EXTENT NECESSARY TO PREVENT 29 CURTAILMENT OF EMPLOYMENT OPPORTUNITIES, SHALL BY REGULATIONS 30 PROVIDE FOR THE EMPLOYMENT OF LEARNERS AND STUDENTS, UNDER 20060S1090B1973 - 18 -
1 SPECIAL CERTIFICATES AT WAGES LOWER THAN THE MINIMUM WAGE 2 APPLICABLE UNDER THIS SECTION, AND SUBJECT TO SUCH LIMITATIONS 3 AS TO NUMBER, PROPORTION AND LENGTH OF SERVICE AS THE SECRETARY 4 SHALL PRESCRIBE: PROVIDED, THAT THE MINIMUM WAGE PRESCRIBED 5 UNDER THIS SUBSECTION (B) SHALL NOT BE LESS THAN EIGHTY-FIVE 6 PERCENT OF THE OTHERWISE APPLICABLE WAGE RATE IN EFFECT UNDER 7 SECTION 4. A SPECIAL CERTIFICATE ISSUED UNDER THIS SUBSECTION 8 SHALL PROVIDE THAT FOR SIX OR LESS STUDENTS FOR WHOM IT IS 9 ISSUED SHALL, EXCEPT DURING VACATION PERIODS, BE EMPLOYED ON A 10 PART-TIME BASIS AND NOT IN EXCESS OF TWENTY HOURS IN ANY 11 WORKWEEK AT A SUB-MINIMUM RATE. 12 IN THE CASE OF AN EMPLOYER WHO INTENDS TO EMPLOY SEVEN OR 13 MORE STUDENTS, AT A SUB-MINIMUM RATE, THE SECRETARY MAY ISSUE A 14 SPECIAL CERTIFICATE ONLY IF THE EMPLOYER CERTIFIES TO THE 15 SECRETARY THAT EMPLOYMENT OF SUCH STUDENTS WILL NOT CREATE A 16 SUBSTANTIAL PROBABILITY OF REDUCING THE FULL-TIME EMPLOYMENT 17 OPPORTUNITIES FOR OTHER WORKERS. 18 (C) EMPLOYES SHALL BE PAID FOR OVERTIME NOT LESS THAN ONE 19 AND ONE-HALF TIMES THE EMPLOYE'S REGULAR RATE AS PRESCRIBED IN 20 REGULATIONS PROMULGATED BY THE SECRETARY: PROVIDED, THAT 21 STUDENTS EMPLOYED IN SEASONAL OCCUPATIONS AS DEFINED AND 22 DELIMITED BY REGULATIONS PROMULGATED BY THE SECRETARY MAY, BY 23 SUCH REGULATIONS, BE EXCLUDED FROM THE OVERTIME PROVISIONS OF 24 THIS ACT: AND PROVIDED FURTHER, THAT THE SECRETARY SHALL 25 PROMULGATE REGULATIONS WITH RESPECT TO OVERTIME SUBJECT TO THE 26 LIMITATIONS THAT NO PAY FOR OVERTIME IN ADDITION TO THE REGULAR 27 RATE SHALL BE REQUIRED EXCEPT FOR HOURS IN EXCESS OF FORTY HOURS 28 IN A WORKWEEK. 29 (D) AN EMPLOYE WHOSE EARNING CAPACITY IS IMPAIRED BY 30 PHYSICAL OR MENTAL DEFICIENCY OR INJURY MAY BE PAID LESS THAN 20060S1090B1973 - 19 -
1 THE APPLICABLE MINIMUM WAGE IF EITHER A LICENSE SPECIFYING A 2 WAGE RATE COMMENSURATE WITH THE EMPLOYE'S PRODUCTIVE CAPACITY 3 HAS BEEN OBTAINED BY THE EMPLOYER FROM THE SECRETARY OR A 4 FEDERAL CERTIFICATE IS OBTAINED UNDER SECTION 14(C) OF THE FAIR 5 LABOR STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET 6 SEQ.). A LICENSE OBTAINED FROM THE SECRETARY SHALL BE GRANTED 7 ONLY UPON JOINT APPLICATION OF EMPLOYER AND EMPLOYE. 8 (E) IN LIEU OF THE MINIMUM WAGE PRESCRIBED IN SUBSECTION (A) 9 AND SECTION 5(C) AND NOTWITHSTANDING SUBSECTIONS (B) AND (D), AN <-- 10 EMPLOYER MAY, DURING THE FIRST SIXTY CALENDAR DAYS WHEN AN 11 EMPLOYE UNDER THE AGE OF TWENTY YEARS IS INITIALLY EMPLOYED, PAY 12 THE EMPLOYE TRAINING WAGES AT A RATE OF NOT LESS THAN THE 13 MINIMUM WAGE SET FORTH IN SECTION 6(A) OF THE FAIR LABOR 14 STANDARDS ACT (29 U.S.C. § 206(A)). A PERSON EMPLOYED AT THE 15 TRAINING WAGE UNDER THIS SUBSECTION SHALL BE INFORMED OF THE 16 AMOUNT OF THE TRAINING WAGE AND THE RIGHT TO RECEIVE THE FULL 17 MINIMUM WAGE, OR A HIGHER WAGE, UPON COMPLETION OF THE TRAINING 18 PERIOD. NO EMPLOYER MAY TAKE ANY ACTION TO DISPLACE EXISTING 19 EMPLOYES, INCLUDING PARTIAL DISPLACEMENTS SUCH AS REDUCTION IN 20 THE HOURS, WAGES OR EMPLOYMENT BENEFITS OF EXISTING EMPLOYES, 21 FOR PURPOSES OF HIRING INDIVIDUALS AT THE TRAINING WAGE 22 AUTHORIZED BY THIS SUBSECTION. 23 SECTION 5. EXEMPTIONS.--(A) EMPLOYMENT IN THE FOLLOWING 24 CLASSIFICATIONS SHALL BE EXEMPT FROM BOTH THE MINIMUM WAGE AND 25 OVERTIME PROVISIONS OF THIS ACT: 26 (1) LABOR ON A FARM; 27 (2) DOMESTIC SERVICES IN OR ABOUT THE PRIVATE HOME OF THE 28 EMPLOYER; 29 (3) DELIVERY OF NEWSPAPERS TO THE CONSUMER; 30 (4) IN CONNECTION WITH THE PUBLICATION OF ANY WEEKLY, 20060S1090B1973 - 20 -
1 SEMIWEEKLY, OR DAILY NEWSPAPER WITH A CIRCULATION OF LESS THAN 2 FOUR THOUSAND, THE MAJOR PART OF WHICH CIRCULATION IS WITHIN THE 3 COUNTY WHERE PUBLISHED OR COUNTIES CONTIGUOUS THERETO; 4 (5) IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR 5 PROFESSIONAL CAPACITY (INCLUDING ANY EMPLOYE EMPLOYED IN THE 6 CAPACITY OF ACADEMIC ADMINISTRATIVE PERSONNEL OR TEACHER IN 7 ELEMENTARY OR SECONDARY SCHOOLS) OR IN THE CAPACITY OF OUTSIDE 8 SALESMAN (AS SUCH TERMS ARE DEFINED AND DELIMITED FROM TIME TO 9 TIME BY REGULATIONS OF THE SECRETARY, EXCEPT THAT AN EMPLOYE OF 10 A RETAIL OR SERVICE ESTABLISHMENT SHALL NOT BE EXCLUDED FROM THE 11 DEFINITION OF EMPLOYE EMPLOYED IN A BONA FIDE EXECUTIVE OR 12 ADMINISTRATIVE CAPACITY BECAUSE OF THE NUMBER OF HOURS IN HIS OR 13 HER WORKWEEK WHICH HE OR SHE DEVOTES TO ACTIVITIES NOT DIRECTLY 14 OR CLOSELY RELATED TO THE PERFORMANCE OF EXECUTIVE 15 ADMINISTRATIVE ACTIVITIES, IF LESS THAN FORTY PERCENT OF HIS OR 16 HER HOURS WORKED IN THE WORKWEEK ARE DEVOTED TO SUCH 17 ACTIVITIES); 18 (6) IN THE ACTIVITIES OF AN EDUCATIONAL, CHARITABLE, 19 RELIGIOUS OR NONPROFIT ORGANIZATION WHERE THE EMPLOYER-EMPLOYE 20 RELATIONSHIP DOES NOT IN FACT EXIST OR WHERE THE SERVICES ARE 21 RENDERED TO SUCH ORGANIZATION GRATUITOUSLY; 22 (7) IN SEASONAL EMPLOYMENT, IF THE EMPLOYE IS UNDER EIGHTEEN 23 YEARS OF AGE, OR IF A STUDENT UNDER TWENTY-FOUR YEARS OF AGE, BY 24 A NONPROFIT HEALTH OR WELFARE AGENCY ENGAGED IN ACTIVITIES 25 DEALING WITH HANDICAPPED OR EXCEPTIONAL CHILDREN OR BY A 26 NONPROFIT DAY OR RESIDENT SEASONAL RECREATIONAL CAMP FOR CAMPERS 27 UNDER THE AGE OF EIGHTEEN YEARS, WHICH OPERATES FOR A PERIOD OF 28 LESS THAN THREE MONTHS IN ANY ONE YEAR; 29 (9) IN EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A PUBLIC 30 AMUSEMENT OR RECREATIONAL ESTABLISHMENT, ORGANIZED CAMP, OR 20060S1090B1973 - 21 -
1 RELIGIOUS OR NONPROFIT EDUCATIONAL CONFERENCE CENTER, IF (I) IT 2 DOES NOT OPERATE FOR MORE THAN SEVEN MONTHS IN ANY CALENDAR 3 YEAR, OR (II) DURING THE PRECEDING CALENDAR YEAR, ITS AVERAGE 4 RECEIPTS FOR ANY SIX MONTHS OF SUCH YEAR WERE NOT MORE THAN 5 THIRTY-THREE AND ONE-THIRD PERCENT OF ITS AVERAGE RECEIPTS FOR 6 THE OTHER SIX MONTHS OF SUCH YEAR; 7 (10) GOLF CADDY; 8 (11) IN EMPLOYMENT AS A SWITCHBOARD OPERATOR EMPLOYED BY AN 9 INDEPENDENTLY OWNED PUBLIC TELEPHONE COMPANY WHICH HAS NOT MORE 10 THAN SEVEN HUNDRED AND FIFTY STATIONS; 11 (12) EMPLOYES NOT SUBJECT TO CIVIL SERVICE LAWS WHO HOLD 12 ELECTIVE OFFICE OR ARE ON THE PERSONAL STAFF OF SUCH AN 13 OFFICEHOLDER, ARE IMMEDIATE ADVISERS TO HIM OR HER, OR ARE 14 APPOINTED BY HIM OR HER TO SERVE ON A POLICY-MAKING LEVEL. 15 (B) EMPLOYMENT IN THE FOLLOWING CLASSIFICATIONS SHALL BE 16 EXEMPT FROM THE OVERTIME PROVISIONS OF THIS ACT: 17 (1) SEAMAN; 18 (2) ANY SALESMAN, PARTSMAN, OR MECHANIC PRIMARILY ENGAGED IN 19 SELLING AND SERVICING AUTOMOBILES, TRAILERS, TRUCKS, FARM 20 IMPLEMENTS, OR AIRCRAFT IF EMPLOYED BY A NONMANUFACTURING 21 ESTABLISHMENT PRIMARILY ENGAGED IN THE BUSINESS OF SELLING SUCH 22 VEHICLES TO ULTIMATE PURCHASERS; 23 (3) ANY DRIVER EMPLOYED BY AN EMPLOYER ENGAGED IN THE 24 BUSINESS OF OPERATING TAXICABS; 25 (4) ANY EMPLOYE EMPLOYED AS AN ANNOUNCER, NEWS EDITOR, OR 26 CHIEF ENGINEER BY A RADIO OR TELEVISION STATION, THE MAJOR 27 STUDIO OF WHICH IS LOCATED (I) IN A CITY OR TOWN OF ONE HUNDRED 28 THOUSAND POPULATION OR LESS, ACCORDING TO THE LATEST AVAILABLE 29 DECENNIAL CENSUS FIGURES AS COMPILED BY THE BUREAU OF THE 30 CENSUS, EXCEPT WHERE SUCH CITY OR TOWN IS PART OF A STANDARD 20060S1090B1973 - 22 -
1 METROPOLITAN STATISTICAL AREA, AS DEFINED AND DESIGNATED BY THE 2 BUREAU OF THE BUDGET, WHICH HAS A TOTAL POPULATION IN EXCESS OF 3 ONE HUNDRED THOUSAND, OR (II) IN A CITY OR TOWN OF TWENTY-FIVE 4 THOUSAND POPULATION OR LESS, WHICH IS PART OF SUCH AN AREA BUT 5 IS AT LEAST FORTY AIRLINE MILES FROM THE PRINCIPAL CITY IN SUCH 6 AREA; 7 (5) ANY EMPLOYE ENGAGED IN THE PROCESSING OF MAPLE SAP INTO 8 SUGAR (OTHER THAN REFINED SUGAR) OR SYRUP; 9 (6) EMPLOYMENT BY AN ESTABLISHMENT WHICH IS A MOTION PICTURE 10 THEATRE; 11 (7) ANY EMPLOYE OF A MOTOR CARRIER WITH RESPECT TO WHOM THE 12 FEDERAL SECRETARY OF TRANSPORTATION HAS POWER TO ESTABLISH 13 QUALIFICATIONS AND MAXIMUM HOURS OF SERVICE UNDER 49 U.S.C. § 14 3102(B)(1) AND (2) (RELATING TO REQUIREMENTS FOR QUALIFICATIONS, 15 HOURS OF SERVICE, SAFETY AND EQUIPMENT STANDARDS). 16 (C) (1) NOTWITHSTANDING THE PROVISIONS OF SECTION 4(A)(7) 17 AND (8), AN EMPLOYER UNLESS OTHERWISE EXEMPT FROM THE MINIMUM 18 WAGE PROVISIONS OF SECTION 4(A)(6) WHOSE EMPLOYE COMPLEMENT IS 19 COMPOSED OF THE EQUIVALENT OF TEN OR LESS FULL-TIME EMPLOYES TO 20 BE CALCULATED ON A FORTY-HOUR WORKWEEK SHALL PAY: 21 (I) FIVE DOLLARS SIXTY-FIVE CENTS ($5.65) AN HOUR BEGINNING 22 JANUARY 1, 2007. 23 (II) SIX DOLLARS SIXTY-FIVE CENTS ($6.65) AN HOUR BEGINNING 24 JULY 1, 2007. 25 (2) SUCH EMPLOYER SHALL PAY THE FULL AMOUNT OF THE MINIMUM 26 WAGE UNDER SECTION 4(A)(8) BEGINNING JULY 1, 2008. 27 SECTION 3. SECTIONS 6, 7, 8 AND 9 OF THE ACT ARE AMENDED TO 28 READ: 29 SECTION 6. MINIMUM WAGE ADVISORY BOARD.--(A) THERE IS 30 HEREBY CREATED IN THE DEPARTMENT OF LABOR AND INDUSTRY A MINIMUM 20060S1090B1973 - 23 -
1 WAGE ADVISORY BOARD CONSISTING OF NINE MEMBERS TO BE APPOINTED 2 BY THE SECRETARY TO ASSIST HIM OR HER IN CARRYING OUT HIS OR HER 3 DUTIES UNDER THIS ACT, AND FOR THE PURPOSE OF CONDUCTING PUBLIC 4 HEARINGS AT THE REQUEST OF THE SECRETARY IN ORDER TO RECOMMEND 5 RULES AND REGULATIONS FOR THE OCCUPATIONS COVERED WITHIN THIS 6 ACT. 7 (B) OF THE NINE MEMBERS, THREE SHALL BE REPRESENTATIVES OF 8 AN ESTABLISHED RECOGNIZED ASSOCIATION OF LABOR ORGANIZATIONS, 9 THREE SHALL BE REPRESENTATIVES OF AN ESTABLISHED RECOGNIZED 10 ASSOCIATION OF EMPLOYERS AND THREE SHALL BE MEMBERS FROM THE 11 GENERAL PUBLIC. THE SECRETARY OF LABOR AND INDUSTRY OR HIS OR 12 HER DESIGNATED REPRESENTATIVE SHALL BE CHAIRMAN OF THE BOARD. 13 (C) EACH MEMBER OF THE BOARD SHALL RECEIVE COMPENSATION OF 14 THIRTY DOLLARS ($30) PER DAY PLUS NECESSARY EXPENSES, FOR EACH 15 DAY ACTUALLY SPENT IN THE PERFORMANCE OF HIS OR HER DUTIES. NO 16 EMPLOYE OF THE COMMONWEALTH SHALL RECEIVE ANY ADDITIONAL 17 COMPENSATION OR EXPENSES ON ACCOUNT OF HIS OR HER SERVICES UNDER 18 THIS ACT. 19 (D) AT LEAST TEN DAYS' PUBLIC NOTICE SHALL BE GIVEN IN THE 20 MANNER PRESCRIBED BY THE BOARD PRIOR TO ANY PUBLIC HEARING OF 21 THE BOARD. FIVE MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM. 22 (E) THE BOARD SHALL HAVE THE POWER AND DUTY TO: 23 (1) CONSULT WITH THE SECRETARY CONCERNING ANY MATTER ARISING 24 UNDER THE ADMINISTRATION OF THIS ACT AND ADVISE AND ASSIST HIM 25 OR HER IN CARRYING OUT THE DUTIES PRESCRIBED FOR HIM OR HER BY 26 SECTION 8 OF THIS ACT; 27 (2) CONDUCT PUBLIC HEARINGS AT THE REQUEST OF THE SECRETARY 28 IN ORDER TO DEVELOP RULES AND REGULATIONS IN ACCORDANCE WITH 29 SECTION 9 OF THIS ACT, IN WHICH HEARINGS DUE PROCESS OF LAW 30 SHALL BE OBSERVED AND ANY PERSON MAY APPEAR AND BE HEARD OR FILE 20060S1090B1973 - 24 -
1 STATEMENTS IN SUPPORT OF HIS OR HER POSITION; 2 (3) THE BOARD SHALL SUBMIT ITS REPORT INCLUDING 3 RECOMMENDATIONS FOR THE PROMULGATION OF RULES AND REGULATIONS TO 4 THE SECRETARY, WHO SHALL WITHIN THIRTY DAYS THEREAFTER ACCEPT 5 SUCH REPORT OR REFER IT TO THE BOARD FOR FURTHER CONSIDERATION 6 AND CONSULTATION. IF THE REPORT IS REFERRED TO THE BOARD FOR 7 FURTHER CONSIDERATION, THE SECRETARY SHALL, IN CONSULTATION WITH 8 THE BOARD, MODIFY, AMEND, OR OTHERWISE ACT UPON SUCH REPORT 9 WITHIN SIXTY DAYS THEREAFTER. RULES AND REGULATIONS DEVELOPED 10 AND PROMULGATED HEREUNDER SHALL BE PUBLISHED AND ANY PERSON 11 AGGRIEVED THEREBY, SHALL HAVE A RIGHT OF REVIEW AS SET FORTH IN 12 SECTION 10 OF THIS ACT[.] ; 13 (4) SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY BY MARCH 14 1 OF EACH YEAR DETAILING, TO THE MAXIMUM EXTENT POSSIBLE, DATA 15 ON THE PREVIOUS CALENDAR YEAR'S DEMOGRAPHICS OF THOSE WORKERS 16 WHO ARE PAID THE MINIMUM WAGE OR BELOW. THE BOARD MAY INCLUDE 17 ANY OTHER RELEVANT FACTS THAT IT BELIEVES NECESSARY INTO THE 18 CONTENT OF SUCH REPORT; AND 19 (5) MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY 20 SEPTEMBER 1, 2007, AS TO CHANGES THAT IT RECOMMENDS BE MADE TO 21 THIS ACT. 22 SECTION 7. INVESTIGATIONS.--(A) THE SECRETARY OR HIS OR HER 23 REPRESENTATIVE SHALL HAVE AUTHORITY TO INVESTIGATE AND ASCERTAIN 24 THE WAGES OF PERSONS EMPLOYED IN ANY OCCUPATION IN THE 25 COMMONWEALTH; ENTER AND INSPECT THE PLACE OF BUSINESS OR 26 EMPLOYMENT OF ANY EMPLOYER OF EMPLOYES IN ANY OCCUPATION IN THE 27 COMMONWEALTH AT ANY REASONABLE TIME, FOR THE PURPOSE OF 28 EXAMINING AND INSPECTING ANY RECORDS OF ANY SUCH EMPLOYER THAT 29 IN ANY WAY RELATE TO WAGES, HOURS, OR OTHER CONDITIONS OF 30 EMPLOYMENT OF ANY SUCH EMPLOYES; COPY ANY OR ALL OF SUCH RECORDS 20060S1090B1973 - 25 -
1 AS [HE] THE SECRETARY OR [HIS] AN AUTHORIZED REPRESENTATIVE MAY 2 DEEM NECESSARY OR APPROPRIATE; REQUIRE FROM SUCH EMPLOYER FULL 3 AND ACCURATE STATEMENTS IN WRITING, AT SUCH TIMES AS THE 4 SECRETARY MAY DEEM NECESSARY, OF THE WAGES PAID TO ALL EMPLOYES 5 IN HIS OR HER EMPLOYMENT; AND INTERROGATE SUCH PERSONS FOR THE 6 PURPOSE OF ASCERTAINING WHETHER THE PROVISIONS OF THIS ACT AND 7 THE REGULATIONS ISSUED THEREUNDER HAVE BEEN AND ARE BEING 8 COMPLIED WITH. 9 SECTION 8. DUTY OF EMPLOYER.--EVERY EMPLOYER OF EMPLOYES 10 SHALL KEEP A TRUE AND ACCURATE RECORD OF THE HOURS WORKED BY 11 EACH EMPLOYE AND THE WAGES PAID TO EACH, AND SHALL FURNISH TO 12 THE SECRETARY OR HIS OR HER DULY AUTHORIZED REPRESENTATIVE, UPON 13 DEMAND, A SWORN STATEMENT OF THE SAME. SUCH RECORDS SHALL BE 14 OPEN TO INSPECTION BY ANY DULY AUTHORIZED REPRESENTATIVE OF THE 15 SECRETARY AT ANY REASONABLE TIME AND SHALL BE PRESERVED FOR A 16 PERIOD OF THREE YEARS. EVERY EMPLOYER SUBJECT TO THIS ACT SHALL 17 KEEP A SUMMARY OF THIS ACT AND ANY REGULATIONS ISSUED THEREUNDER 18 APPLICABLE TO HIM OR HER, POSTED IN A CONSPICUOUS PLACE WHERE 19 EMPLOYES NORMALLY PASS AND CAN READ IT. EMPLOYERS SHALL, UPON 20 REQUEST, BE FURNISHED COPIES OF SUCH SUMMARIES WITHOUT CHARGE. 21 EMPLOYERS SHALL PERMIT ANY DULY AUTHORIZED REPRESENTATIVE OF THE 22 SECRETARY TO INTERROGATE ANY EMPLOYE IN THE PLACE OF EMPLOYMENT 23 AND DURING WORK HOURS WITH RESPECT TO THE WAGES PAID TO AND THE 24 HOURS WORKED BY SUCH EMPLOYE OR OTHER EMPLOYES. 25 SECTION 9. ENFORCEMENT; RULES AND REGULATIONS.--THE 26 SECRETARY SHALL ENFORCE THIS ACT. [HE] THE SECRETARY SHALL MAKE 27 AND, FROM TIME TO TIME, REVISE REGULATIONS, WITH THE ASSISTANCE 28 OF THE BOARD, WHEN REQUESTED BY [HIM] THE SECRETARY, WHICH SHALL 29 BE DEEMED APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS ACT AND 30 TO SAFEGUARD THE MINIMUM WAGE RATES THEREBY ESTABLISHED. SUCH 20060S1090B1973 - 26 -
1 REGULATIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, REGULATIONS 2 DEFINING AND GOVERNING BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR 3 PROFESSIONAL EMPLOYES AND OUTSIDE [SALESMEN] SALES PERSONS, 4 LEARNERS AND APPRENTICES, THEIR NUMBER, PROPORTION, LENGTH OF 5 LEARNING PERIOD, AND OTHER WORKING CONDITIONS; HANDICAPPED 6 WORKERS; PART-TIME PAY; OVERTIME STANDARDS; BONUSES; ALLOWANCES 7 FOR BOARD, LODGING, APPAREL, OR OTHER FACILITIES OR SERVICES 8 CUSTOMARILY FURNISHED BY EMPLOYERS TO EMPLOYES; ALLOWANCES FOR 9 GRATUITIES; OR ALLOWANCES FOR SUCH OTHER SPECIAL CONDITIONS OR 10 CIRCUMSTANCES WHICH MAY BE INCIDENTAL TO A PARTICULAR EMPLOYER- 11 EMPLOYE RELATIONSHIP. 12 SECTION 4. SECTION 12 OF THE ACT, AMENDED DECEMBER 10, 1974 13 (P.L.916, NO.303), IS AMENDED TO READ: 14 SECTION 12. PENALTIES.--(A) ANY EMPLOYER AND HIS OR HER 15 AGENT, OR THE OFFICER OR AGENT OF ANY CORPORATION, WHO 16 DISCHARGES OR IN ANY OTHER MANNER DISCRIMINATES AGAINST ANY 17 EMPLOYE BECAUSE SUCH EMPLOYE HAS TESTIFIED OR IS ABOUT TO 18 TESTIFY BEFORE THE SECRETARY OR HIS OR HER REPRESENTATIVE IN ANY 19 INVESTIGATION OR PROCEEDING UNDER OR RELATED TO THIS ACT, OR 20 BECAUSE SUCH EMPLOYER BELIEVES THAT SAID EMPLOYE MAY SO TESTIFY 21 SHALL, UPON CONVICTION THEREOF IN A SUMMARY PROCEEDING, BE 22 SENTENCED TO PAY A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS 23 ($500) NOR MORE THAN ONE THOUSAND DOLLARS ($1,000), AND IN 24 DEFAULT OF THE PAYMENT OF SUCH FINE AND COSTS, SHALL BE 25 SENTENCED TO IMPRISONMENT FOR NOT LESS THAN TEN DAYS NOR MORE 26 THAN NINETY DAYS. 27 (B) ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION 28 WHO PAYS OR AGREES TO PAY ANY EMPLOYE LESS THAN THE RATES 29 APPLICABLE TO SUCH EMPLOYE UNDER THIS ACT SHALL, UPON CONVICTION 30 THEREOF IN A SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF 20060S1090B1973 - 27 -
1 NOT LESS THAN SEVENTY-FIVE DOLLARS ($75) NOR MORE THAN THREE 2 HUNDRED DOLLARS ($300) OR TO UNDERGO IMPRISONMENT OF NOT LESS 3 THAN TEN NOR MORE THAN SIXTY DAYS, OR BOTH. EACH WEEK IN WHICH 4 SUCH EMPLOYE IS PAID LESS THAN THE RATE APPLICABLE TO HIM OR HER 5 UNDER THIS ACT AND FOR EACH EMPLOYE WHO IS PAID LESS THAN THE 6 PRESCRIBED RATE, A SEPARATE OFFENSE SHALL BE DEEMED TO OCCUR. 7 ANY AGREEMENT BETWEEN THE EMPLOYER AND THE EMPLOYE TO WORK FOR 8 LESS THAN THE APPLICABLE WAGE RATE SHALL BE NO DEFENSE TO ACTION 9 BY THE COMMONWEALTH UNDER THIS SECTION. 10 (C) ANY EMPLOYER OR THE OFFICER OR AGENT OF ANY CORPORATION 11 WHO VIOLATES ANY OTHER PROVISION OF THIS ACT OR OF ANY 12 REGULATION ISSUED THEREUNDER SHALL, UPON CONVICTION THEREOF IN A 13 SUMMARY PROCEEDING, BE SENTENCED TO PAY A FINE OF NOT LESS THAN 14 ONE HUNDRED DOLLARS ($100) NOR MORE THAN FIVE HUNDRED DOLLARS 15 ($500), AND EACH DAY OF SUCH FAILURE TO COMPLY WITH THIS ACT OR 16 REGULATION, SHALL CONSTITUTE A SEPARATE OFFENSE. 17 SECTION 5. THE ACT IS AMENDED BY ADDING A SECTION TO READ: 18 SECTION 14.1. PREEMPTION.--(A) EXCEPT AS SET FORTH IN 19 SUBSECTION (B), THIS ACT SHALL PREEMPT AND SUPERSEDE ANY LOCAL 20 ORDINANCE OR RULE CONCERNING THE SUBJECT MATTER OF THIS ACT. 21 (B) THIS SECTION DOES NOT PROHIBIT LOCAL REGULATION PURSUANT 22 TO AN ORDINANCE WHICH WAS ADOPTED BY A MUNICIPALITY PRIOR TO 23 JANUARY 1, 2006, AND WHICH REMAINED IN EFFECT ON JANUARY 1, 24 2006. 25 SECTION 6. ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR 26 AS THEY ARE INCONSISTENT WITH THE ADDITION OF SECTION 14.1 OF 27 THE ACT. 28 SECTION 7. THIS ACT SHALL APPLY AS FOLLOWS: 29 (1) THE ADDITION OF SECTION 14.1 OF THE ACT SHALL NOT 30 INVALIDATE ANY ORDINANCE, CHARTER PROVISION, RESOLUTION, RULE 20060S1090B1973 - 28 -
1 OR REGULATION IN EFFECT ON THE EFFECTIVE DATE OF THIS 2 SECTION. 3 (2) THE FOLLOWING PROVISIONS SHALL APPLY TO CONTRACTS 4 ENTERED INTO OR RENEWED ON OR AFTER THE EFFECTIVE DATE OF 5 THIS SECTION: 6 (I) THE ADDITION OF SECTION 14.1 OF THE ACT. 7 (II) SECTION 7 OF THIS ACT. 8 SECTION 8. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. A31L43VDL/20060S1090B1973 - 29 -