PRINTER'S NO. 1630

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1186

Session of

2024

INTRODUCED BY TARTAGLIONE, COSTA, KANE, SAVAL, FONTANA, KEARNEY,

MUTH, HUGHES, HAYWOOD, COLLETT, SANTARSIERO, CAPPELLETTI AND

BREWSTER, MAY 21, 2024

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; providing for gratuities; further providing for

enforcement and rules and regulations, for penalties, for

civil actions and for preemption; and providing 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

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

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

and regularly receive tips.

* * *

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) Twenty dollars ($20) an hour beginning July 1, 2024.

Beginning on July 1, 2029, and every five years thereafter, the

for each successive five-year period.

(ii) If the department determines there is no positive

percentage change, no adjustments to the minimum wage shall

occur for the relevant time period.

(iii) If the department determines there is a positive

percentage change, the positive percentage change shall be

multiplied by the minimum wage, the product shall be added to

the minimum wage and the sum shall be the preliminary adjusted

transmit notice of the final adjusted minimum wage to the

Legislative Reference Bureau for publication in the next

available issue of the Pennsylvania Bulletin.

* * *

Section 5.2. Gratuities.--(a) For purposes of this section,

a "gratuity" means property received by an employe from a

voluntary monetary contribution made by a guest, patron or

customer for services rendered.

(b) An employer may not take a gratuity or a part of a

gratuity received by an employe from a guest, customer or patron

of the employer.

(c) 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 of the employer 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.

(d) An employer shall pay a gratuity made to an employe by a

guest, customer or patron of the employer using a credit card to

the employe not later than the next regular payday after the

date the guest, customer or patron authorized the credit card

payment.

Section 4. Sections 9, 12, 13 and 14.1 of the act are

safeguard the minimum wage rates thereby established. Such

regulations may include, but are not limited to, regulations

defining and governing bona fide executive, administrative, or

professional employes and outside salespersons, learners and

apprentices, their number, proportion, length of learning

period, and other working conditions; [handicapped] workers with

disabilities; part-time pay; overtime standards; bonuses;

allowances for board, lodging, apparel, or other facilities or

services customarily furnished by employers to employes;

allowances for gratuities; or allowances for such other special

discharges or in any other manner discriminates against any

employe because such employe has testified or is about to

testify before the secretary or his or her representative in any

investigation or proceeding under or related to this act, or

because such employer believes that said employe may so testify

shall, upon conviction thereof in a summary proceeding, be

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

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

applicable to such employe under this act shall, upon conviction

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

not less than [seventy-five dollars ($75)] two hundred twenty-

five dollars ($225) nor more than [three hundred dollars ($300)]

nine hundred dollars ($900) or to undergo imprisonment of not

less than ten nor more than sixty days, or both. Each week in

which such employe is paid less than the rate applicable to him

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

[one hundred dollars ($100)] three hundred dollars ($300) nor

more than [five hundred dollars ($500)] one thousand five

hundred dollars ($1,500), and each day of such failure to comply

with this act or regulation, shall constitute a separate

offense.

Section 13. Civil Actions.--(a) If any employe is paid by

his or her employer less than the minimum wages provided by

section 4 of this act or by any regulation issued thereunder,

employe paid less than the minimum wage to which such employe

was entitled under this act and regulations issued thereunder,

the secretary may take an assignment of such wage claim, in

trust for the assigning worker and may bring any legal action

necessary to collect such claim,]

(b) The secretary may bring legal action necessary to

collect the wages of an employe who is paid by the employer less

than the minimum wages provided by section 4 or by any

regulation issued under section 4 and the employer shall be

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

or overtime compensation owed to the employe unless the employer

shows that:

(1) the act or omission resulting in the nonpayment of wages

was in good faith; and

(2) the employer had reasonable grounds for believing that

the act or omission was not in violation of this act.

January 1, 2006, and which remained in effect on January 1,

2006.] (c) Notwithstanding any other provision of law, a

municipality may enact local ordinances or rules regulating the

minimum wage for hours worked within the municipality, but may

not enact a wage lower than the minimum wage as required by the

Commonwealth or as required under section 4 of this act and the

Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201

et seq.).

(d) A municipality that enacts a local ordinance or rule

regulating the minimum wage for hours worked within the

the secretary from enforcing the provisions of this act.

(f) As used in this section, the term "municipality" means a

county, city, borough, incorporated town, township, home rule

municipality, optional plan municipality or optional charter

municipality.

Section 5. The act is amended by adding a section to read:

Section 14.2. Taxpayer Savings and Reinvestment.--(a) One

year after the effective date of this section and after each

subsequent increase to the minimum wage thereafter, the

Secretary of Human Services shall determine the amount of money

that will be saved by the Commonwealth from the increase of

wages to individuals, which increase makes the individuals

ineligible for programs under the Department of Human Services.

(b) Money saved by the Commonwealth under this section shall

be used to provide increases to child-care providers, direct-

care workers and for home-based and community-based services.

The Secretary of Human Services shall distribute money saved

under this section in the same manner as paid. The programs that

will receive the savings and the amounts being augmented to each

appropriation shall be forwarded to the Legislative Reference

Pennsylvania Bulletin.

Section 6. This act shall take effect July 1, 2024, or

immediately, whichever is later.