Amendments to the Minimum Wage Act, which modernize the rules for tipping workers, will take effect in August

Regulatory changes to the law that have been in place for decades The Pennsylvania Minimum Wage Rules will take effect Aug. 5, the Pennsylvania Department of Labor and Industry announced Wednesday.

Regulations in final form, unanimously approved by an independent regulatory commission in late March and published in Pennsylvania Bulletin May 7 to make some key changes in 1968 Minimum Wage Act regarding workers who give tips, including bringing state legislation in line with federal regulations on tip loans and tipping associations.

Regulatory changes also increase the amount of tips that a tip-giving employee must receive monthly – from $ 30 to $ 135 – before an employer can lower an hourly rate for an employee from the state’s minimum wage of $ 7.25 per hour to $ 2.83 per hour. an hour.

Other changes include:

  • “Prohibition of employers to deduct fees for processing credit cards and other non-cash payments from the employee’s tips included in the payment by credit card or other non-cash method of payment,” and
  • “Require employers to clarify that automatic service fees are not tips for employees who give tips.”

The regulation also updates the definition of “normal rate” for employees whose hours vary from week to week note that overtime work is calculated based on the 40-hour work week.

Labor and Industry Minister Jennifer Barrier said in a statement that the updates would “protect tipping workers at 21street century and ensure consistency for employers. ”

“The world of work has changed significantly since these rules first came into force in 1977, but tipping workers remain significant [sic] and a critical segment of Pennsylvania’s workforce, ”Berrier said. “They are the only workers whose salary ultimately depends on the generosity of customers, not on the obligations of the employer.”

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