Pennsylvania FLSA Laws: Your Guide to Compliance
Safeguard Your Business with Pennsylvania-Specific FLSA Auditing
Minimum Wage in Pennsylvania
- Federal FLSA: $7.25/hour.
- Pennsylvania Law: $7.25/hour (matches federal rate, Pennsylvania Minimum Wage Act). Tipped employees: $2.83/hour, with tips making up the difference to $7.25 (tip credit up to $4.42). Proposed increases to $15 by 2026 stalled in state Senate.
- What You Need to Know: No state premium, but misapplying tip credits can trigger penalties and back wages.
Overtime Pay
- Federal FLSA: 1.5x regular rate for hours over 40/week.
- Pennsylvania Specifics: Mirrors federal rule (Pennsylvania Minimum Wage Act). No fluctuating workweek method allowed—overtime based strictly on 40-hour week. Salary threshold for exemptions: $684/week (federal, post-2024 rule vacating). New state threshold of $1,128/week effective January 1, 2025.
- Risk: Misclassification or unpaid overtime can cost millions in DOL fines.
Child Labor
- Pennsylvania Rules: Minors under 14 restricted to limited roles; 14–15 capped at 3 hours/school day, 8 hours/non-school day; 16–17 barred from hazardous jobs. Work permits required under 18 (Pennsylvania Child Labor Act, 43 P.S. § 40.1).
- Federal FLSA: Aligns, but Pennsylvania’s permit rule is stricter—state law applies.
Recordkeeping
- Federal FLSA: 3-year retention of payroll and hours records.
- Pennsylvania Addition: 3 years minimum, plus detailed pay stubs required (Pennsylvania Wage Payment and Collection Law).
Enforcement & Penalties
- Federal: DOL penalties, back wages, up to $1.2M average for violations.
- Pennsylvania: Unpaid wages plus 25% liquidated damages if over 30 days late (Wage Payment and Collection Law). PA DOL enforces with fines and audits.
Why It Matters for Your Business
- CFOs and Managers: Pennsylvania’s strict overtime rules and new $1,128/week exemption threshold (effective January 1, 2025) raise compliance stakes. Payroll errors or outdated classifications could spark costly DOL or state investigations.
- Avoid Costly Mistakes: Mitigate risks with expert FLSA auditing tailored to Pennsylvania’s laws.
Schedule Your Pennsylvania FLSA Audit Today
