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Pennsylvania Employer HR Compliance Guide
Pennsylvania is a moderate-complexity employment state that largely tracks federal minimums on wage and leave but has increasingly active pay equity and transparency legislation taking effect in 2026. The state has no statewide paid family and medical leave program and its minimum wage remains tied to the federal floor. Employers should monitor pending pay transparency mandates closely, as new posting and disclosure requirements are expected to impose meaningful compliance obligations.
Key Facts — Pennsylvania
- Minimum Wage
- Pennsylvania's minimum wage is $7.25 per hour, matching the federal minimum, unchanged since 2009. There are no currently scheduled increases at the state level, though legislation has been repeatedly proposed. Philadelphia and Pittsburgh do not have independently applicable higher general minimum wages for private employers above the state rate.
- Pay Transparency
- Pennsylvania is advancing pay transparency requirements expected to take effect in 2026, requiring employers to disclose specific pay ranges (minimum and maximum) and general descriptions of benefits and other compensation in all job postings, including those on third-party platforms. A 14-day internal notification rule requires employers to notify current employees of openings before or alongside external postings. Salary history inquiries from employers are restricted. Violations can result in fines and, for wage-related infractions, potential prison time.
- Paid Family & Medical Leave
- No state PFML program. Pennsylvania does not have a state-administered paid family and medical leave insurance program. Employers may be subject to federal FMLA and should consider voluntary or negotiated paid leave policies.
Priority Compliance Actions
- 1Audit all job postings and compensation structures now to prepare for 2026 pay transparency requirements, ensuring documented salary bands with minimum and maximum ranges are ready for public disclosure.
- 2Implement a 14-day internal notification process so current employees are informed of open positions concurrent with or before external postings go live.
- 3Train hiring managers and HR staff to avoid salary history inquiries during recruitment, consistent with Philadelphia ordinance requirements and emerging statewide guidance.
- 4Verify compliance with Pennsylvania's semi-monthly pay frequency requirement and confirm tip-credit documentation meets the $2.83 tipped minimum wage floor with tip reconciliation records.
- 5Review independent contractor classifications using both the ABC test (for unemployment purposes) and common law factors to reduce misclassification exposure across different regulatory contexts.
Leave Laws
Federal FMLA applies to Pennsylvania employers with 50 or more employees, providing up to 12 weeks of unpaid, job-protected leave. Pennsylvania has no statewide paid sick leave or mandatory accrual law, though Philadelphia's Paid Sick Leave Ordinance requires employers with 10 or more employees to provide up to 40 hours of paid sick leave per year. There is no state-level paid family or medical leave program beyond federal requirements.
Wage & Hour
Pennsylvania follows federal overtime rules requiring 1.5x pay for hours over 40 per week. The state allows a tip credit, permitting tipped employees to be paid as low as $2.83 per hour provided tips bring total compensation to at least $7.25. Final paychecks must be issued by the next regular payday following separation. Pennsylvania law requires wages to be paid at least semi-monthly, and expense reimbursement obligations generally follow federal FLSA standards.
Worker Classification
Pennsylvania is an at-will employment state, allowing termination by either party for any lawful reason. For independent contractor classification, Pennsylvania applies different tests depending on context—unemployment compensation uses an ABC-style test, while other contexts may use common law or economic reality analysis. Non-compete agreements are enforceable in Pennsylvania if they are reasonable in scope, duration, and geographic area, and are supported by adequate consideration, though courts scrutinize them carefully.
Hiring & Onboarding
Pennsylvania has a statewide ban-the-box law (the Clean Slate Act) limiting when and how criminal history can be considered, and Philadelphia has its own stricter ban-the-box ordinance. Salary history inquiries are restricted under emerging pay equity guidance and Philadelphia's salary history ban ordinance. Employers must report new hires to the Pennsylvania New Hire Reporting Program within 20 days of hire. Drug testing is permitted but must be conducted consistently and in compliance with applicable disability and privacy considerations.
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