Pennsylvania Employment Law Guide for Employers

Pennsylvania Employment Law Overview

Pennsylvania's employment law framework combines state statutes with local ordinances, particularly in Philadelphia and Pittsburgh, to create a layered compliance environment. The Pennsylvania Minimum Wage Act and Wage Payment and Collection Law form the foundation of state wage and hour regulation, while various local laws add requirements related to hiring, scheduling, and workplace protections.

Pennsylvania follows the at-will employment doctrine, with exceptions for terminations that violate public policy, such as firing an employee for filing a workers' compensation claim or refusing to violate the law. The Pennsylvania Human Relations Act (PHRA) provides the primary state anti-discrimination framework.

Wage Payment and Collection

The Pennsylvania Wage Payment and Collection Law (WPCL) governs how and when employers must pay employees. Employers must establish regular paydays no more than 15 days apart. Upon separation, final wages must be paid by the next regular payday. The WPCL allows employees to recover unpaid wages plus 25 percent liquidated damages and reasonable attorney fees.

Pennsylvania's overtime rule largely mirrors the federal FLSA, requiring overtime pay at 1.5 times the regular rate for hours over 40 in a workweek. However, Pennsylvania's exempt salary threshold and duties tests may differ from federal standards. Employers should verify compliance with both state and federal overtime requirements.

Philadelphia-Specific Requirements

Philadelphia has enacted several employment laws that exceed state requirements. The Fair Practices Ordinance prohibits discrimination on additional bases including sexual orientation, gender identity, and domestic partner status. The Ban-the-Box law prohibits employers from inquiring about criminal history until after a conditional offer of employment. Philadelphia also enacted a predictive scheduling law for certain large retail, food service, and hospitality employers.

The Philadelphia Wage Theft Ordinance strengthens enforcement of wage payment obligations and imposes additional penalties on employers who fail to pay wages. Employers with Philadelphia-based employees must comply with these local requirements in addition to state and federal law.

Workers' Compensation

Pennsylvania requires nearly all employers to carry workers' compensation insurance. The Pennsylvania Workers' Compensation Act covers injuries arising in the course of employment and provides medical benefits, wage loss benefits, and specific loss benefits. Employers may obtain coverage through private carriers, through the State Workers' Insurance Fund, or through approved self-insurance programs.

Pennsylvania imposes penalties on employers who fail to maintain coverage, including criminal penalties of up to $2,500 per day of non-compliance and potential personal liability for corporate officers.

Additional Compliance Considerations

Pennsylvania requires employers to provide reasonable accommodations for pregnancy-related conditions under the Pennsylvania Human Relations Act. Employers with employees who work in Pennsylvania but reside in other states must address state income tax withholding reciprocity agreements. The state's Medical Marijuana Act prohibits employers from discriminating against employees solely based on their status as certified medical marijuana users, though employers may still enforce drug-free workplace policies for safety-sensitive positions.