COMPLIANCE GUIDELINES FOR PENNSYLVANIA'S MINIMUM WAGE LAW

            Pennsylvania’s new minimum wage law has different provisions for companies of various sizes.  Officials anticipate that some employers may not understand the law, and others may not want to comply.

            Employees of smaller businesses will see the minimum wage rise over a longer period of time than those that work for larger employers.   Under the law, a small business is defined as having the equivalent of 10 or fewer full-time employees.

            Pennsylvania’s Department of Labor and Industry provides this outline:

            “The equivalent of 10 or less full-time employees is calculated on a 40-hour workweek. A workweek is a period of seven consecutive days starting on any day selected by the employer. For example, four part-time employees who each worked 20 hours for a total of 80 hours in a workweek (4 x 20 hours) would be the equivalent of two full-time employees.

            “Where the total employee complement hours worked in any workweek exceeds 400 hours, the employer is not eligible for the modified minimum wage implementation schedule. For example, five full-time employees and eight part-time employees (who worked 30 hours each during a workweek) would not qualify for this small business minimum wage. (5 x 40 hours + 8 x 30 hours = 440 hours).”

            Larger employers must pay a minimum wage of $6.25 an hour on Jan. 1.  Smaller employers must pay a minimum wage of $5.65 an hour on Jan. 1.

            The law provides other exceptions to the new minimum wage.

            Training wage – Applies to workers under 20 years of age.  These employees can be paid $5.15 an hour for the first 60 calendar days of employment (not 60 working days).  Workers who turn 20 during this period will be paid the new minimum wage.

            Tipped employees – The minimum wage remains $2.83, however the employer has to make up the difference if the wages and tips do not equal the new minimum wage.