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1 Thank you for downloading Agent 77 s STATE EMPLOYMENT REGULATIONS FOR PENNSYLVANIA. This form is provided to you as is. As provided, we believe it meets the requirements needed for state compliance, as applicable, at the time you download it. Any substantive change to the contents of this document may result in potential legal liability for you and your company. Agent 77, Inc. accepts no liability or responsibility for any of our documents that have had the contents altered beyond simply filling in the appropriate blanks and/or replacing place holder text and adding your company logo and information. This document is provided to you with the understanding it is not a legal or accounting opinion and should not be construed as such, and that Agent 77, Inc. is not engaged in the business of rendering legal or accounting services. If you need specific advice on any legal or accounting issue, the services of a competent professional should be sought. Please see for more information. This and all documents downloaded from our website are Copyright 2005, 2006, 2007, 2013 Agent 77, Inc. Reminder: Agent 77 s license prohibits you from copying and distributing this STATE EMPLOYMENT REGULATIONS FOR PENNSYLVANIA to anyone outside of your company. Doing so is a violation of this license and will result in the revocation of your subscription and/or prosecution under federal copyright laws as well as possible civil litigation. Please see for a copy of the current license agreement. Pennsylvania_Regs

2 What s New Although not required, employers who offer employees paid leave for organ or bone marrow donation are now eligible for a tax credit Pennsylvania military leave law is amended to require that the eligibility of a fulltime student for coverage under his or her parent's health insurance policy may not to be terminated because of the age of the student when his or her educational program was interrupted because of military duty The Pennsylvania minimum wage was raised to $7.15 per hour as of July 1, New sections added on Organ and Bone Marrow Donor Leave, Smoking in the Workplace and Job Reference Liability As of July 24, 2009, the Pennsylvania minimum wage follows the federal minimum which was raised to $ Added section on right of employees to view their employment records Changes were added to the following sections: Discrimination, Smoking, Family Leave, Payment of Wages, Voting, Child Labor and Jury Duty. The following sections were added: New Hire Reporting and Breastfeeding Changes were made to the following sections: State Continuation of Benefits and Child Labor. Pennsylvania_Regs

3 Introduction Employment laws vary from state to state with some being more employee-friendly than others. Federal regulations set minimum standards of worker protections that all employers of a given size must meet. Individual states, however, are free to grant workers additional or expanded rights or protections above this federal minimum. Virtually all employers in the U.S. are subject to federal employment regulations. Only the smallest, strictly local employers are not subject to federal regulations. If an employer does any of the following, they are participating in interstate commerce and are subject to federal employment regulations: Production of goods for commerce, such as transportation or communication Use of mail over state lines Interstate communications using the telephone Use of the Internet over state lines Interstate communications using electronic mail Make purchases from out-of-state vendors Sell to customers in other states This summary of employment regulations does not include information for those few employers not subject to the federal minimum employment regulations. Many states have regulations for public employers that are different than those for employers in the private sector. This document also does not include information on regulations (federal and state) that apply only to public sector employers. In this document we summarize the workplace regulations and worker protections available in Pennsylvania. Although not an exhaustive list, it covers the major topics small to midsized employers must deal with on a regular basis. Covered areas include: Wage, hour and overtime rules (including child labor and break rules); Leaves of absence (family leaves, voting time and jury duty); Discrimination and harassment regulations; and State rules on continuation of benefits. The federally mandated, but state run new-hire reporting requirements are covered under a separate document, available for download from Libretto or from the Agent 77 store. The following Quick View table summarizes these regulations. This is followed by a more detailed description of these regulations. Please be sure to read both carefully to understand your responsibilities under Pennsylvania and federal law. Also, see the resources section below for reference websites and Libretto tools that can help you comply with these regulations. Pennsylvania_Regs 1 of 10

4 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR PENNSYLVANIA Topic Minimum Wage Overtime Payment of Wages Work Hours and Breaks Child Labor Voting Time Organ and Bone Marrow Donor Leave Jury Duty and Crime Victim Leave Pennsylvania Regulation $7.25 / hour Tipped employees may be paid a minimum of $2.83 Training wage for employees under 20 (first 90 days) is $6.55 / hour Some localities have a higher minimum Non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a given week Pay periods must be semi-monthly Regular pay periods must be established and published for all employees. Final paychecks must include any accrued vacation if that is the employer's policy. Final paychecks must be delivered no later than the following payday Pennsylvania has no break time rules, except for minors and seasonal farm workers. Employers employing minors under 18 must keep an employment certificate on file (issued by Superintendent of Schools) Required 30-minute break for every 5 hours worked Federal and Pennsylvania law prohibit minors in certain occupations. See the U.S. Department of Labor and the Pennsylvania Department of Labor & Industry for information on these prohibitions (contact information is in the reference section). See the details section below for restrictions on hours minors may work. Posting provisions apply. Pennsylvania has no voting time rules Employers who offer employees paid leave for organ or bone marrow donation may apply for a tax credit For most companies, leave is required, but is unpaid. Exceptions are for retail firms with fewer than 15 employees and manufacturing firms with fewer than 40 employees Employee must be reinstated to same position after completion of jury duty Employees who have been victims of a crime must be granted sufficient unpaid leave to attend court proceedings Pennsylvania_Regs 2 of 10

5 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR PENNSYLVANIA Family Leave Military Leave Job Reference Liability Pennsylvania has no other Family Leave laws aside from the Federal Law outlined below. Employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours Leave must be granted for birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for family leave and illness/injury of covered service member for leave. Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave Employers must grant up to 5 years of military leave Employee must be reinstated to same or equivalent position after completion of military leave Employers may not terminate or threaten to terminate any employee called to military service Employers must continue health and other benefits for the first 30 days of leave at no cost to the employee After 30 days employers must offer to continue benefits at cost to the employee for the duration of the leave Employees have 90 days upon discharge from the military or 30 days from discharge on the National Guard to notify employers of their intent to return to work Health coverage of full time students under their parents plan may not be terminated due to interruption for military service Employers who give out information about current or former employee's job performance to a prospective employer are generally protected from civil suit, unless the information given is knowingly false. Smoking in the Workplace New Hire Reporting Breastfeeding Personnel Records Pennsylvania prohibits smoking in any public space designated as non-smoking. For exceptions, see below. Posting provisions apply. Employers must report to the state information about new hires/rehires within 20 days. A woman is permitted to breastfeed her child in any location where they are authorized to be present. Employees have the right to examine their personnel records at least once every year. Employees need not be allowed to copy their records, but must be allowed to take notes. Pennsylvania_Regs 3 of 10

6 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR PENNSYLVANIA Discrimination and Harassment Continuation of Benefits Pennsylvania prohibits employers from discriminating based on ancestry or national origin, race or color, religion, age (over 40), marital or family status, physical or mental disability, individuals with a GED certificate, AIDS, use of service animal, or sex (including sexual harassment, pregnancy, childbirth, and other pregnancy-related conditions) and service in the military. Details and contact information are listed below. Pennsylvania_Regs 4 of 10

7 Wage, Hour and Overtime Rules Employers are subject to the federal minimum wage, hour and overtime rules through the Fair Labor Standards Act. This act specifies that businesses that do at least $500,000 in gross revenue, as well as all health care facilities and schools are subject to the federal rules. Also, employers involved in interstate commerce are subject to the federal rules. Minimum Wage Pennsylvania minimum wage is $7.25 per hour. Employers may pay tipped employees a minimum of $2.83 per hour, provided that the total wages plus tips come to at least the minimum of $7.25 per hour. A special minimum wage of $6.55 per hour may be used for employees under 20 years old for the first 90 days. Be aware that certain local governments in Pennsylvania have a higher minimum wage for employees in their jurisdictions. Be sure to contact your city or county government to see if there are any local minimum wage rules for your business. Finally, both federal and Pennsylvania regulations allow employers to apply for licenses to pay sub-minimum wages to certain disabled persons. Please contact the U.S. Department of Labor or the Pennsylvania Department of Labor & Industry for more information on applying for these licenses. (Contact information for both are listed in the reference section below.) Overtime Pennsylvania also has the same overtime rules as the federal government. That is, for any hours worked over 40 in a given week, non-exempt employees must be paid at least one and one-half times their regular pay. Like the federal rules Pennsylvania exempts certain employees from overtime rules. Excluded employee classes include: executive, administrative, professional, outside salespeople and computer professionals. (Use Libretto s FLSA Resource Package for help in determining whether a given employee is exempt). Pennsylvania also permits exemptions for certain small employers not involved in interstate commerce. See the Pennsylvania Department of Labor & Industry web site for a list of these exemptions. Payment of Wages Under Pennsylvania law pay periods must be at least semi-monthly. However, these regular pay periods must be established and published for all employees and pay must be received no more than 15 days after the end of the pay period. Pennsylvania requires that a terminating employee be paid for any accrued vacation in addition to all wages earned, if such is the employer's policy. Final paychecks must be delivered no later than payday following termination. Deductions from the final paycheck may not be made without the employee's written consent. Employers may not require employees to be paid electronically. Work Hours and Breaks Pennsylvania has no break time rules, except for minors (see below) and seasonal farm workers. Seasonal Farm workers must be given a 30 minutes unpaid break after 5 hours of work in addition breaks of less than 30 minutes must be paid for seasonal farms work. Pennsylvania_Regs 5 of 10

8 Child Labor Pennsylvania child labor law requires all employers employing minors under the age of 18 to have employment certificates on file (unless the minor is 17 and graduated from high school). There are two classes of certificates: general employment certificates and vacation employment certificates. These certificates can be obtained from a city or county superintendent of schools or school board secretary. Further no minor under 16 years of age may be employed in any work that interferes with school attendance. Individuals under the age of 16 years of age must have a written statements by the minor's parents or legal guardians acknowledging understanding of the duties and hours of employment and granting such permisison. A minor may not be permitted to work unless he/she has all of the following: 1) A work permit and 2) For minors under the age of 16, a written statement by the minor's parent or legal guardian acknowledging understanding of the duties and hours of employment and granting permission to work subject to certain provisions. Employers who employ minors under 18 years of age are subject to strict limits for hours worked per day and per week for their minor employees: 1. When school is in session, children 14 and 15 years of age may work: During non-school hours; Up to 3 hours per day on a school day; Up to 8 hours per day on a non-school day; and Up to 18 hours per week. 2. When school is NOT in session (including summer vacations, holidays and weekends), children under the age of 16 may NOT work. More than 6 consecutive days; nor More than 40 hours per week. 3. Daily hours of work may not be before 7:00 AM or after 7:00 PM except between June 1st and Labor Day when working hours may be extended to 9:00 PM. Employers who employ minors 16 and 17 years of age who have not graduated from high school are subject to the following limits for hours worked per day and per week: 1. When school is in session, minors 16 and 17 years of age may work: Up to 8 hours per day; Up to 28 hours per week; Between 6:00 AM and 12:00 midnight on school days; and Between 6:00 AM and 1:00 AM during school vacations. 2. Summer time, minors 16 and 17 years of age may work: Up to 10 hours per day; and Up to 48 hours per week. No minor under the age of 14 may be employed with the exception of 1) as a golf caddy (must be at least 12 years of age), limited to carrying no more than one golf bag at a time and employment is not for more than 18 holes of golf in a single day; 2) in the delivery of newspapers ( must be at least 11 years of age); and in a performance. Pennsylvania_Regs 6 of 10

9 Other limitations for minors include working with alcoholic beverages, messengers and other occupations considered inappropriate or hazardous by the department of labor. Some exceptions for certain occupations may be obtained from the Department of Labor and Industry. Both federal and Pennsylvania law prohibit minors from working in hazardous or certain other occupations. Please contact the U.S. Department of Labor or the Pennsylvania Department of Labor & Industry for more information on restricted occupations for minor employees. Employers must post in a conspicuous place wherever minors are employed a printed abstract of the sections of the child labor law relating to hours of labor. These abstracts are available from the Department of Labor and Industry. Pennsylvania law also requires that any minor working 5 or more continuous hours in a day be given a 30-minute break. Leaves of Absence Organ and Bone Marrow Donor Leave Although not required, employers who offer employees at least 5 days of paid leave for organ or bone marrow donation are eligible for a tax credit. Voting Time Pennsylvania has no voting time leave provisions; however employers are prohibited from influencing the political opinions and activities of employees. Jury Duty and Crime Victim Leave Most employers must provide leave for jury duty, but need not pay for the leave. Exempted from this job protection rule are retail firms with fewer than 15 employees and manufacturing firms with fewer than 40 employees. Covered employers may not terminate or threaten to terminate any employee called to jury duty, and employees must be restored to their position within the company as if they had been on furlough. Employees who are covered by FLSA exemptions must be paid their full wage (minus jury duty stipend) or risk losing their exemption status. Employers must grant their employees who have been victims of a crime sufficient unpaid leave to attend court proceedings. Leave must also be extended to employees when immediate family members (father, mother, sibling, spouse, grandparent, child or domestic partner) are victims of a crime. Employee victims or witnesses to crime may not be discharged or deprived of any other incidents of employment because of court attendance. Family Leave Employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours. This leave must be granted for the birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and illness/injury of covered service member for leave. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage and retirement benefits, must be maintained during leave. Pennsylvania_Regs 7 of 10

10 Military Leave Employees must be granted up to 5 years of military leave and must be restored to their position (or an equivalent position) within the company as if they had been on furlough. Also, employers may not terminate or threaten to terminate any employee called to military service. Pennsylvania law gives employees up to 90 days after leaving service in the U.S. Military (30 days after leaving service in the National Guard) to notify employers that they intend to return to their job. Pennsylvania also requires that employees on military leave be continued on health insurance and other benefits for the first 30 days at no cost to the employee and after 30 days must be offered the option to continue benefits at their own cost during their leave of absence. Eligibility of a full-time student for coverage under his or her parent's health insurance policy may not to be terminated because of the age of the student when his or her educational program was interrupted because of military duty. All other practices pertaining to military leave must follow the federal USERRA regulations, please see Libretto s White Paper on USERRA for more details on military leave. Other Employment Regulations Job Reference Liability Employers who give out information about current or former employees job performance are protected from civil suit by the former employee, unless the information can be shown to be false and the disclosing employer knows (or should have known) it to be or did not act in good faith. Smoking in the Workplace Pennsylvania prohibits smoking in any public space designated as non-smoking by the proprietor or person in charge. Exceptions include: private social functions where the area used is under control of the sponsor and not the proprietor; factories, warehouses and other work areas not open to the general public; restaurants seating less than 75; bars and taverns; lobbies and hallways of public area; hotels & motels rooms designated as smoking; and retail tobacco shops and cigar bars. Signs containing the words "smoking" or "no smoking" must be prominently posted and properly maintained. Personnel Records Upon request (employers may require the request to be in writing), employees have the right to review their personnel file. This review must be during regular business hours and be at the location where the records are maintained. Employers may: require this review to be on the employee s free time (however sufficient time must be allowed for the review commensurate with the size of the file); require an employer representative to be present during this review; and may limit this review to once per calendar year. Employers are not required to allow employees to make a copy of the file or to remove the file from the premises, but must allow the employee to make notes if they wish. Access to any records related to criminal proceedings; civil, criminal or grievance procedures; reference letters; medical records; employer planning documents; and any background checks need not be included for the employee to review. Employees who dispute anything in their personnel record may petition a hearing from the Bureau of Labor Standards. After the hearing, the Bureau may order that the employee be given the opportunity to place a rebuttal statement in their personnel file. Pennsylvania_Regs 8 of 10

11 New Hire Reporting Employers are required to report to the state for new hires/rehires the following information: Employee's name, address and SSN and the employer's name, address FEIN and phone number of employer contact within 20 days of hire/rehire. The reporting requirements apply to employees who were granted unpaid leave longer than 30 days; the reports can be submitted on form W-4. Breastfeeding A woman is permitted to breastfeed her child in any location, public or private, where she and the child are authorized to be present. Discrimination and Harassment Pennsylvania prohibits discrimination or harassment based on: Ancestry or national origin Race or color Religion AIDS Age (over 40) Mental or physical disability Use of service animal Marital or family status Service in the Military Individuals with a GED certificate; or Sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions) Employers who have 15 or more employees are covered by GINA which prohibits discrimination based on genetic testing. Pennsylvania has many posting requirements relating to employment regulations; those posters may be obtained from state and federal agencies. Disabilities caused or contributed to by pregnancy, miscarriage, abortion, childbirth and recovery therefrom are, for job-related purposes, temporary disabilities and should be treated as such in written and unwritten employment practices and policies. Whistleblowing is protected. State Continuation of Benefits Benefits change frequently. Continuation coverage requirements apply to small businesses (those employing 2-19 employees) that do not meet federal COBRA requirements. Eligible employees have the right to continue coverage for u to nine (9) months. The following link will provide further information about the current state law: Pennsylvania_Regs 9 of 10

12 Resources/Posters Pennsylvania Department of Labor & Industry United States Department of Labor Pennsylvania New Hire Reporting Related Libretto Products FLSA Resource Package (for help in determining overtime exempt / non-exempt status of employees) Overtime Guidelines Break Period Guidelines Family Medical Leave of Absence Policy Military Leave of Absence Policy Jury Duty-Witness Leave Policy Voting Time Policy Guidelines on Smoking In the Workplace Guidelines on Verification of Employment and Providing References Prohibited Harassment and Nondiscrimination Policy & Employee Acknowledgement COBRA Continuation Coverage Policy General Notice of COBRA Continuation Coverage Rights COBRA Continuation Coverage Election Information. Notice And Form New Hire Reporting for Pennsylvania Pennsylvania_Regs 10 of 10