For the first time in 45 years, Pennsylvania workers woke up to updated Minimum Wage Act regulations Friday morning.
The new state regulations revise how employers pay tipped employees and process noncash tips, among other changes. They also align Pennsylvania regulations with federal ones.
These regulations were proposed by Gov. Tom Wolf, who has been a staunch supporter of raising the state’s $7.25 minimum wage and securing more benefits for workers throughout his term.
The updated regulations, now in effect, include:
• Employers cannot deduct credit card and noncash payment processing fees from their employees’ tips. For example, if someone leaves a $10 tip with their credit card and it costs $0.20 to process the tip, the employer must give the tipped employee $10 rather than $9.80.
• A tipped employee must make at least $135 in monthly tips before an employer can reduce his or her salary to $2.83 an hour. Previously, employers could reduce the salaries of tipped employees who made $30 in tips monthly.
• Employers must clarify to patrons that service charges are not gratuities for tipped employees. They also must leave a line on the billing statement for patrons to leave a tip if they wish to do so.
• For salaried employees who work under the fluctuating workweek method, employers must calculate their overtime pay based on a 40-hour workweek.
• Tipped employees must spend at least 80% of their time on duties that generate tips, in accordance with federal regulations....
On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that ...