Philadelphia employers now face more investigations and stiffer punishment under a new law the mayor approved last week. The POWER Act, signed on May 27 and taking effect immediately, adds sweeping worker protections concerning wages, paid sick leave, and retaliation for workplace complaints. It also enhances the Philadelphia Department of Labor’s enforcement powers while increasing penalties and damages against employers who violate the city’s worker protection laws. Here are five key provisions employers should review plus a four-step action plan for compliance.
The Bigger Picture
In the last decade, Philadelphia has granted more workplace protections to workers and heightened compliance requirements for employers, including wage requirements, mandatory paid sick leave, a “fair workweek” law, and a domestic worker bill of rights. In 2020, the city created its own Department of Labor (DOL) and vested it with investigatory and enforcement powers. Now with the latest legislation, called the POWER Act, the city aims to make its DOL an active and impactful workplace regulator.
Key Provisions
1. Expanded “Wage Theft” Powers
The new law expands the Philadelphia DOL’s authority to investigate complaints of wage theft, which includes violations of state and federal wage laws. It empowers a Wage Theft Coordinator to investigate claims and issue orders for employers to pay back wages and penalties. Notably, if an employer fails to produce required records, the law creates a...
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